Splitting and Distributing the Billing Amount
As a billing analyst, you may want to split and distribute the billing amount of one period across other billing periods. Billing makes it possible by splitting the billing amount of one BSR and auto-distributing it to multiple BSDs across different billing periods.
Prerequisites:
- The price type must be recurring. If the Billing Frequency = One Time, then Proration allowed in One Time Billing = True.
- Split Distribution Method must not be set to None.
- The BSR to be split must be in "Pending Billing" status.
When you initiate the split and distribution process, Billing splits and distributes the amount automatically based on the distribution method selected at the billing preference level. There will be no change in the status of the BSR or BSD. The BSR, original BSD, and the new BSDs that are created have the status of Pending Billing.
To split and distribute the billing amount
- If the Split Distribution Method is set to "Defer To Next Schedule", Billing distributes the amount to the next schedule.
- If the Split Distribution Method is set to "Defer To Last Schedule", Billing distributes the amount to the last schedule.
- If the Split Distribution Method is set to "Spread Across Remainder Periods", Billing splits the amount and distributes it evenly across the remaining schedules.
Example
Suppose you are selling computer servicing with a Total Contract Value of $300,000. The billing term is for 3 months starting from 01 Jan 2024 with a recurring billing schedule. You have configured the order line item with the following details:
|
Order No |
Order Line No |
Product |
Price Type |
Billing Frequency |
Start Date |
End Date |
Quantity |
Per Unit price |
Net Price |
Selling Term |
|---|---|---|---|---|---|---|---|---|---|---|
|
O-001 |
1 |
Service |
Recurring |
Monthly |
01 Jan 2024 |
31 Mar 2024 |
1 |
USD 300,000.00 |
USD 300,000.00 |
1.000 |
Billing generates three BSDs and three BSRs with a fee amount of USD 100,000.00.
|
BSR ID |
Fee Amount |
Start Date |
End Date |
Status |
BSD ID |
Fee Amount |
|---|---|---|---|---|---|---|
|
BSR-1 |
USD 100,000.00 |
01 Jan 2024 |
31 Jan 2024 |
Pending Billing |
BSD-1 |
USD 100,000.00 |
|
BSR-2 |
USD 100,000.00 |
01 Feb 2024 |
29 Feb 2024 |
Pending Billing |
BSD-2 |
USD 100,000.00 |
|
BSR-3 |
USD 100,000.00 |
01 Mar 2024 |
31 Mar 2024 |
Pending Billing |
BSD-3 |
USD 100,000.00 |
You may want to adjust the amount on BSR-1 to USD 50,000.00 and defer the remainder of USD 50,000.00 to the next schedule or spread them across the remainder schedules or to the last schedule. All the BSDs and BSRs have the status of Pending Billing. The examples shown below assume that the BSDs are approved and hence their fee amounts are rolled to respective BSRs. All three scenarios are depicted below:
|
Defer to Next Schedule |
Defer to Last Schedule |
Spread Across Remainder Periods |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|
BSR ID |
Fee Amount |
BSD ID |
Fee Amount |
BSR ID |
Fee Amount |
BSD ID |
Fee Amount |
BSR ID |
Fee Amount |
BSD ID |
Fee Amount |
|
BSR-1 |
USD 50,000.00 |
BSD-1 |
USD 100,000.00 |
BSR-1 |
USD 50,000.00 |
BSD-1 |
USD 100,000.00 |
BSR-1 |
USD 50,000.00 |
BSD-1 |
USD 100,000.00 |
|
BSD-1.1 |
USD -50,000.00 |
BSD-1.1 |
USD -50,000.00 |
BSD-1.1 |
USD -50,000.00 |
||||||
|
BSR-2 |
USD 150,000.00 |
BSD-2 |
USD 100,000.00 |
BSR-2 |
USD 100,000.00 |
BSD-2 |
USD 100,000.00 |
BSR-2 |
USD 125,000.00 |
BSD-2 |
USD 100,000.00 |
|
BSD-2.1 |
USD 50,000.00 |
BSD-2.1 |
USD 25,000.00 |
||||||||
|
BSR-3 |
USD 100,000.00 |
BSD-3 |
USD 100,000.00 |
BSR-3 |
USD 150,000.00 |
BSD-3 |
USD 100,000.00 |
BSR-3 |
USD 125,000.00 |
BSD-3 |
USD 100,000.00 |
|
BSD-3.1 |
USD 50,000.00 |
BSD-3.1 |
USD 25,000.00 |
||||||||
The billing amount is split and distributed to different schedules as per the distribution method selected at the billing preference level.
The source BSRs are not superseded but new BSDs are created under the existing BSRs hence increasing or decreasing the actual fee amount.
