Bill Factor Consideration During Deal Simulation

Earlier, a bill factor specified in a rate component was skipped and not considered for revenue calculation during deal simulation. As a result, the calculated revenue in the deal, product, and division level financial summary was incorrect. This was mainly because we do not maintain the contract details of the accounts in a deal whereas the same is required by the bill factor module. Now, a new session variable named Simulation Switch is introduced. If the Simulation Switch variable in the session is set to Y, the system will skip the contract ID validation so that bill factors are considered for revenue calculation during deal simulation.

While calculating a charge using a rate component whose value source is a bill factor, the system retrieves the characteristic which is mapped to the bill factor from the account or main customer of the account depending on the bill factor's characteristic source. Note that the system considers the characteristic which is effective on the bill segment start date. Depending on the characteristic value, the system derives the bill factor value which is effective on the date that is specified in the Rate Selection Date Option parameter of the C1-BFRDATE algorithm (attached to the bill factor). You can set either of the following values in the Rate Selection Date Option parameter:

  • A - Used when you want to derive the bill factor value which is effective on the accounting date.

  • E - Used when you want to derive the bill factor value which is effective on the bill segment end date.

  • S - Used when you want to derive the bill factor value which is effective on the bill segment start date.

Note: If the C1-BFRDATE algorithm is not attached to the bill factor, the system derives the bill factor value on the pro-rated basis.

However, while calculating revenue in the deal using a rate component whose value source is a bill factor, the system retrieves the characteristic which is mapped to the bill factor from the account or main customer of the account depending on the bill factor's characteristic source. Note that the system considers the characteristic which is effective on the deal creation date. Depending on the characteristic value, the system derives the bill factor value in the following manner:

  • If the Rate Selection Date Option parameter of the C1-BFRDATE algorithm is set to A or S, the system derives the bill factor value which is effective on the deal creation date.

  • If the Rate Selection Date Option parameter of the C1-BFRDATE algorithm is set to E, the system derives the bill factor value which is effective on the deal creation date + deal frequency.

Note: The bill factors where the characteristic source is set to Account, Characteristics Collection, Main Person, or N/A are valid and considered during deal simulation.

While simulating a deal where the simulation type is set to Deal, the system will skip the bill factors where the characteristic source is set to Account (if any used in the rate component). An appropriate warning message will appear for the same in the application log. Ensure that you setup the rate components correctly.