Overview of Subscription Billing

Subscription Management supports configurable billing frequencies, advance and arrears billing, and partial period billing. You can use any of these billing strategies for your subscriptions. You can also configure your billing for prepayments at the product level.

Subscription Management offers you the flexibility to bill customers monthly, quarterly, annually, or by your company-defined frequencies. Company-defined frequencies can be bi-monthly, weekly, and so on. Use the different billing capabilities to do these:

  • Bill charges in advance or in arrears.

  • Stop billing.

  • Use company-specific billing rules.

  • Schedule bill runs for business units or customers.

  • Create company-specific billing schedules.

  • Create a credit memo and capture the reason for creating a credit memo. You can create a credit memo only after the bill line is interfaced to Oracle Accounts Receivable.

  • Create Bill adjustment and capture the reason for creating a bill adjustment.

Note: You can create and manage the reasons for creating the credit memo and bill adjustments using:

Invoice Text

To process the descriptions of the invoice by Accounts Receivables, you must add attributes for the subscription invoice text. This includes charge name, product name, bill to date, bill from date, and so on. The subscription invoice text supports up to 150 characters. By default the invoice text appears as follows: [$Subscription Number] [$Product Name] [$Charge Name] [$Bill from Date] [$Bill to Date]. For more information, see the Subscription Profiles setup in Implementing Subscription Management.

Summarized Versus Detailed Billing

When you add a coverage product to your subscription, you have the option to view the summarized charges of each line item from multiple covered levels or separate line items for each charge. For summarized bills, bill lines across all covered lines are grouped by the charge definition for specific periods and displayed at the coverage product level.

Let's see an example of detailed and summarized billing. Here's a setup of a coverage product and its covered levels.

Coverage Line - Gold Support 1 Year
  Charge - Activation Fee $1000
  Covered Level Asset: A Qty: 6
    Charge - Setup Fee $1000
    Charge - Monthly Service Fee $100/Month
  Covered Level Asset: B Qty:5
    Charge - Setup Fee $500
    Charge - Monthly Service Fee $50/Month

Here's how your detailed bill looks like:

Period

Charge Name

Amount

Invoice Text

0

Activation Fee

$1000

0

Setup Fee

$1000

Asset A

0

Setup Fee

$500

Asset B

1

Monthly Fee

$100

Asset A

1

Monthly Fee

$50

Asset B

Now, let see how your summarized bill looks like:

Period

Charge Name

Amount

0

Activation Fee

$1000

0

Setup Fee

$1500

1

Monthly Fee

$150

Note that the covered lines aren't grouped but listed individually in the detailed bill. In the summarized bill, you can analyze that the charge items are grouped by Setup Fee and Monthly Fee.

Revenue Management Cloud Integration

Oracle Revenue Management Cloud Service needs subscriptions-related data to manage the revenue recognition process. Revenue is recognized for the performance obligations as and when different events occur. As part of this integration process, Revenue Management Service does the following:

  • Automatically imports subscription lines for subscription products, coverage products, and usage products.

  • Automatically imports subscription changes as revisions for Oracle Subscription Management. These are treated as retrospective accounting revisions in Revenue Management

  • Imports subscription billing from Receivables to Revenue Management to clear contract asset balances, record discounts, and record initial performance events.

Here are the subscription events that initiate data transfer to Revenue Management:

  • Subscription amendment

  • Subscription renewal

  • Subscription termination

  • Usage billing

  • Evergreen billing

  • Pricing term

Note: You can only interface subscription records to Revenue Management when both subscription header and associated products are in the active status.