Understanding the Billing Calculation Process

The Billing Calculation process creates billing charge records for a selected billing calendar. Each billing charge record contains charge information for an individual plan type and billing period combination.

The system queries the Manage Base Benefits business process tables to determine the coverage that is in effect for the plan type as of the end date of the billing calendar. It passes the coverage code and other relevant data to the Deduction Calculation (DedCalc) programs. The DedCalc programs calculate the billing amount using normal rules, which the billing system then modifies based on the rate qualifier.

Rerunning the Billing Calculation Process

Just as with PeopleSoft Payroll for North America, you can rerun billing calculations repeatedly for a given billing calendar until you print billing statements for that calendar. The system backs out any previously calculated charges as well as any open credit that it applied previously to the charges.

The system cannot reprocess charges for a billing calendar if you have made adjustments to the charges or have applied payments.

Retroactive Processing

When retroactive processing is called for, the Billing Calculation process compares:

  • Billing calendar dates.

  • The date that billing begins for the plan type.

  • The dates of any charge records for the plan type.

The system then generates retroactive billing charge records for all previous billing periods that:

  • Have passed since the billing begin date.

  • Do not have billing charge records.

Billing Calculation Limitations

The Billing Calculation process calculates payments based on employee enrollments in the Manage Base Benefits business process tables and the rates that are specified in benefit programs. The Billing Calculation process does not:

  • Include any offset from credits when calculating deductions.

    You enter flat amounts into Billing Enrollment records to simulate the use of credits.

  • Calculate imputed income or any other taxable or nontaxable benefit calculations.

    The process calculates before-tax and after-tax deduction classifications only.

  • Bill benefit programs, leave plans, and vacation buy and sell plans (plan types 01, 5x, and 9x).

  • Update any deduction or other payroll balances.

    You have to do this manually. Not making these adjustments can affect imputed income reporting, savings plan limit testing, and flexible savings plan (FSA) claims processing.

  • Check group limits on life and AD/D insurance plans.

The Billing Calculation process bills only flat-dollar amounts for savings plans, FSA plans, retirement plans, and pension plans (plan types 4x, 6x, 7x, and 8x).