Example of Editing Recurring Billing
Use the Edit Recurring Billing dialog to set up a complex billing plan for a sales order.
For example, set up a plan that includes more than one contract period, bills monthly, adds a fee for some services, and so on.
Assume you work for Mega Phones, a company that sells subscriptions for mobile phones.
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The service comes in one, two, and three year contract periods.
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Mega Phones allows only monthly billing.
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Mega Phones provides enhanced service on a monthly basis, and the enhanced service is $50 extra for each period.
Here's what you need to do.
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Set the contract start date to the same day that the customer calls to request service.
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Start service according to the date that the customer requests.
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Set the billing start date to the date that the service actually starts.
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Bill customers on the 20th day of each month.
Assume today's date is November 15, 2023, which is the order date, and a customer calls and requests service.
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Two year service agreement.
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Enhanced service in months 4, 5, and 6 because they want to use the Mega Phones unlimited international conferencing application during these periods.
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Start the service the next day, which is November 16, 2023.
You use the Edit Recurring Billing dialog to set up this plan. Here are the values you set in the top part of the dialog.
|
Attribute |
Value |
|---|---|
|
Contract Start Date |
November 16, 2023 |
|
Contract End Date |
November 16, 2025 |
|
Recurring Billing Start Date |
November 20, 2023 |
|
Recurring Billing End Date |
Leave empty. |
|
Recurring Invoice Start Date |
Leave empty. Order Management will use the date that you set for the Recurring Billing Start Date as the date to start the recurring invoice period. For details, see the How Accounts Receivable Sets Invoice Dates section in this topic. |
|
Number of Periods |
24 You must manually calculate the number of periods. In this example, the agreement is for two years, and the billing happens monthly. So the calculation is 12 multiplied by 2 equals 24 periods. For another example, if the agreement is for three years and billed quarterly, then the calculation is 3 multiplied by 4 equals 12 periods. |
|
Frequency |
Month |
Learn how to use this dialog. For details, see Edit Recurring Billing.
Here are the values that you set in the Billing Plan Overrides area of the Edit Recurring Billing dialog.
|
Period |
Quantity |
Amount |
|---|---|---|
|
4 |
Leave empty. |
50.00 |
|
5 |
Leave empty. |
50.00 |
|
6 |
Leave empty. |
50.00 |
How Accounts Receivable Sets Invoice Dates
Here's what Oracle Accounts Receivable does for this example.
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Sets the date for the first invoice to November 15, 2023 by default, which is the order date, and includes billing for this invoice for period November 16, 2023 through November 19, 2023, which is four days of service.
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Bills subsequent invoices monthly. For example, it sets the date for the second invoice to December 15, 2023, and includes billing for this invoice for November 20, 2023 through December 19, 2023.
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Sets the date for the last invoice to Nov 15, 2025, and includes billing for this invoice through November 16, 2025.
Set an Invoice Date That's Different From the Billing Date
The second billing period is November 20, 2023 through December 19, 2023, and this billing period might need an invoice date that happens on a date that's different from the 15th day of every month.
For example, assume Mega Phones policy requires you to create invoices on the first day of each month, but you set the Recurring Billing Start Date to November 20, 2023 because this is the date that the service actually starts.
To meet this requirement, you can set Recurring Invoice Start Date to December 1, 2023. Oracle Accounts Receivable will then create subsequent invoices and set the invoice date to the first day on each month instead of to the 15th day of the month.