Termination Amount Is Not Calculated Same As The Billed Amount For Partial Period (Doc ID 1268758.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Service Contracts - Version 12.1.1 and later
Information in this document applies to any platform.
Checked for relevance 29-Mar-2015

Symptoms

On : 12.1.1 version, Contracts Billing/Termination


Find that when a contract is Terminated the termination credit amount is not the expected amount.

EXPECTED BEHAVIOR
-----------------------
Expect that the termination credit would be calculated so that the following is true:

Total Billed - Termination Credit = The Amount Billed through the Termination Date

STEPS
--------
The issue can be reproduced at will with the following steps:
1. Set the following partial period attributes in the Global Contract
    Defaults setup:
      Period Type: Fixed
      Period Start: Service
      Price UOM: Month
2. Author a contract with the following:
    a. Contract Start Date: 15-Jan-2009
    b. Contract End Date: 04-jan-2012
    c. Sub line start date = 20-Feb-2009
    d. Sub line end date = 04-Jan-2012
3. Resulting Billing Schedule should resemble this (Amounts will differ):

Bill From   Bill To       Amount
---------     -------        ----------
15-Jan-09 14-Feb-09             0
15-Feb-09 14-Mar-09       7.67
15-Mar-09 14-Apr-09     10.00
15-Apr-09 14-May-09     10.00
...
15-Nov-11 14-Dec-11      10.00
15-Dec-11 4-Jan-12          7.663333333

4. Activate and Bill the contract through the current date (02-Sep-2010 in
   this example).
   Result should be a Total Billed Amount of 187.67 (18 @ 10 + 7.67 for the
   first month billed).

5. Initiate a Termination of the contract effective 15-Mar-09.
   Click on Review to view the Termination Credit Amount.
   Amount displayed is 179.34.

6. Expect that the Net Amount Billed to the customer would be the amount in
    the billing schedule for 15-Feb-09 through 14-Mar-09 (7.67) but that is not the case:

     Total Amount Billed: 187.67
     Termination Credit: <179.34>
                                   -----------
     Net Billed Amount       8.33

Changing the Termination Date to 14-Feb-09 results in a credit of 179.67
with a net billing of 8.00.
Changing the Termination Date to 13-Feb-09 results in a credit of 180.00
with a net billing of the originally expected 7.67.

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot terminate contracts and have the termination credit amount automatically calculated as expected.

Cause

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