Termination Amount Is Not Calculated Same As The Billed Amount For Partial Period
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
On : 12.1.1 version, Contracts Billing/Termination
Find that when a contract is Terminated the termination credit amount is not the expected amount.
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
The issue can be reproduced at will with the following steps:
1. Set the following partial period attributes in the Global Contract
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
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.
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.
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