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Invoice Logic for Agreements

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The Invoicing Engine creates a separate, independent invoice for every agreement line item and for every invoicing period. For every agreement line item, it generates invoices for all charges in the period after the last invoice was produced.

The Invoice Engine uses the following logic to process invoices for agreement line items:

If the Valid check box is selected in the parent agreement record, proceed.
If all invoices have already been generated for the invoice period (from the Invoice Start Date to the Invoice End Date), stop the invoicing process on this agreement line item.
If the invoice schedule for this agreement line item requires an invoice at this time (in other words, if an invoice is required before the Advance To date), proceed.
If the invoiced agreement line item was cancelled and the invoice period is before the cancel date, proceed.

NOTE:  The cancel date can be set in the Cancel field in the Agreements screen, Line Items view, Line Detail subview.

Process all the charges for all billing types specified in the invoice plan associated with the agreement line item.
Generate an invoice.

The Invoice Engine can generate periodic invoices that include these types of charges:

NRC. Installment payments for one-time (nonrecurring) charges; for example, a one-time fee for service billed in one or more installments.
RC. Payment of periodic (recurring) charges; for example, a monthly service charge.
Usage. Payments based on the use of an asset; for example, the number of copies produced on a color copier each month.
Adjustments. Credits or charges for the selected period.

NOTE:  To increase flexibility, invoicing for agreements is implemented as a Business Service.

Logic for NRC Line Items

The Invoice Engine uses the following logic to process NRC line items:

If there is a previous invoice, find the NRC Invoiced amount. If the Non-Recurring amount is greater than or equal to the NRC Invoiced amount plus the next amount to be invoiced, proceed.
If this is the first invoice and if the NRC amount for the line item is greater than zero, proceed.
Calculate the NRC amount for the next invoice, using the NRC plan, if selected.
Create an NRC line item on the invoice.

Logic for RC Line Items

The Invoice Engine uses the following process logic for recurring cost line items:

If the recurring charge for the invoice is greater than zero, proceed.
Calculate the RC amount.
Create an RC line item on the invoice.

Logic for Usage Line Items

To generate invoices from usage line items, you must first define the asset on which the usage is measured. You specify this asset in the Usage Asset # field in the Agreements screen, Line Items view, Line Detail subview. For accurate billing, the invoice schedule must match the measurement frequency of the asset.

If you want to invoice on estimated usage, you must define certain fields in the product measurement record of the asset's product. Table 64 lists these fields.

Table 64.  Product Measurement Fields

Field	Comments
Frequency	The schedule for obtaining readings for the specified measurement.
Expected Usage	A numeric value for expected use. If usage readings are unavailable and if the Estimate check box is selected, then the Invoice Engine uses this value to bill for usage.
Use Basis (Days)	The time period, in days, over which the expected use is to occur. This value must match the Frequency.

You define these fields in the Product Administration screen, Product Measurements view. For more information, see Product Measurements View.

The Invoice Engine uses the following logic for usage line items:

If there was a previous invoice for this agreement line item's use plan, find the reading on the last invoice.
If this is the first invoice for the use plan, find the reading closest to the Use Start date.
Find the reading closest to the current date or the Advance Invoice date.
If there is no new reading since the last invoice or the Use Start date, and if the Estimate check box is selected (on the Service Administration screen, Use Plans view), use the calculated average use defined in the Usage field (Assets screen, Measurements view) as the estimated reading.
If a reading is found, verify these values on the reading:
Is the Complete check box selected?
Is the Use Plan Bill Method (defined in the Product Administration screen, Product Measurements view) set to Incremental or Absolute?
If the conditions in Step 5 are satisfied, calculate the usage.

Logic for Adjustment Line Items

The Invoice Engine uses the following process logic for adjustment line items:

For the invoice period and agreement, if any value exists in the Adjustment field, add a new line item of this amount to the invoice.
Create an adjustment line item on the invoice.
Clear the Adjustment and the Adjustment Reason fields.

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