Adjusted Taxes Counted Twice, Once During Corrective Billing, Once During Final Billing (Doc ID 1637086.1)

Last updated on DECEMBER 02, 2022

Applies to:

Symptoms

This problem happens with Billing and Revenue Management (BRM) 7.5 PS4 + patch 17543970.

When Rerating happens, followed by Corrective Billing, the taxes are adjusted twice, once during the Corrective Billing, and another time during Final Billing.

The scenario is :

1. 01/Jan: Create account
   
   
2. 01/Jan: Purchase a cycle arrear product with bill time tax and a cycle arrear discount
   
   
3. 01/Feb: Run partial bill
   
   
4. 06/Feb: Run final bill (Assuming delay billing period is 5 days)
   
   
5. 07/Feb: Update product rate
   
   
6. 07/Feb: Rerate RC (cycle arrear) event for this account
   
   
7. 07/Feb: Run invoice
   
   
8. 07/Feb: Run corrective bill
   
   
9. 01/Mar: Run partial bill
   
   
10. 06/Mar: Run final bill

It is expected that :

• February bill: Rerated amount - Backed out amount + Backed out discount - Rerated discount - Backed out tax + Rerated tax
• March bill: Amount - discount + Tax

But instead :

• February bill: Rerated amount - Backed out amount + Backed out discount - Rerated discount - Backed out tax (T1) + Rerated tax (T2)
• March bill: Amount - discount + Tax - Backed out Tax (T1) + Rerated Tax (T2)

T1 and T2 are calculated once more when the March bill is generated. Note that they are allocated to the Feb bill, increasing the total due of Feb bill.

Ex :

• CA fees is $100 per month
• Discount is 10%
• Defer tax is 10%

  1. On Feb 6th final billing : 100 (CA fees) -10 (discount) + 9 (tax) = 99
  Balance = $99

  2. Rate changed from 100 to 200
  Rerating will result in : -100 +10 -9 + 200 -20 +18 = 198
  Balance = $198

  It is expected that the ARCHIVE_STATUS is set so that these amounts are not picked up in the next Final billing defer taxation calculation.

  3. On March 6th Billing
  $200 -20 +18 = $198

Changes

This problem happens with BRM 7.5 PS4 + patch 17543970

Cause

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