Automatic Refund

Oracle Revenue Management and Billing enables you to create automatic refunds when a credit bill or a credit adjustment is created or when there is an overpayment. A new algorithm spot named Immediate Refund Creation is introduced in the Division screen. A new algorithm type named C1-IMREFCRET is introduced in this release. You can create an algorithm using the C1-IMREFCRET algorithm type and attach it to the Immediate Refund Creation algorithm spot of the required divisions.

The following table lists the fields which are newly introduced in the respective screens to implement the Automatic Refund feature:
Screen Tab Field Name Field Description
Account Main Immediate Refund Used to indicate whether you want to process immediate refund for the account.
Auto Pay Auto Pay Usage Used to indicate whether the automatic payment option is available for automatic credit or debit, or for both automatic credit and debit.
Person Main Immediate Refund Used to indicate whether you want to process immediate refund for the person's accounts.
Customer Class Controls Immediate Refund Used to indicate whether you want to process immediate refund for the accounts which belong to the customer class.
Division Main Direct Credit Refund Used to indicate whether you want to process immediate refund for the accounts belonging to the division through the direct credit mode.
Immediate Refund Used to indicate whether you want to process immediate refund for the accounts belonging to the division. This field is enabled when the Direct Credit Refund or A/P Request Fund option is selected.
A/P Request Fund Used to indicate whether you want to process immediate refund for the accounts belonging to the division through the A/P request mode.
Adjustment Type Main Refund Option Used to indicate whether you want to use the adjustment type for creating direct credit refund adjustments or A/P request refund adjustments.
Auto Pay Instruction Auto Pay Auto Pay Usage Used to indicate whether the automatic payment instruction is available for automatic credit or debit, or for both automatic credit and debit.
Auto Pay Route Type - Refund Auto Pay Date Calculation Algorithm Used to calculate the extract date for an automatic refund clearing record in the CI_​APAY_​CLR_​STG table.
Note: While creating a person through a customer registration object, you can also set the immediate refund option for the person. Similarly, while creating an account through a customer registration object, you can also set the immediate refund and auto pay usage options for the account.

Now, when a credit bill is completed, when a credit adjustment is frozen, and when an overpayment is frozen, the system checks whether an algorithm is attached to the Immediate Refund Creation algorithm spot of the respective account's division. If an algorithm created using the C1-IMREFCRET algorithm type is attached to the Immediate Refund Creation algorithm spot of the division, the system checks whether the Immediate Refund on Credit Bill, Immediate Refund on Dispute/Credit Adjustments, or Immediate Refund on Overpayment parameter in the algorithm is set to Y depending on whether it is a credit bill, credit adjustment, or overpayment.

If the respective parameter is set to Y, the system checks whether the Immediate Refund option is selected at either of the following levels - Account, Person, Customer Class, or Division. If so, the system checks whether the Direct Credit Refund option of the division is set to Y and the automatic payment option for automatic credit or for automatic credit and debit exists for the account. If so, the system creates a refund request using the direct credit refund request type which is specified in the C1-IMREFCRET algorithm. However, if the Direct Credit Refund option of the division is set to N and the A/P Request Fund option of the division is set to Y, the system creates a refund request using the A/P request refund request type which is specified in the C1-IMREFCRET algorithm. In addition, if the Direct Credit Refund option of the division is set to Y, the A/P Request Fund option of the division is set to Y, and the automatic payment option for automatic credit or for automatic credit and debit does not exist for the account, the system creates a refund request using the A/P request refund request type which is specified in the C1-IMREFCRET algorithm.

If the Direct Credit Refund option of the division is set to Y, the A/P Request Fund option of the division is set to N, and the automatic payment option for automatic credit or for automatic credit and debit does not exist for the account, the system creates a transfer adjustment using the transfer adjustment type which is specified in the C1-IMREFCRET algorithm. Also, if the Direct Credit Refund option of the division is set to N and the A/P Request Fund option of the division is set to N, the system creates a transfer adjustment using the transfer adjustment type which is specified in the C1-IMREFCRET algorithm.

In addition, if the Immediate Refund option is not selected at any of the following levels - Account, Person, Customer Class, or Division, the system creates a transfer adjustment using the transfer adjustment type which is specified in the C1-IMREFCRET algorithm. Note that these transfer adjustments are created on the excess credit contract of the account. If the excess credit contract is not available for the account, the system creates an excess credit contract for the account using the overpayment contract type which is specified in the C1-IMREFCRET algorithm.

The refund requests are created in the Processed status. While creating a direct access refund request type, you need to ensure that you specify an adjustment type where the refund option is set to Direct Credit. However, while creating an A/P request refund request type, you need to ensure that you specify an adjustment type where the refund option is set to A/P Payment. The system will then accordingly create the direct credit or A/P request refund adjustments when the refund request is processed. If the Adjustment Freeze Switch parameter in the C1-IMREFCRET algorithm is set to Y, the transfer and refund adjustments are created in the Frozen status.

When a credit bill is canceled for which either the refund adjustments or payments are created, the system does the following:

  • Creates the transfer adjustments on the excess credit contract of the account

Note: The system considers the transfer adjustment type and overpayment contract type specified in the C1-TRNADJEX algorithm which is attached to the account's customer class.

The APAYCRET batch is enhanced to support the new automatic refund process. Now, if the automatic payment amount stamped against a bill is in credit and the auto pay usage flag is set to Credit or Credit and Debit, the batch creates a refund request against the bill. Here, in addition, if the refund option is set to Direct Credit in the respective refund adjustment type, the batch creates a clearing record for the automatic refund in the CI_​ADJ_​CLR_​STG table. However, if the refund option is set to A/P Request in the respective refund adjustment type, the batch creates an A/P request entry for the automatic refund in the CI_​ADJ_​APREQ table.

Parent Topic: Oracle Revenue Management and Billing Financial Services Business Processes