Setting Up Pipeline Manager Taxation

About Pipeline Taxation

BRM can apply taxes to events rated by Pipeline Manager. You can configure your system to tax pipeline events in one of the following ways:

During the pipeline rating process. Taxing events during pipeline rating allows you to generate pipeline output files that include both usage and tax charges. This is useful when output files are not sent through the billing process. For example, when you rate outcollect roaming calls, you rate calls from another carrier's customer and then send the pipeline output files directly to the other carrier for rating and verification.

Note:

You can apply only flat taxes during pipeline rating. For complex taxation, you must defer taxation to the billing process.
During the billing process. Deferring taxation to the BRM billing process allows you to apply complex tax rules using third-party tax software or customized BRM policy opcodes. It also reduces rounding errors because BRM simultaneously taxes all events of the same type. This configuration works best for most wireless applications because it allows complex taxation.
During both pipeline rating and billing. Taxing events during both pipeline rating and BRM billing allows you to:
- Obtain itemized tax charges for each usage event.
- Tax non-usage events, such as one-time purchases and cycle-time events that are rated in real-time rather than by Pipeline Manager.

Setting Up Pipelines to Tax Events

You can configure a pipeline to apply flat taxes to events. To use flat taxes during pipeline batch rating, you configure ISC_TaxCalc in your pipelines.

Note:

A pipeline can apply only flat taxes. To use more complex taxation, you must defer taxation to the billing cycle.

ISC_TaxCalc must run after the FCT_MainRating module and before the FCT_BillingRecord module. If you want to round the tax balance impact, you can optionally run the FCT_Rounding module immediately after ISC_TaxCalc.

Pipeline Manager applies taxes as follows:

The pipeline input and function modules process call records.
The FCT_MainRating module rates the call record and adds charge packets to the associated charge breakdown record.
The ISC_TaxCalc iScript module applies a flat tax.

See "About Applying a Flat Tax by Using the ISC_TaxCalc iScript" for more information.
The FCT_BillingRecord module consolidates the billing charges and flags whether an event was taxed in a pipeline.

See "About Consolidating Tax Data by Using the FCT_BillingRecord Module" for more information.
(Optional) The FCT_Rounding module rounds tax balance impacts.
The remaining function and output modules finish processing the call records and generating output files.

See "Configuring Pipelines to Apply Flat Taxes" for information about configuring the pipeline for taxation.

Configuring Pipelines to Apply Flat Taxes

To configure your pipelines to apply flat taxes:

Use ISC_TaxCalc in your pipelines.

See "About Applying a Flat Tax by Using the ISC_TaxCalc iScript" and "About Consolidating Tax Data by Using the FCT_BillingRecord Module" for more information.
Configure ISC_TaxCalc.

About Applying a Flat Tax by Using the ISC_TaxCalc iScript

You use the ISC_TaxCalc iScript to apply flat taxes to charges flagged for taxation.

When ISC_TaxCalc processes an event data record (EDR), it determines whether the EDR should be taxed by checking whether the Tax Treatment flag was applied to the pipeline charge that applies to the event. If the flag isn't set, ISC_TaxCalc ignores the EDR and passes it on to the next module in the pipeline. If the Tax Treatment flag is set, ISC_TaxCalc:

Determines which tax rate to use by checking the taxcodes_map data stored in the cache, if the taxcodes_map information is provided:
- If the event meets one of the tax criteria, ISC_TaxCalc uses the appropriate tax rate defined in the taxcodes_map file.
- If the event does not meet any tax criteria, ISC_TaxCalc uses the default tax rate specified in the registry file.
If the TaxCodeMapFilePath parameter is not defined, the module retrieves tax code map data from the /config/taxcodes_map object.
Calculates the flat tax for the pre-tax amount.

Note:

The pre-tax amount is the charged amount minus any discounts.

Populates the tax packet data block in the EDR with the pre-tax amount, tax percentage, and tax balance impact.

About Consolidating Tax Data by Using the FCT_BillingRecord Module

You use the FCT_BillingRecord module to consolidate charge packets, discount packets, and tax packets into an associated BRM billing record in the EDR.

When an EDR is flagged for taxation, FCT_BillingRecord:

Creates a balance impact packet that consolidates the charge packet and any tax packet data.
Flags whether ISC_TaxCalc applied taxes to the EDR by using the PIN_DEFERRED_AMOUNT field. It sets this field to 0 when an EDR contains a tax packet and to PIN_AMOUNT when an EDR does not contain a tax packet.

Sample Flat Tax Configurations

This section shows how to set up flat taxes for two sample applications:

Applying Flat Taxes to Outcollect Roaming Calls

Roaming allows customers of one network operator to use their mobile phones in foreign networks. When customers travel to other regions, they can use the services of any network operator with a roaming agreement with their home network operator.

When customers from another network use your network (outcollect roaming), you rate those calls and bill the customer's network operator for this usage. Applying a flat tax during the rating process allows you to pass on local taxes to the other network operator.

To apply a local flat tax to outcollect roaming calls:

In PDC, ensure that the tax calculation is enabled in charge offers.
Set up a custom flat tax.
Configure the ISC_TaxCalc iScript in your outcollect processing pipeline.

See "Configuring Pipelines to Apply Flat Taxes" for more information.

After the pipeline generates output files that include both usage and tax charges:

Send one output file to the other network operator for verification and rating.
Load settlement data into the BRM database and generate invoices for billing the other network operator.

Applying Flat Taxes to Third-Party Content Usage

Wireless carriers allow customers to access third-party content, such as news and sports scores, through mobile phones. Customers are often charged monthly subscription fees to access the content and usage fees when downloading files. Carriers bill their customers for this usage and then remit some of the fees to the third-party provider.

In this scenario, taxes are applied to:

Usage events during the pipeline batch rating process.
Cycle and one-time purchase events during the billing process.

To configure your system to apply flat taxes to third-party content usage:

In PDC, ensure that tax calculation is enabled in charge offers.
Set up your custom tax rates.
Configure the ISC_TaxCalc iScript in your pipelines.
Use Rated Event (RE) Loader to load your pipeline output files into the BRM database.
Configure BRM to perform deferred taxation.

When BRM completes the billing process, you can run the remittance utility and generate a report summarizing the amount owed to each third-party provider. See "Remitting Funds to Third Parties" in BRM Configuring and Running Billing.