Bill Is Incorrectly Calculated If Step Tier Price Components Are Setup in Descending Order
(Doc ID 2551879.1)
Last updated on FEBRUARY 11, 2020
Applies to:
Oracle Financial Services Revenue Management and Billing - Version 2.6.0.1.0 and laterInformation in this document applies to any platform.
Symptoms
On : 2.6.0.1.0 version, BI - Billing
ACTUAL BEHAVIOR
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Bill is incorrectly calculated if the step tier price components are setup in descending order.
Currently a bill is calculated incorrectly if effective pricing is setup in descending order, i.e. (OT) Step Tier 1 (%) set up with the largest amount range, and the last tier is set up with the smallest range. For example:
EOP Balance: 130,000,000.5
Sequence 16: (OT) Step Tier 1 (%) 0.6% : 50,000,000.00 - 99,999,999,999,999.00
Sequence 17: (OT) Step Tier 2 (%) 0.65% : 25,000,000.00 - 50,000,000.00
Sequence 18: (OT) Step Tier 3 (%): 0.75% : 10,000,000.00 - 25,000,000.00
Sequence 19: (OT) Step Tier 4 (%): 0.8% 0 -10,000,000.00
As per our expectation EOP amount should be calculated using all 4x tiers (as below).
Rate Fee per tier Fee From To
Tier 4 0.80 10,000,000.00 80,000.00 $0 $10,000,000.00
Tier 3 0.75 15,000,000.00 112,500.00 $10,000,000.00 $25,000,000.00
Tier 2 0.65 25,000,000.00 162,500.00 $25,000,000.00 $50,000,000.00
Tier 1 0.60 80,000,000.50 480,000.00 $50,000,000.00 $999,999,999,999.00
Total Fee per year: 835,000.00
Total Fee prorated according to 90/360 rate schedule: 208,750.00 $
However, currently EOP is calculated using only one tier % (130,000,000.05 falls unde Tier 4 using 0.6%), but not full amount is calculated using this rate - only the last portion that is 80,000,000.5 : 80,000,00.5 * 0.6% = 480,000.00 ; fee prorated 90/360 is 480,000.00 * 90/360 = 120,000.00 $.
This is incorrect.
Note that in the old 2.4 RMB env this is not reproducible and bill is calculated correctly.
Also please consider that if Tiers are populated in ascending order (i.e. Tier 1: 0- 10m, Tier 2: 10-25m; etc) then bill is calculated correctly.
Cause
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In this Document
Symptoms |
Cause |
Solution |
References |