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Monthly Cycle Forward Fee Is Being Considered as Billed Earned Whereas It Is Expected to Be Billed Unearned Revenue (Doc ID 2954542.1)

Last updated on SEPTEMBER 24, 2024

Applies to:

Oracle Communications Billing and Revenue Management - Version 12.0.0.0.0 and later
Information in this document applies to any platform.

Goal

It is observed for Monthly cycle forward charges, the journal data is generated as Billed Earned Revenue.

For instance, the account gets billed on the 01st of March and the rental of $30 gets applied as Recurring Monthly Cycle Forward Charge for the Period 01st March - 31st March 2023.

The Billing cycle for Rental: 1st March - 31st March 2023

General Ledger (G/L) cycle : 1st February - 1st March 2023

When the G/L script is run, the data is generated and goes to the 'Billed Earned' section, whereas the business need is for it to be under the 'Billed Unearned' section,

It is known that by definition...

'Earned revenue' is the revenue that is earned at the time that a G/L report is run. Revenue from usage, purchase, and cancellation fees are always earned. Revenue from a cycle forward fee can be earned or unearned, depending on when the G/L report is run.

So, as per the definition, the about mentioned behaviour is as expected.

However, the business requirement is that the above-mentioned charges be considered as part of the 'Billed Unearned' section instead of 'Billed Earned'.

In other words, the business requires that the billed unearned section in the report end for advanced charging products.

Note: In this sample scenario/configuration, the earned_start_t and earned_end_t values are set to 0 in the journal_t table as well as the event_t table.

When an attempt is made to generate the report after updating the Earned_end_t as the 2nd of the month, it generates a billed unearned amount only prorated for one day. Similarly, when incremented by 2 days it generates a billed unearned amount only prorated for two days.

The expectation is to have no manual intervention to manage the data in the journal_t table.

The cycle-forward revenue should be billed-unearned in this case and here is how we can justify it:

Based on the documentation here - "Calculating Billed Earned Revenue"

                   31st March - greatest(1st March or 1st March)
==> 30 - --------------------------------------------------------
                                 31st March - 1st March

                          (31st March) - greatest(1st March)
==> 30 - --------------------------------------------------------
                                 31st March - 1st March

                           30
==> 30 - ---------------------- X 30$
                           30
  
  
==> 30 - 30


==> 0$ (Billed Earned Revenue)

and 'Calculating Unearned Revenue'


                 (31st March) - greatest(1st March or 1st March)
==> ------------------------------------------------------------------ X30
                                  31st March - 1st March


          31st March - 1st March
==> ------------------------------ X $30
                        30


                        30
==> ----------------------X $30
                        30

  
==> $30 ( Billed Unearned Revenue).

This matches with the above requirement that the Monthly Cycle Forward Fee should be considered as Billed Unearned Revenue instead of Billed Earned.

  

Solution

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In this Document
Goal
Solution


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