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 split of the billing amount may happen based on “split by specific amounts” or “split by specific percentages”, per the customer's request. After the split, the fee amount is recomputed per the given amounts, or percentages.

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 that span across 2023–24 on  Dec 31, 2023.

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.

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 either One-Time or Recurring.

When you initiate the process, Billing splits a BSR into a number of BSRs and marks the original one as Superseded.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

The corresponding BSD of the original BSR is also marked as superseded and its “actual fee amount” is split as per the split method mentioned in the API.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 a 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 upon clicking a button you can call 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.

Example

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

You want to split BSR-2 which has a fee amount of USD 100 and start date of 01 Feb 2024 and an end date of 29 Feb 2024, into three parts as follows:

After initiating the split process, the engine generates four BSRs (3+1 = 4). As intended, the first three BSRs have a fee amount equal to (USD 30.00 + USD 30.00 + USD 25.00 = USD 85.00), and the fourth BSR is created with a fee of USD 15.00 for the delta amount. The original BSR is marked as superseded and the newly created BSRs have a status of pending billing. 

Similarly, four BSDs are generated. The original BSD is marked as superseded and the newly created BSDs have a category of pending billing. The BSDs reference their corresponding BSRs.