Overview
The article describes how to set up PPM Recurring Billing. Recurring billing allows users to set up a contract in Oracle for bills to automatically generate per a designated Bill Cycle frequency; this will auto-create an Event to trigger the Invoice as per the timing set in the Billing Cycle. This is an ideal solution for regular, fixed-price "no-touch" invoicing to Customers.
Essential Information
Recommendations:
- One line per contract.
- Do not run the Generate Invoices job, allow the system to do this.
- Limit creation and inclusion of ad hoc events;
- If ad hoc events are needed, allow the system to pick up the ad hoc event and combine it with the next recurring event.
- If many ad hoc events are needed, create a separate contract.
- When manually creating an Event (ad hoc to recurring contract or regular), do not use a Recurring Event Type.
Nuances:
- Recurring contract will generate, delete, and recreate Events based on the Bill Cycle if the invoice is in Draft status.
- Recommendation: if Bill Cycle is set to Daily, user needs to submit the draft invoice on a daily basis to allow a new Event to be created the next day.
- Invoices will also be deleted and recreated according to the Bill Cycle.
- The system will create one Event for the recurring Bill Plan and one Event for the recurring Revenue Plan.
- This will impact your view of Manage Events; twice the number of Events will be displayed than non recurring Events with Billing and Revenue enabled.
- User would identify "pairs" based on the Event Type and Completion Date.
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- Only one Invoice will be generated per Event as per the recurring Bill Plan Cycle setup.
- Recurring billing will stop under the following limitation.
- Once the Contract End Date is met.
Next Steps
Amending a Contract for Recurring Billing
1. Log into Oracle Financials Cloud (OFC) using single sign-on.
2. Select Projects and Awards, then click on Contracts.
3. Search the desired contract and open by selecting the contract Number hyperlink.
4. Open the Actions drop-down menu in the upper right-hand corner and select Amend.
5. Enter the Amendment Effective Date (today's date or contract End Date if already passed).
6. Scroll down to the Additional Information section, and enter the desired amount in the Recurring Invoice Amount field.
7. Select the Billing tab.
8. Under the Bill Plans section, open the Bill Plan by selecting the hyperlink.
9. Change the Method Name field to Recurring Billing.
10. In the Invoice Information section, change the Billing Cycle to the desired frequency for how often the system will auto-generate the Event and then auto-generate the corresponding Invoice.
11. Save and Close
12. Under the Revenue Plans section, open the Revenue Plan by selecting the hyperlink.
13. Change the Method Name field to Recurring Revenue.
14. Save and Close
15. Submit for approval, then Save and Close.
Crediting an Event
1. In the Oracle Home page, select Projects and Awards, then click on Contract Invoices.
2. Open the right-hand task pane, and under Review and Adjust, select Manage Events.
3. Under Search Results, select the + sign.
4. Enter the following information:
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- Contract Number
- Contract Line
- Event Type: Milestone
- Description: "Credit Memo"
- Completion Date (today's date)
- Amount in Bill Transaction Currency (negative amount to offset the next invoice).
- Organization
- Project Name
- Transaction Task Name
5. Save and Close
FAQ's
Q: What if the recurring amount changes after a period of time? (e.g., Year 2 should be 10% more than Year 1 amount)
A: Amend the contract when the recurring invoice amount should be changed, i.e., at the end of Year 1.
Q: How do I initiate a credit memo for recurring billing?
A: Users are unable to edit recurring events, so users need to create an ad hoc event with the credit as a negative amount. Users can run Generate Invoices job or allow the scheduled job to run, which will pick up the negative event and will combine it with the Recurring Amount, creating an invoice for the difference.
Q: What is the best practice for submitting recurring Draft Invoices?
A: Users should submit the Draft Invoice between the time it is created and before the next recurring Event is to be created.
- [Internal]: If the hard limit has been met, the system will continue to create Billing and Revenue Events based on the Bill Cycle, but no invoices.