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Oracle® Communications Billing and Revenue Management Calculating Taxes
Release 7.5

E16722-04
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2 Setting Up Pipeline Manager Taxation

This chapter describes how to configure your Oracle Communications Billing and Revenue Management (BRM) system to tax events rated by a batch pipeline.

Before reading this document, you should be familiar with BRM architecture, BRM taxation, and pipeline batch rating. For information, see the following documents:

Configuring Your System to Tax Events Rated by a Batch Pipeline

To configure your system to tax events rated by a batch pipeline, perform the following steps:

  1. Enable taxation in your Pipeline Manager rate plans.

    See "Enabling Taxation in Pipeline Rate Plans" for more information.

  2. Set up your tax rates.

    See "Setting Up Tax Rates" for more information.

  3. Configure pipelines to apply taxes during pipeline batch rating.

    See "Setting Up Pipelines to Tax Events" for more information.

You can also configure BRM to apply taxes during the billing process. See "Enabling Taxation During Real-Time Rating or Billing" for more information.

Enabling Taxation in Pipeline Rate Plans

When you create pipeline rate plans in Pricing Center, you specify whether events rated by those rate plans should be taxed.

To enable taxation for events in a pipeline rate plan:

  1. In choose View - Pipeline Toolbox and then click Rate Plan.

  2. Double-click an existing rate plan, or click New to create a new rate plan.

  3. In the Rate Plan dialog box, select the Tax Treatment option as shown in Figure 2-1.

Figure 2-1 Rate Plan Dialog Box

Description of Figure 2-1 follows
Description of "Figure 2-1 Rate Plan Dialog Box"

For more information on how to enable taxation in pipeline rate plans, see Pricing Center Help.

Setting Up Tax Rates

To set up tax rates, perform the following:

Defining Tax Information in Pricing Center

Follow these steps to define tax information in Pricing Center:

  1. Define your tax codes:

    1. Choose View - Pipeline Setup Toolbox.

    2. In the Pipeline Setup Toolbox, choose Financial - Tax Code.

    3. Double-click an existing tax code, or click New to create a new tax code.

    4. In the Tax Code dialog box, specify a tax code name, tax group, tax rate, and validity period.

  2. Define your tax groups:

    1. In the Pipeline Setup Toolbox, choose Financial - Tax Group.

    2. Double-click an existing tax group, or click New to create a new tax group.

    3. In the Tax Group dialog box, specify a tax group name, tax code, tax rate, and validity period.

  3. Associate your tax code with a general ledger (G/L) account:

    1. In the Pipeline Setup Toolbox, choose Financial - GL Account.

    2. Double-click an existing G/L account, or click New to create a new GL account.

    3. In the GL Account dialog box, select a tax code in the Tax Code field.

  4. Associate your G/L account with a price model:

    1. Choose View - Pipeline Toolbox from the Pricing Center menu.

    2. In the Pipeline Toolbox, choose Price Model.

    3. Double-click an existing price model, or click New to create a new price model.

    4. In the Price Model dialog box, click the Price Model Step tab.

    5. Select an existing price model step and click Edit, or click New to create a new step.

    6. In the Price Model Step dialog box, select a G/L account from the GL Account list.

See Customer Center Help for more information on setting up data for pipeline rating.

Configuring Tax Rates in the Tax Code Mapping File

To map event criteria to specific tax rates:

  1. Open the tax codes mapping file (BRM_Home/sys/cm/taxcodes_map) in a text editor.

  2. Add entries for any custom flat taxes.

    BRM uses these tax rates during the pipeline batch rating process. See "Calculating Flat Taxes by Using the taxcodes_map File" for more information.

    For example, the following entry specifies a custom flat tax of 4.5% for all calls made to Great Britain between February 1, 2004 and January 31, 2005:

    # Taxcode   Pkg    Rate    Start      End        Lvl    List    Descr    Rule
    # -------   ---    ----    --------   --------   ---    ----    -----    ----
      NORM    : U    : 4.5   : 02/01/04 : 01/31/05 : Fed  : GB    : VAT-G  : Std
      
    
  3. Add tax code entries for any third-party tax software.

    BRM uses these codes during the billing cycle only. See "About Specifying Tax Codes" for more information.

    #   Taxcode           Pkg   Code1   Code2   Si   Wt_code   Cmdty_code
    #   ---------------   ---   -----   -----   --   -------   ----------
        usage           : T  :  85000 : 85000 :  S   :         :
      
    
  4. Stop and restart your pipelines to apply your changes.

Setting Up Pipelines to Tax Events

You can configure a pipeline to apply flat taxes to events. To apply flat taxes during pipeline batch rating, you configure ISC_TaxCalc in your pipelines.

Note:

A pipeline can apply only flat taxes. To use more complex taxation, you must defer taxation to the billing cycle.

ISC_TaxCalc must run after the FCT_MainRating module and before the FCT_BillingRecord module. If you want to round the tax balance impact, you can optionally run the FCT_Rounding module immediately after ISC_TaxCalc as shown in Figure 2-2.

Figure 2-2 Pipeline Taxation Process with FCT_Rounding

Description of Figure 2-2 follows
Description of "Figure 2-2 Pipeline Taxation Process with FCT_Rounding"

Pipeline Manager applies taxes as follows:

  1. The pipeline input and function modules process call records.

  2. The "FCT_MainRating" module in BRM Configuring Pipeline Rating and Discounting rates the call record and adds charge packets to the associated charge breakdown record.

  3. The "ISC_TaxCalc" iScript module in BRM Configuring Pipeline Rating and Discounting applies a flat tax.

    See "About Applying a Flat Tax by Using the ISC_TaxCalc iScript" for more information.

  4. The "FCT_BillingRecord" module in BRM Configuring Pipeline Rating and Discounting consolidates the billing charges and flags whether an event was taxed in a pipeline.

    See "About Consolidating Tax Data by Using the FCT_BillingRecord Module" for more information.

  5. (Optional) The "FCT_Rounding" module in BRM Configuring Pipeline Rating and Discounting rounds tax balance impacts.

    See "Configuring Resource Rounding" in BRM Setting Up Pricing and Rating.

  6. The remaining function and output modules finish processing the call records and generate output files.

See "Configuring Pipelines to Apply Flat Taxes" for information about configuring the pipeline for taxation.

Configuring Pipelines to Apply Flat Taxes

To configure your pipelines to apply flat taxes:

  1. Use ISC_TaxCalc in your pipelines.

    See "About Applying a Flat Tax by Using the ISC_TaxCalc iScript" and "About Consolidating Tax Data by Using the FCT_BillingRecord Module" for more information.

  2. Configure ISC_TaxCalc. See "ISC_TaxCalc" in BRM Configuring Pipeline Rating and Discounting.

About Applying a Flat Tax by Using the ISC_TaxCalc iScript

You use the ISC_TaxCalc iScript to apply flat taxes to charges that are flagged for taxation.

When ISC_TaxCalc processes an event data record (EDR), it determines whether the EDR should be taxed by checking whether the Tax Treatment flag was applied to the pipeline rate plan that applies to the event. If the flag isn't set, ISC_TaxCalc ignores the EDR and passes it on to the next module in the pipeline. If the Tax Treatment flag is set, ISC_TaxCalc:

  • Determines which tax rate to use by checking the taxcodes_map data stored in the cache:

    • If the event meets one of the tax criteria, ISC_TaxCalc uses the appropriate tax rate defined in the taxcodes_map file.

    • If the event does not meet any tax criteria, ISC_TaxCalc uses the default tax rate specified in the registry file.

  • Calculates the flat tax for the pre-tax amount.

Note:

The pre-tax amount is the charged amount minus any discounts.
  • Populates the tax packet data block in the EDR with the pre-tax amount, tax percentage, and tax balance impact.

    Note:

    You can round the tax balance impact by running the "FCT_Rounding" module in BRM Configuring Pipeline Rating and Discounting immediately after ISC_TaxCalc.

About Consolidating Tax Data by Using the FCT_BillingRecord Module

You use the FCT_BillingRecord module to consolidate charge packets, discount packets, and tax packets into an associated BRM billing record in the EDR.

When an EDR is flagged for taxation, FCT_BillingRecord:

  • Creates a balance impact packet that consolidates the charge packet and any tax packet data.

  • Flags whether ISC_TaxCalc applied taxes to the EDR by using the PIN_DEFERRED_AMOUNT field. It sets this field to 0 when an EDR contains a tax packet and to PIN_AMOUNT when an EDR does not contain a tax packet.

Sample Flat Tax Configurations

This section shows how to set up flat taxes for two sample applications:

Applying Flat Taxes to Outcollect Roaming Calls

Roaming allows customers of one network operator to use their mobile phones in foreign networks. When customers travel to other regions, they can use the services of any network operator that has a roaming agreement with their home network operator.

When customers from another network use your network (outcollect roaming), you rate those calls and bill the customer's network operator for this usage. Applying a flat tax during the rating process allows you to pass on local taxes to the other network operator.

To apply a local flat tax to outcollect roaming calls:

  1. In Pricing Center, ensure that the Tax Treatment flag is set in your pipeline rate plans.

    See "Enabling Taxation in Pipeline Rate Plans" for more information.

  2. Set up a custom flat tax.

    See "Setting Up Tax Rates" for more information.

  3. Configure the ISC_TaxCalc iScript in your outcollect processing pipeline.

    See "Configuring Pipelines to Apply Flat Taxes" for more information.

After the pipeline generates output files that include both usage and tax charges:

  • Send one output file to the other network operator for verification and rating.

  • Load settlement data into the BRM database and generate invoices for billing the other network operator.

For more information about outcollect roaming, see "About Roaming Outcollect Processing" in BRM Configuring Roaming in Pipeline Manager.

Applying Flat Taxes to Third-Party Content Usage

Wireless carriers allow customers to access third-party content, such as news and sports scores, through their mobile phones. Customers are often charged monthly subscription fees to access the content, and usage fees when they download files. Carriers bill their customers for this usage and then remit a portion of the fees to the third-party provider.

In this scenario, taxes are applied to:

  • Usage events during the pipeline batch rating process.

  • Cycle and one-time purchase events during the billing process.

To configure your system to apply flat taxes to third-party content usage:

  1. In Pricing Center, ensure that the Tax Treatment flag is set in your pipeline rate plans.

    See "Enabling Taxation in Pipeline Rate Plans" for more information.

  2. Set up your custom tax rates.

    See "Setting Up Tax Rates" for more information.

  3. Configure the ISC_TaxCalc iScript in your pipelines.

    See "Configuring Pipelines to Apply Flat Taxes" for more information.

  4. Use Rated Event (RE) Loader to load your pipeline output files into the BRM database.

    See "Understanding Rated Event Loader" inBRM Configuring Pipeline Rating and Discounting.

  5. Configure BRM to perform deferred taxation.

    See "About Specifying when to Tax Events" for more information.

When BRM completes the billing process, you can run the remittance utility and then generate a report that summarizes the amount owed to each third-party provider. For more information, see "Remitting Funds to Third Parties" in BRM Configuring and Running Billing.