Construct

Oracle Revenue Management and Billing provides you with a flexible way to define the billing hierarchy using the construct based billing feature. In a construct, you can include:

• Usage Accounts - A set of usage accounts of different persons whose charges and/or adjustments must be billed through an invoice account. These persons need not belong to the same person hierarchy. The system allows you to select a set of usage accounts based on the criteria using the account selection template. The persons’ and their child persons' usage accounts that meet the specified criteria are included in the construct.

• Billable Charges - A set of billable charges that you want to bill through an invoice account. The system will only consider billable charges of those usage accounts for which the construct is defined. The system allows you to select a set of billable charges based on the criteria using the billable charge selection template.

• Adjustments - A set of adjustments that you want to bill through an invoice account. The system will only consider adjustments of those usage accounts for which the construct is defined. The system allows you to select a set of adjustments based on the criteria using the adjustment selection template.

You can bill the charges and adjustments of usage accounts on the same invoice account. Or, you can bill the charges of usage accounts on one invoice account and the adjustments on another invoice account. Or, you can bill the charges or adjustments of the usage accounts on more than one invoice account. You can define different types of constructs. At present, the system supports only invoice and settlement construct. Here, settlement includes receivables and payables.

One usage account can belong to only one active construct and not to multiple active constructs at the same time. The system also allows you to exclude some usage accounts when you do not want to include all usage accounts that satisfy the criteria in the construct. While defining a construct, you can use an existing invoice account. The contracts for the invoice account are created when you activate the construct. One contract is created for every target contract type set on usage accounts' contracts’ contract type.

You can use a construct during the construct based billing process when the construct is in the Active status. The following batches are designed to support the construct based billing process:

• Construct Based - Pending Bill Generation (BILLOPEN) - This batch is used to generate pending bills for accounts that meet the criteria.

• Construct Based - Bill Segment Generation (BSGENREG) - This batch is used to generate the bill segments on the pending bills.

• Construct Based - Bill Completion (POSTPROC) - This batch is used to generate post processing bill segments during the bill completion process. It changes the status of the bill to Complete.

During the bill generation process, all accounts that meet the criteria are considered for billing. These accounts may be usage or invoice accounts. All billable charges (with the Adhoc flag set to No) whose start date is earlier than or equal to the batch business date are considered during bill segment generation. If a billable charge satisfies the rule defined on any active construct, the bill segment is generated on the respective invoice account. And, if a billable charge does not satisfy the rule defined on any active construct, the bill segment is generated on the usage account. The post-processing bill segments, if any, are generated on the invoice or usage account depending on the type of price assignment.

For more information on how to setup the construct based billing process, refer to Prerequisites.

Related Topics

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