1. Using Inventory Management
  2. How Consumption Advice Generation Frequency Is Calculated

How Consumption Advice Generation Frequency Is Calculated

The consumption advice generation frequency indicates the frequency at which the Create Consumption Advice process runs to consolidate consumption transactions for a defined period of time.

Conditions That Affect the Consumption Advice Generation Frequency

Two factors affect the consumption advice generation frequency:

  • Consumption advice frequency: Daily, Weekly, or Monthly

  • Billing cycle closing date

How Consumption Advice Generation Frequency Is Calculated

The consumption advice generation frequency is determined by adding the consumption advice frequency (Daily, Weekly, or Monthly) to the closing date of the billing cycle.

In addition, a consumption advice for item consumption is generated only after the billing cycle has ended (the closing date has passed). Each consumption advice reports transactions that were created in that billing period only.

Each time the consumption advice is generated, the billing cycle closing date resets (moves forward) for the next billing cycle.

Example 1

If you set the consumption advice frequency to Weekly and the billing cycle closing date to November 7, 2014, then you produce the following billing periods:

  • November 1, 2014 - November 7, 2014

  • November 8, 2014 - November 14, 2014

  • November 15, 2014 - November 21, 2104

Here's how the Create Consumption Advice process runs on the following dates:

  • November 2, 2014: no consumption advice is generated.

  • November 7, 2014: consumption advice is generated and next closing date is set to November 14, 2014.

  • November 10, 2014: no consumption advice is generated.

  • November 14, 2014: consumption advice is generated and next closing date is set to November 21, 2014.

Example 2

If you set the consumption advice frequency to Monthly and the billing cycle closing date to January 10, 2023, then you produce the following billing periods:

  • January 10, 2023 - February 10, 2023

  • February 11, 2023 - March 10, 2023

  • March 11, 2023 - April 10, 2023

Here's how the Create Consumption Advice process runs on the following dates:

  • January 4, 2023: no consumption advice is generated.

  • January 10, 2023: consumption advice is generated and next closing date is set to February 10, 2023.

  • January 30, 2023: no consumption advice is generated.

  • February 10, 2023: consumption advice is generated and next closing date is set to March 10, 2023.

Since the number of days can vary from month to month, such as 28, 30, and 31, the next billing cycle close date is updated as follows.

  • If the billing cycle close date is January 31, 2023, then the next billing cycle close date is updated to February 28, 2023, the last day of the month.
  • If the billing cycle close date is April 30, 2023, then the next billing cycle close date is updated to May 31, 2023, the last day of the month.