Bill Cycle Change

Changing the billing cycle for an account in OCS.io is designed to accommodate customer-specific needs with flexibility. Initially, accounts are typically configured in a standard "Monthly 1st" cycle running from May 1 to May 31, June 1 to June 30, etc. If a shift to a "Monthly 15th" cycle starting from May 15 is requested, OCS.io offers two distinct methods to manage this change: through a shortened future cycle or an immediate effect change with shorted current cycle.

Firstly, the standard method involves allowing the current cycle to conclude without disruption, followed by a shortened billing period from June 1 to June 14. This approach ensures that all related charges are prorated based on the actual service period used by the customer. Upon completion of this shortened cycle, the account transitions to the "Monthly 15th" cycle, which then runs from June 15 to July 14. All recurring charges and balances are adjusted and applied as usual, with an invoice generated at the cycle’s end on July 15.

Pros of Shortening the Next Bill Cycle: Balances and free units are accurately calculated and allocated for the period in advance, ensuring that customers receive a fair distribution of service benefits for the shortened period.

Cons of Shortening the Next Bill Cycle: The transition process takes longer to complete, as it waits for the current cycle to end before initiating the shortened cycle, potentially delaying the application of new cycle benefits.

Secondly, the immediate change option allows for the billing cycle to be adjusted to align with new start dates as soon as the change is requested via the API. This method is particularly beneficial for addressing urgent customer requirements or contractual changes.

Pros of Immediate Change, Shortening the Current Bill Cycle: Provides a transition with possible immediate effect, allowing for faster implementation of new billing cycles.

Cons of Immediate Change, Shortening the Current Bill Cycle: There is a risk of balances being prematurely exhausted if the proportional calculation of granted units is less than what has already been consumed by the customer, leading to potential customer dissatisfaction or disputes.

Both methods are designed to provide robust flexibility and ensure that billing adjustments meet the dynamic needs of customers. The choice between a shortened cycle and an immediate change depends on the specific requirements and circumstances of each case. These options help maintain accuracy in financial obligations and enhance overall customer satisfaction by aligning billing practices with customer usage patterns and preferences.

Scenarios

There are two primary scenarios for a bill cycle change:

  1. Shortening the Next Bill Cycle: This scenario takes place when the new bill cycle’s start date coincides with the start of the next bill cycle run. In this case, the next bill cycle run is shortened to end on the new bill cycle’s start date.

  2. Immediate Change, Shortening the Current Bill Cycle: This scenario occurs when the new bill cycle’s start date falls within the current bill cycle run. The current bill cycle run is then shortened to end on the new bill cycle’s start date.

Examples

Consider the following examples for each scenario:

Example 1: Shortening the Current Bill Cycle

  • The current bill cycle, "Monthly 1st", runs from the 1st to the end of each month.

  • A new bill cycle, "Monthly 15th", is planned to start on the 15th of each month.

  • The bill cycle change is planned for the 15th of May.

  • The current bill cycle run for May is shortened to run from the 1st to the 14th.

  • An invoice is generated on the 15th of May for the shortened bill cycle run.

  • After the shortened bill cycle run, the planned change is executed, and the new bill cycle on the account is set to "Monthly 15th".

  • The next bill cycle run remains unchanged, running from the 15th of May to the 14th of June.

Bill Cycle Change - Shortening the Current Bill Cycle

Example 2: Immediate Change, Shortening the Next Bill Cycle

  • The current bill cycle, "Monthly 1st", runs from the 1st to the end of each month.

  • A new bill cycle, "Monthly 15th", is planned to start on the 15th of each month.

  • The bill cycle change is planned for the 1st of June.

  • The current bill cycle run for May is not shortened.

  • An invoice is generated on the 1st of June for the entire May bill cycle run.

  • After the May bill cycle run, the planned change is executed, and the new bill cycle on the account is set to "Monthly 15th".

  • The next bill cycle run is shortened, running from the 1st to the 14th of June.

Bill Cycle Change - Immediate Change, Shortening the Current Bill Cycle

Execution of Bill Cycle Change

The execution of a bill cycle change involves the following steps:

  • The change is always executed during the bill cycle run for the current period, which could be a full or shortened period.

  • The new bill cycle is set on the account.

  • A history entry is created with the old bill cycle identification, and the 'valid to' date is set to the 'valid from' date of the planned bill cycle.

  • If there are recurrent services on the account (e.g., recurrent fees), these are updated to reflect the new bill cycle.

Cancellation of Bill Cycle Change

The cancellation of a bill cycle change can be performed before the planned change is executed. Once the change is executed, it cannot be canceled, and the account will transition to the new bill cycle as planned.

Constraints

When planning a bill cycle change, it’s important to note that it is not possible to perform a Preview OCS Invoice or perform Control Group Run for the new billing cycle until the planned change is executed. These constraints exist because the recurrent charges and control groups are not aligned with the new billing cycle until the planned change is executed. Therefore, any attempt to preview the invoice or perform control group run for the new billing cycle during the billing process will not provide accurate results.