Create OCS Invoice
Within this chapter, you will gain a comprehensive understanding of the intricate procedures that lead to the creation of an OCS Invoice in the system. We will explore the step-by-step journey encompassing data extraction, aggregation, pro-ration, fee and discount applications, tax calculations, and the finalization of the invoice. By delving into these processes, you will grasp the underlying mechanisms that drive the accuracy and transparency of the OCS Invoice generation, ensuring that all relevant charges, exemptions, and adjustments are meticulously accounted for.
Process Overview
Following diagram illustrates the Calculate OCS Invoice for Payment Responsible Account process within OCS.io:
The Calculate OCS Invoice for Payment Responsible Account process within OCS.io is responsible for generating invoices for the specified accounts. This comprehensive process ensures accurate and efficient invoicing by considering various levels of hierarchy and associated elements.
Calculate Account
In the first step, the Calculate Account process is executed. This process involves several stages, starting with the accounts belonging to the Payer, which includes the Payment Responsible Account. The process extends to include all subordinated accounts if a hierarchy on the account level is configured.
Within each account iteration, the process traverses through all subscribers associated with the account. For each subscriber, the Calculate Subscriber process is executed. This step ensures that subscriber-specific billing details are accurately calculated and considered.
Additionally, the process iterates over all Offer Subscriptions associated with the account. For each Offer Subscription, the Calculate Subscription process is initiated. This step is crucial for generating precise charges and details related to the specific subscriptions.
Apply Pro-Rate
The Application of the Pro-Rate mechanism is a crucial step in the Account billing process. This mechanism operates at the Account level, enabling precise billing calculations based on historical data. During this step, the system retrieves the lifecycle stage history of the Account and computes the ratio between the duration of the chargeable period and the length of the billing cycle for which the invoice is being generated.
The determination of whether a state is eligible for charges hinges on the associated State Reason at each State of the Account. This allows for fine-tuned control over which states contribute to the billing calculations.
Furthermore, the system incorporates an adaptable mechanism that can account for changes occurring within the same day, depending on the specific configuration. For instance, if an Account undergoes a Suspended state and is subsequently Re-Activated on the same day, the Suspension state is excluded from consideration, and the entire day is regarded as charged.
Process Events on Account
In the subsequent phase, the operation Process Events on Account Level takes center stage. This pivotal step encompasses a comprehensive retrieval and processing of two types of events, namely Chargeable Events and Aggregated Events, each operating at the Account level.
At the Account level, the majority of events are categorized as One-Time fees, distinct from those assigned to an Offer Subscription. These events encompass specific transactions and activities that pertain to the Account, encapsulating various one-off charges and occurrences.
First, the Chargeable Events are meticulously collected and scrutinized. These events encapsulate critical information about various activities and transactions associated with the Account. The system adeptly evaluates the significance of each chargeable event and meticulously integrates it into the invoicing process.
Concurrently, the Aggregated Events are summoned forth. These events provide a high-level overview, combining related activities into consolidated records that are more manageable and informative. The system deftly processes these aggregated events, ensuring their seamless integration into the overall invoicing schema.
Summarize Account
Subsequently, the process advances to the summarization of all charges at the Account level. This aggregation process is guided by diverse criteria, with a notable focus on the Charging Class classification. The outcome of this step entails comprehensive summaries organized according to these charging classifications. These summarized charges will be pivotal in the subsequent stages of the process, where they will serve as the foundation for the application of fees or discounts at specific levels.
Apply Billing Discount(s) on Account
Continuing with the process, the next step involves the implementation of Billing Discounts on Account. These discounts are applied based on the summaries generated from the categorization according to Charging Class.
The application of discounts follows a well-organized sequence:
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Priority-Based Implementation: Discounts are applied based on their designated Priority level. This ensures that higher-priority discounts take precedence over others in cases where multiple discounts might be applicable.
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Order of Application: If there are multiple discounts sharing the same Priority, a hierarchical order of implementation is followed. The system applies the earliest registered discounts before proceeding to the ones that were added at a later stage. This systematic order guarantees consistency and fairness in discount application.
In addition, the Billing Discount application incorporates the consideration of Pro-Rate calculations performed earlier in the process, if configured to do so. This signifies that in certain scenarios, such as for both Absolute Billing Discounts or Percentage Billing Discount, a fraction of the discount is applied. This fraction is determined by the proportion of the Account’s chargeable duration in relation to the complete billing cycle. For Percentage Billing Discount, the discount may be calculated based on the Catalogue Price, so the Pro-Rate of the discount value in Percentage is taken into account.
Important to note that events coming to discount calculation are always aggregated. This means that multiple events of the same offer are combined and treated as a single event during the discount calculation process.
Apply Billing Fee(s) on Account
Continuing further, the subsequent phase encompasses the execution of Billing Fees on Account. These fees are implemented based on the summaries established from the categorization according to Charging Class.
The application of fees follows a structured sequence:
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Priority-Based Implementation: Fees are applied based on their designated Priority level. This ensures that higher-priority fees take precedence over others in cases where multiple fees might be applicable.
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Order of Application: If there are multiple fees sharing the same Priority, a hierarchical order of implementation is adhered to. The system applies the earliest registered fees first before proceeding to the ones that were added later. This systematic order ensures a consistent and systematic application of fees.
In addition, the Billing Fee application incorporates the consideration of Pro-Rate calculations performed earlier in the process, if configured to do so. This signifies that in certain scenarios, such as for Minimal Commitment or Maximal Spent, a fraction of the fee is applied. This fraction is determined by the proportion of the Account’s chargeable duration in relation to the complete billing cycle.
Calculate Subscriber
The Calculate Subscriber process is fundamental to the comprehensive billing cycle. It is executed for each Subscriber associated with an Account and is invoked from the Calculate Account process.
For every Subscriber iteration within an Account, the process further entails an iteration over all Offer Subscriptions associated with that Subscriber. For each Offer Subscription, the Calculate Subscription process is invoked. This systematic approach ensures that all associated Offer Subscriptions are accurately considered in the billing calculations.
Apply Pro-Rate
Pro-Rate mechanism remain central to Subscriber billing accuracy, driven by historical data. Lifecycle stage histories and chargeable periods are retrieved for precise billing. The applicability of a state for charges is determined by State Reasons associated with each Subscriber state. The system’s adaptability even extends to changes occurring within the same day.
Process Events on Subscriber
Similar to the Account phase, this step processes Chargeable and Aggregated Events at the Subscriber level.
Summarize Subscriber
Summarization of charges at the Subscriber level revolves around Charging Class, serving as a critical foundation for fee and discount applications.
Calculate Subscription
The Calculate Subscription process is intricately woven into the billing cycle to ascertain accurate billing for each Offer Subscription. This process is invoked for every Offer Subscription associated with an Account or with a Subscriber and is called from the Calculate Account / Calculate Subscriber process.
Within the Calculate Subscription process, the system diligently evaluates and computes various elements crucial to the billing calculation. It factors in the duration of Subscription activity, applies prorated adjustments if applicable, processes chargeable and aggregated events, and considers billing discounts and fees unique to the Subscription.
Apply Pro-Rate
Pro-Rate mechanism remain central to Subscription billing accuracy, driven by historical data. Lifecycle stage histories and chargeable periods are retrieved for precise billing. The applicability of a state for charges is determined by State Reasons associated with each Subscription state. The system’s adaptability even extends to changes occurring within the same day.
Process Events on Subscription
Similar to the Account phase, this step processes Chargeable and Aggregated Events at the Subscription level.
Summarize Subscription
Summarization of charges at the Subscription level revolves around Charging Class, serving as a critical foundation for fee and discount applications.
Calculate Invoice
Calculate Invoice
Summarize Invoice
Summarization of charges at the Invoice level revolves around Charging Class, serving as a critical foundation for fee and discount applications.
Apply Billing Discount(s) on Invoice
Similar to the Account phase, this step applies Billing Discounts on Invoice level.
Apply Billing Fee(s) on Invoice
Similar to the Account phase, this step applies Billing Fees on Invoice level.
Apply Tax Exemption
The Tax Exemption process plays a pivotal role in identifying instances where an Invoice is exempt from taxes. This critical determination is made based on specific conditions that ensure tax exclusions are accurately applied.
Tax exemptions are applied in the following cases:
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Payer Tax Exemption: If the Payer is designated as a subject of tax exemption, the entire Invoice is flagged for tax exemption. In this scenario, taxes are not factored into the calculations, and all charges are presented excluding any applicable taxes.
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Tax Recapitulation Exemption: If the tax recapitulation section of the Invoice contains one or more Tax categories that are marked as subjects of tax exemption, the Invoice is similarly designated as tax exempt. As a result, the tax calculation is bypassed, and all charges are displayed without tax considerations.
Calculate Tax(es)
In the Calculate Tax(es) step, the calculation of taxes based on configurable Tax Categories takes place. This crucial process involves the comprehensive summation of charges, discounts, and fees, resulting in a consolidated calculation for each tax category. This calculation is then applied to the respective charges, ensuring accurate and compliant tax assessment for the given transaction.
Additionally, in cases where a tax exemption is applicable, the entire or a portion of the tax calculation may be rejected, as the exemption criteria dictate. This mechanism guarantees that the tax assessment remains aligned with the regulatory requirements and accurately reflects the tax-exempt status of specific transactions.
Finalize Invoice
In the subsequent step of Invoice Finalization, a precise transformation occurs where all components of the invoice are systematically merged and seamlessly formatted into the designated internal structure. This careful formatting process ensures that each aspect of the invoice aligns harmoniously, creating a coherent representation of the financial transactions.
Moreover, this phase also encompasses the critical calculation of aggregates. These aggregates serve as the cornerstone for accurate financial reporting and analysis. By consolidating the calculated charges, discounts, and fees, these aggregates provide a comprehensive view of the financial implications of the invoice. This comprehensive financial overview is then channeled into the generation of General Ledger reports, which serve as a detailed record of the financial transactions.
Store Invoice Internal
If the Create OCS Invoice process is not conducted under the Control Group or Preview mode, a pivotal phase unfolds where the Invoice is internally stored. This storage encapsulates not only the meticulously aggregated components of the invoice but also the essential aggregates that hold pivotal financial insights. These aggregates are strategically preserved to empower the subsequent General Ledger reporting process.
Calculate Document
Calculate Document is a vital sub-process within the overarching Create OCS Invoice process. This step holds the responsibility of finalizing an OCS Invoice by integrating Due Documents or Over Payments into consideration. The primary objective of this phase is the calculation of the Invoiced Amount. Moreover, this step is instrumental in generating essential Document attributes such as Document Number, Payment references, and more. It plays a pivotal role in ensuring the accuracy and completeness of the invoice, ensuring that all pertinent information is appropriately integrated before the final invoice is presented.
Apply Due Documents
In a configuration where such action is specified, the incorporation of Due Documents into the Document creation process is undertaken.
In this scenario, the system meticulously evaluates all Documents bearing a past Due Date, with special attention directed toward those whose Due Amount surpasses a predetermined threshold. The culmination of this assessment leads to the inclusion of these identified Due Documents within the internal format established by the process. Additionally, to ensure complete financial transparency, the aggregated Sum of Due Amounts becomes an integral part of the Total Invoiced Amount.
Apply Over Payments
In instances where the configuration dictates, the potential integration of Over Payments into the Document creation process is facilitated.
Under this arrangement, meticulous scrutiny is directed toward all Incoming Payments characterized by an Open Amount that surpasses a predefined threshold. This evaluation culminates in the incorporation of these eligible Over Payments into the internal format meticulously devised by the process. This strategic inclusion also leads to the deduction of the aggregated Sum of Open Amounts from the Total Invoiced Amount, contributing to a more accurate representation of the overall financial picture.
Calculate Invoiced Amount
In one of the final steps, the Calculation of Invoiced Amount takes place. This integral process involves the fusion of the calculated Invoice Amount with the inclusion of Due Documents, and subsequently adjusting for Over Payments. The resultant Invoiced Amount is a comprehensive reflection of the financial expectation. This value finds its manifestation on the generated Invoice, serving as a transparent representation of the anticipated payment sum. This holistic approach towards Invoiced Amount computation encapsulates not only the primary charges but also incorporates any relevant adjustments stemming from Due Documents and Over Payments, ensuring a comprehensive and accurate reflection of the financial obligations.
Finalize Document
If the Create OCS Invoice process is not conducted under the Control Group or Preview mode, the Finalize Document process assigns a unique Document Number from the designated sequence. Moreover, crucial information such as Payment References, Document Due Date, Tax Realization Date, and Recommended Payment Date is meticulously computed and allocated to the Invoice. This comprehensive array of attributes further enriches the internal structure of the Invoice. Once these attributes are integrated, the entire Document is primed, complete with all necessary details, and stands prepared to be stored and seamlessly transmitted to other systems for subsequent processing.