Configurable Adjustment of Bill Charge Value

Control how Oracle Subscription Management allocates the residual adjustment created when billed amounts are reconciled with a Quoted Total Contract Value (TCV).

With the new Quoted Total Charge Value Residual Spillover Allocation profile option, a negative residual that would make the final bill line negative can be distributed backward across earlier bill lines for the same charge. Each affected non-negative bill line is reduced only to zero, and any remaining residual continues to the preceding line until the complete adjustment is allocated.

The existing behavior remains the default, so there is no change unless the new allocation method is enabled.

The feature is controlled by the site-level Quoted Total Charge Value Residual Spillover Allocation profile.

  1. In Setup and Maintenance, open the task used to manage administrator profile values.

  2. Search for Quoted Total Charge Value Residual Spillover Allocation.

  3. Set the Site-level value to one of the following:

    • Last Line: Applies the complete residual to the final bill line. This is the default.

    • Prior Lines: Distributes a negative residual backward when applying it to the selected bill line would make that line negative.

  4. Save the profile value.

Because the setting is defined at Site level, the selected behavior applies across the environment to all eligible Quoted TCV charges.

Example

A recurring charge has four bill lines of $100 each:

Billing Schedule

Billing period Original amount
Period 1 $100
Period 2 $100
Period 3 $100
Period 4 $100
Total $400

The Quoted TCV is $150, resulting in a negative residual adjustment of $250.

With Last Line, the entire adjustment is applied to Period 4. Its amount becomes negative:

Revised Billing- Existing

Period 1 Period 2 Period 3 Period 4 Total
$100 $100 $100 -$150 $150

With Prior Lines, the residual is allocated backward:

  1. Period 4 is reduced from $100 to zero, leaving $150 to allocate.

  2. Period 3 is reduced from $100 to zero, leaving $50 to allocate.

  3. Period 2 is reduced from $100 to $50.

  4. Period 1 remains unchanged.

Revised Billing

Period 1 Period 2 Period 3 Period 4 Total
$100 $50 $0 $0 $150

The final bill-line total equals the Quoted TCV, and no originally non-negative bill line becomes negative.

  1. Prevent originally non-negative recurring bill lines from becoming negative during Quoted TCV reconciliation.

  2. Reduce downstream invoicing and electronic-invoicing validation issues caused by negative invoice lines.

  3. Preserve the Quoted TCV while distributing adjustments more appropriately across billing periods.

  4. Maintain existing billing behavior for organizations that don’t require backward allocation.

  5. Apply the behavior consistently through a single site-level configuration.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

  1. Last Line is the default value and preserves the existing application behavior.

  2. Backward allocation occurs only when Prior Lines is selected and the residual would make a positive or zero bill line negative.

  3. If the complete residual can be applied to the selected bill line without making it negative, the system doesn’t distribute it to earlier lines.

  4. Positive residual adjustments continue to be applied to the selected final bill line.

  5. A zero-amount bill line remains at zero during backward allocation, and the residual moves to the preceding line.

  6. The protection applies only to bill lines that were originally positive or zero. Existing negative bill lines continue to use the standard adjustment behavior.

  7. Allocation is restricted to prior bill lines belonging to the same charge.

  8. The design assumes that the residual can be fully absorbed by the available prior bill lines.

  9. Existing charge and bill adjustments are reapplied to affected lines so that bill-line amounts and adjustment amounts remain consistent.

  10. The feature applies only to charges already eligible for Quoted TCV reconciliation. Usage charges aren’t included.

  11. Milestone billing isn’t considered for such adjustment on Bill /Quoted TCV..