Calendar month billing for silent renewals
Hi
We are currently implementing service contracts and we are facing the following challenge. A lot of contracts do not start at the first day of the month. However these customers are invoiced monthly or bi-monthly following calendar months. As a result the first and the last billing period are "broken" periods. See example below:
Contract with a duration of one year that is invoiced monthly. Contract line start date 16-OCT-2015, Contract line end-date 15-OCT-2016. Line amount is 1200
Billing schedule
16-31 OCT 2015 50
1-30 NOV 2015 100
1-31 DEC 2015 100
....
....
1-30 SEP 2015 100
1-15 OCT 50
As shown in the example above the first and the last billing period are broken. In case of renewal, the new contract has the same billing schedule for the next year. This is not very customer friendly. The customer will receive two separate invoices of 50 before the contract is renewed in Oracle. This is confusing and not very customer friendly, while at this moment the current ERP system sends invoices of 100 every month until the contract is terminated. The customer is used to receive a monthly invoice of 100, but because of the renewal functionality the customer is