Billing Time Taxation Is Not Applying Properly In BRM For Inclusive Type Taxcodes. (Doc ID 2940252.1)

Last updated on APRIL 05, 2023

Applies to:

Goal

On Oracle Communications Billing and Revenue Management (BRM) 12PS7 environment, for account which purchased a charge offering that includes a Cycle Forward Monthly (CFM) charge configured for taxation at billing time (with a tax code having rule type as INCLUSIVE), when running billing one month after account creation, tax is not calculated as expected, as /event/billing/cycle/tax has only one balance impact with AMOUNT equal to 0.

As percent of that tax code is 7%, and initial balance impact of the CFM charges is 200(100+100), it is expected tax event will have an impact of 13,08 (out from total balance impact of 200)

Please note behavior is as expected if using tax code having rule type as STANDARD.

Steps to reproduce the problem:

a. configure new tax code having rule type as "Inc: Tax inclusive"

b. configure new charge offer as below, and use newly created tax_code:

Charge Offer
-------------
Impact Amount Balance Element Per Unit Amount Is Valid Proration Discounting
Debit 100.00 <currency_BalEl> Fixed Charge Not Applicable _Do not prorate _Do not discount

Charge Details
--------------
Charge Category: Recurring
Charge Type: EventBillingProductFeeCycleCycle_forward_monthly
Pricing Profile: Subscription
Measured By: Occurrence
Stop Charging: Never

Taxation
Apply Taxes: At Billing
Use Tax Code: <newly_created_TC>

Cycle Settings

In Advance Billing: Don't bill in advance
Cycle Alignment: Alignment with billing

Proration:
When purchased mid-cycle: No Charge
When cancelled mid-cycle: No charge
When the cycle changes: No Charge

c. create account and purchase newly created charge offer

d. move pin_virtual_time one month later and run billing

Is this a bug or it is expected product behavior?
 

Solution

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