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Suppression of obsolete invoices for recurring charges with outstanding billing adjustments for the subsequent billing period in case of early invoice creation.

IP.com Disclosure Number: IPCOM000010845D
Original Publication Date: 2003-Jan-27
Included in the Prior Art Database: 2003-Jan-27

Publishing Venue

IBM

Abstract

In the process of SW order and license management the SAP application is providing billing and invoicing functions. In this standard environment recurring charge SW invoices are created in advance, i.e. the assumption is taken that at time of invoice creation the"final" configuration as basis for the amount for the coming billing period is known. To enable the customer to verify the invoices and a timely balance of the debit, the invoice is provided to the customer x days prior to the invoice effective date. In some business cases, the above mentioned configuration needs to be changed due to customer request. Orders for such configuration changes are placed before the "early creation of the invoice for the next billing period". In such cases it should already been recognized, that the invoice amount of the next billable period, should be different than the initially assumed amount. The business process as is, would create: the "assumed amount" invoice plus one invoice for the new configuration plus a credit for the "assumed amount invoice". Similar to this: in case a customer notifies IBM about terminating a SW license before the "early selection" date, an invoice would still be generated for the new billing period and for the same billing period, a couple of days later, a credit note would be issued. The suggested process improvement includes the advantage that the invoice documents that are sent to the customer reflect the net of all transactions for the new billing period. Customer will receive only an invoice based on the new configuration. 2 documents (in case of configuraiton changes) will be suppressed. In case of Removal the invoice for the next period will be suppressed. That saves administration and mailing costs and increases Customer satisfaction.