Anda di halaman 1dari 9

Retro Billing Functional Flow:

======================
Retroactive billing (in short Retro Billing) is applicable to industries that buy comodities, which may
experience significant price fluctuations. This feature is extensively used in automotive industry where
price fluctuations are highly prevalent.

It is a common business practice for suppliers to have contracts with customers that require them to make
changes to the amounts charged on already invoiced orders. Prices on a purchase order or blanket order
can change because a commodity may sharply increase or decrease in price. Often the change must be
retroactive to a particular date, and applies even to order lines that have already shipped and been invoiced.
Retroactive Billing in Oracle Order Management automates the process of creating these credits and debits
When there is a price change after invoicing.

Retrobilling can be considered an option during the following situation.


When a supplier sold some goods to a customer in the last quarter. Due to this selling there were around 50
invoices generated in the last quarter. However in the current quarter there is an agreement between the
supplier and the customer that the customer will be given a discount of 10% on all the old invoices
generated in the last quarter or there is an decrease in the price due to which the old invoices generated in
the last quarter need to be adjusted by creating a credit memo.

Setup
The setup has the following optional and mandatory steps

1. Define unique reason code for credits (optional)


This step is optional, but it’s a good idea to create a credit memo reason code, so that you can query
the credit lines and credits in Receivables by this reason code. See screen shot below.
N-> Receivables-> Setup->System-> Quickcodes-> Receivables

2. Set OM parameters for retrobilling


The three Retrobilling parameters have been grouped under the category called
‘Retrobilling Parameters’. Query up this parameter and then set the values as shown in the screen shot.
N->Setup-> System parameters-> Values

Save your work.


Typical retrobilling scenarios

The following retrobilling scenarios were created to understand retrobilling feature in typical business
scenarios.

Scenario 1: Creating Credit memo for a Customer due to Item List Price Drop
Scenario 2: Creating an invoice (debit memo) for a customer due to Item List Price Increase

Scenario 1: Process flow

1. Customer business world has placed an order. The order is created in Order Management with
10% discount applied via the automatic modifier. The original price got changed from $1000 to
$900.
2. Book the order. Pickconfirm and ship the order, run ITS and run workflow background process to
autoinvoice the order.

3. Now go and change the price. This is done here by changing the modifier value from 10% to 15%
4. The price change resulted in the price getting reduced from $900 to $850.
5. Now go and find the order lines eligible to retrobill using the Retrobill Organizer.
N-> Orders, Returns -> Retrobilling-> Retrobill Organizer

6. Perform Retrobilling Preview


Running retrobill in Preview mode will run the Retrobilling Engine and create orders in an
entered status. The orders will be created using the Order Type indicated in the Order Type
parameter. Any credit lines created will use the Reason Code indicated in the Reason parameter.
Any new invoice lines created do not carry a reason code. Click OK to run the request, either
synchronously if you selected online button or as a concurrent request if you selected Concurrent.
This creates a retrobill order for the delta in the changed price and the original price ($900~$850=$50)

7. View Retrobilling Report.


This report gives the output of lines and orders that are eligible to be retrobilled, as well as the
amounts to be retrobilled on each line. The output should look similar to the RLM Retrobilling
Report below.

8. Query Retrobilling Request


If you’ve run the retrobilling preview request in concurrent mode, you will want to go back
Later and query that request to see what happened. This is what the third tab on the
Retrobilling Organizer can help you do. You can query Retrobill Requests by name, or
By customer or item or request dates.
9. Update proposed retrobilling quantities as requried.

10. Execute Retrobilling Request


Running the retrobilling request in Execute mode will book the orders.
If you run Execute without running Preview first, the orders will be created and booked in the
same run.
One can see the retrobill order details, by querying the original sales order and on the line items
Tab by going to actions -> additional line information-> Retrobilling tab to see retrobill order
Details.
Scenario 2: Process flow

1. Create an order, pickrelease and ship confirm the order and run workflow background engine to
run auto invoice for the same.

2. Now go and increase the price of the item invoiced in step1 from $2000 to $3000
(Price changes are done by end dating the list line for the item and adding a new list line for item
RBITEM02)

3. From the retrobill organizer, find the order lines eligible to retrobill
4. Perform Retrobilling Preview
The new retrobill order is created for $1000(the delta of changed price and the original price)

5. View Retrobilling Report

6. Query Retrobilling Request

In the retrobilling organizer go to Retrobill Request and Query the request created earlier in
preview mode. Now open the request and Run the request in execute mode.
7. Update proposed retrobilling quantities as requried
8. The retrobill order details can be viewed, by querying the original sales order and on the line items
tab by going to actions -> additional line information->Retrobilling tab.