Splitting a Billing Schedule Record

As a billing analyst, you can split the billing amount to adjust the payments. The split of the billing amount happens at the BSR level where you can split a BSR into two or multiple BSRs. The split of the BSR always happens by date, but the billing amount may be split based on the customer's request to split by specific amounts, by specific percentages, or by term. After the split, the fee amount is recomputed per the given amounts, percentages, or terms.

This feature is helpful for splitting a billing schedule due to a change in the billing policy, customer request, change in the tax regime, or due to a direction from regulatory authorities. For example, there is a tax increment from Jan 1, 2024, and your customer wants to split all pending billing schedules from 2023 to 2024 on  Dec 31, 2023.

For more about Billing on the Conga Platform, see  Understanding the Billing Architecture on Conga Platform.

Prerequisites

• The order line item is active.

• The billing summary is set to Contracted. For more information see, Setting Billing Header to Contracted.
• The billing summary is active.
• The Price Type is set to Recurring. 
• If the billing frequency is one-time, proration is set to True.

When you initiate the process, Billing splits a BSR into a number of BSRs and marks the original as Superseded. The new BSRs have a Pending Billing status and the sum of their actual fee amounts is equal to the actual fee amount of the original BSR.

The original BSR's BSD is also marked as superseded and its actual fee amount is split as per the split method mentioned in the API. The new BSDs' default status is set to Approved and their Category is marked as Fee.

You can split multiple BSRs from the same billing header or a different billing header.

To split the billing schedule record

1. Bill a One-Time or Recurring product. Call the Split Billing Schedule API to perform the split operation. 
   

   

   Contact your administrator to make this functionality available in your application so that clicking a button calls the billing service API.

   
   

2. Enter the BSR ID for which you want to perform the split operation.

3. Enter the number of splits you want.
   

   

   The engine creates n + 1 split line items for the number of splits you enter.

   
   

4. Enter values based on the split method you have chosen.
   
   

   1. For the split-by-amount method, enter the split date and split amount for all split line items. The total of the split amount must be less than or equal to the fee amount of the billing schedule you want to split. For example, to split a billing schedule with USD 1000 as a fee amount into four billing schedules, enter 3 as the number of splits. The engine will create n + 1 (3 + 1 = 4) billing schedules. You can split USD 1000 in two different ways:

      1. Less than the total fee amount, that is, USD 1000 = USD 250 (Split 1) + USD 200 (Split 2) + USD 300 (Split 3) = USD 750 then the 4th (n + 1) billing schedule will have USD 250 as the fee amount.
      2. Equal to the total fee amount, that is, USD 1000 = USD 300 (Split 1) + USD 200 (Split 2) + USD 500 (Split 3) = USD 1000 then the 4th (n + 1) billing schedule will have USD 0.00 as the fee amount.

   2. For the split-by-percentage method, enter the split date and split percentage for the split line items. The split percentage total must be less than or equal to 100.

   3. For the split-by-term method, enter the number of splits and the split date. 
      
      

      The application automatically calculates the Term based the split date, number of splits, and the proration calculation method set at the billing preference level. 

Example

If a recurring order line item has the following input parameters. Billing creates one billing header, 12 billing schedule records, and 12 billing schedule details.

Split by Amount

To split BSR-2  by amount, which has a USD 100 fee, into three parts, you provide the value of n = 2. The start date is Feb 1, 2024, and the end date is Feb 29, 2024. You provided two split values as follows:

After initiating the split process, the engine generates three BSRs (2+1 = 3). As intended, the first two BSRs have a fee amount equal to (USD 30.00 + USD 40.00 = USD 70.00), and the third BSR is auto-created with a fee of USD 30.00 for the delta amount. The original BSR and its BSD are marked as superseded and the newly created BSRs and BSDs have a Pending Billing status.  

Split by Percentage

To split BSR-2 by percentage, which has a fee of USD 100 into three parts, you provide the value of n = 2. The start date is 01 Feb 2024 and the end date is 29 Feb 2024. You provided two split values as follows:

After initiating the split process, the engine generates three BSRs (2+1 = 3). As intended, the first two BSRs have a fee amount equal to the percentages mentioned, and the third BSR is auto-created for the delta amount. The original BSR and its BSD are marked as superseded and the newly created BSRs and BSDs have a status of pending billing. 

Split by Term

You want to split BSR-2 by Term, which has a fee of USD 100.00 into three parts, you provide the value of n = 2. The Term for the entire month is considered as 1. The start date is 01 Feb 2024, and the end date is 29 Feb 2024. You provided two split values for the term and split date as follows:

The application automatically calculates the Term.  It is used to calculate the BSD fee amount. To understand how the application calculates the Term and the BSD fee amount, refer to the following table:

After initiating the split process, the application generates three BSRs (2+1 = 3). The original BSR is marked as superseded and the newly created BSRs have a status of pending billing.