Account Level Payment Distribution

Until now, you were able to match a payment against a particular bill of an account. Oracle Revenue Management and Billing now provides the ability to apply a payment on an account which will get matched against the unpaid bills of the account. This feature is only applicable for accounts which practice open item accounting. The system supports the account level payment distribution through the following modes:

  • Inbound web service

  • EDI 820 file

  • Payment request

  • Payment upload

While creating a match type for the account level payment distribution, you must set the entity type of the match type to Account. Earlier, the manual distribution algorithm of a match type was invoked only when the payment distribution was done through the payment request feature. Now, the manual distribution algorithm of a match type is invoked when the payment distribution is done using any of the above modes. The existing manual distribution algorithm spot of a match type is enhanced to support the account level payment distribution. In case of the account level payment distribution, the manual distribution algorithm spot receives the account ID as the input parameter. When this algorithm spot is invoked through the payment request feature, the account ID is passed as the match value. However, when this algorithm spot is invoked through the inbound web service, EDI 820, and payment upload feature, the account ID is not passed as the match value. Instead, the payment is distributed using the payee account ID. The manual distribution algorithm spot then returns a list of unpaid bills of the account.

A new manual distribution algorithm named C1-MD-ACCT is introduced in this release. It distributes the payment amount against the unpaid bills of the account in the ascending order of due date (i.e. bill with the oldest due date will have high priority). If there are multiple unpaid bills with the same due date, the system distributes the payment amount against the unpaid bills in the ascending order of the unpaid amount (i.e. bill with the lowest amount will have high priority). And, if there are two or more unpaid bills with the same due date and unpaid amount, the system will randomly distribute the payment amount against any of the unpaid bills of the account.

Once the system distributes the payment amount against the unpaid bills of the account, the system creates a payment for each unpaid bill. Here, all these payments would be created under the same payment event.

Any excess amount that is left after distributing the payments on the unpaid bills of the account should be applied on the on-account contract of the account. The system derives the on-account contract using the contract type specified in the On-Account Contract Type option type of the C1-ADJ-PAY feature configuration. If the on-account contract of the specified contract type is not available for the account, the system creates on-account contract using the contract type specified in the On-Account Contract Type option type of the C1-ADJ-PAY feature configuration. The system then parks the excess credit payment on the on-account contract of the account.

While creating the excess credit payment, the system uses the match type which is specified in the On-Account Match Type option type of the C1-ADJ-PAY feature configuration.

Once all payments including the excess credit payment is created, the system will store the payee account ID on all payments when the payment is applied at the account level. The payee account ID is stored as a characteristic using the characteristic type which is specified in the Account Level Payment Characteristic Type option type of the C1-ADJ-PAY feature configuration. The C1-ACPAY characteristic type is shipped with the product.

Note that you can apply payments on the account level using the single-step approach of the PUPL batch and not using the three-step approach of the PUPL batch. Also, note that multi tender distribution is not supported for the account level payment distribution.