Proration For A Product With Free Usage Does Not Work (Doc ID 577911.1)

Last updated on SEPTEMBER 26, 2016

Applies to:

Oracle Communications Billing and Revenue Management - Version: 7.2.1.0.0 to 7.5.0.0.0 - Release: 7.2.1 to 7.5.0
Information in this document applies to any platform.
Checked for relevance on 27-Nov-2011

Goal

The customer pays a monthly charge for the product. Proration at cancel time is set up for the
product. Additionally free usage (MB, minutes) is granted to the customer. In case the free usage
is completely used, the customer has to pay an amount for any usage, that is above the limit. At
the beginning of the next cycle, the usage resource is set back to the defined (negative) amount.
This all works fine.

Now the product is canceled in the middle of the billing cycle. As proration for the monthly
charge of the product is configured, the customer should get back a part of the amount, he already
payed in advance. This works fine, as long as the free usage limit was not already exceeded in
that cycle. In case that all usage was completely used before (balance = 0), the proration didn't
work any longer !!!

To elaborate this consider 3 scenario given below :
--------------------------------------------------

1. No use of free MB at all (balance = -1500)
2. Some use of free MB, but not > 1500 (balance = -750)
3. Used all free MB (balance = 0)

Purchased all products on 06. of July and cancelled them on the 20. of July. So, expectation form proration would be a factor of 17/31.

Actual Results are below:

In all 3 cases the balance after cancellation goes to 0.

1. Amount of currency resource calculated (monthly product charge refunded) is -17/31 * product price

2. The amount calculated now is half of result in scenario 1

3. No amount of currency resource is calculated any longer.

The expectation would be, that in all 3 scenarios the prorated monetary amount of the currency resource should be the same as in scenario 1.

There might be an impact with the remaining free MBs and eventually transforming those minutes into currency. But this is not what customer is bothered. The expectation is to give back the money from the monthly cycle charge of the product.

So, the main question here is, what can be done, to archive this ?

Solution

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