Rounding Schedule for Fee Amount

This feature rounds the decimal balances arising from proration in the very first billing schedule record. This method is used for a recurring order line item applicable for a new sale transaction.

To know how Billing works on the Conga Platform, it is recommended to familiarize yourself with its architecture mentioned in Understanding the Billing Architecture on Conga Platform.

Prerequisite

• An order line item is created for a recurring product.

• The order line item is active.

• The Fee Amount Rounding Schedule is set to either First or Last.

When you call the Initiate Billing API for a recurring order line item with OrderLineItemIds and ReadyForBillingDate as the payload, it starts processing the OLI. It creates one billing header, a cascade of billing schedule records, and billing schedule details depending on the term and billing frequency of the order line item. The billing schedule records are created with "Pending Billing" status. You can see that by virtue of the Fee Amount Rounding Schedule setting being defined, billing rounds the decimal values in the first billing schedule. 

Let's understand this feature with the help of an example.

Example

Suppose you are selling computer servicing with a Total Contract Value of $1000. The billing term is for 3 months starting from 01 Jan 2024  with a recurring billing schedule. Billing creates three billing 
schedules. The round-offs are adjusted in the first or last billing schedule depending on whether the Fee Amount Rounding Schedule is set to First or Last.

Scenario 1:

Suppose you have set the Fee Amount Rounding Schedule to First, and configured a recurring order line item with the following details:

Contact your admin will make this functionality available in your application so that upon clicking a button you should be able to call the billing service API and get the result as shown. The API creates one Billing Header, three Billing Schedule Records, and three Billing Schedule Details.

The billing header uses the information from the order line item and contains the following data. Depending upon the information given for the pricing source, It will pick up the pricing information from the order line item or the asset line item. The Billing Header shows:

Three Billing Schedule Records are generated showing the following output:

The Actual Fee Amount shown in the billing schedule record is the amount that is billed to the customer. 

Billing Schedule Details show the following information:

Since the Fee Amount Rounding Schedule is set to First, decimal rounding is done in the first record.

Scenario 2:

Suppose you have set the Fee Amount Rounding Schedule to Last, and configured a recurring order line item with the same details as above.

Three Billing Schedule Records are generated showing the following output:

The Actual Fee Amount shown in the billing schedule record is the amount that is billed to the customer. 

Billing Schedule Details show the following information:

Since the Fee Amount Rounding Schedule is set to Last, the last record has rounded decimal values.