Refund/Write Off Adjustment at Bill Level

Until now, you were able to create the refund/write off request for a bill or bill line item (i.e. bill segment or adjustment) of an account. On processing the refund/write off request, the system used to create refund/write off adjustment against the bill line item irrespective of whether the refund/write off is done at the bill or bill line item level. There was a requirement wherein the system should allow to create the refund/write off adjustment against the bill and not against the bill line items when the refund/write off is done at the bill level.

Now, Oracle Revenue Management and Billing enables you to create a refund/write off adjustment at the bill level. A new field named Adjustment Level is available while defining a refund/write off request. It allows you to control how the refund/write off adjustment should be created for the refund/write off request. It supports the following values:

  • Account - Used when you want to create the refund/write off request at the account level. Here, the refund/write off adjustment is created against the netting contract of the account. This option is only applicable for the health insurance domain.

  • Bill - Used when you want to create the refund/write off request for a bill. Here, the refund/write off adjustment is created against the netting contract of the account. This option is only applicable for the financial services domain.

  • Segment - Used when you want to create the refund/write off request for a bill, bill segment, adjustment, or payment of an account. Here, the refund/write off adjustment is created against the bill segment, adjustment, or payment segment, respectively. If you select this option, the system behaves in the traditional manner.

By default, the adjustment level is set to Segment. If you select the Bill option from the Adjustment Level list, the system checks the account balance while creating the refund/write off request. If the account balance is zero, the system throws an appropriate error message and does not allow you to create the refund/write off request for the account. However, if the account balance is in credit, the system allows you to create a refund request for the account. Similarly, if the account balance is in debit, the system allows you to create a write off request for the account.

Note: The Payments and Adjustments tab does not appear in the Refund Request screen when the adjustment level is set to Bill in the refund request.

Before creating the refund/write off request where the adjustment level is set to Bill, you need to do the following:

  • Attach the C1-NTACBAL algorithm to the Netting Account Balance system event in the Algorithms tab of the Installation Options - Framework screen

  • Set the netting contract type on the respective refund/write off request type

The system invokes the C1-NTACBAL algorithm while processing the refund/write off request where the adjustment level is set to Bill. The C1-NTACBAL algorithm creates transfer adjustments on the netting contract of the account. The transfer adjustment creation process slightly varies depending on the adjustment level that is selected while defining a refund/write off request.

If the adjustment level is set to Bill, then the system checks whether a netting contract created using the netting contract type (specified in the refund/write off request type) exists for the account and its contract balance is equal to zero. If both the conditions are met, the system considers the unpaid bill segments and adjustments of the bill and then creates a transfer adjustment against each of them on the netting contract. However, if the netting contract does not exist for the account, then the system does the following:

  1. Creates a netting contract using the netting contract type specified in the refund/write off request type

  2. Considers the unpaid bill segments and adjustments of the bill and then creates a transfer adjustment against each of them on the netting contract

And, if the netting contract exists for the account, but its contract balance is not equal to zero, the system throws an appropriate error message on the user interface.

On voiding a refund request where the adjustment level is set to Bill, the system cancels the transfer adjustments and refund adjustment on the netting contract of the account. And, on canceling a write off request where the adjustment level is set to Bill, the system cancels the transfer adjustments and write off adjustment on the netting contract of the account.