An adjustment is a transaction that debits or credits a customer's account by changing the amount due for a bill item, or the amount of a noncurrency balance.
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A credit adjustment decreases the customer's balance; that is, it decreases the amount a customer owes. A credit adjustment is represented as a negative number. For example, when you give 100 free minutes, the adjustment is represented as -100.
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A debit adjustment increases the customer's balance.
Customer service representatives perform adjustments on a variety of levels. For example:
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Event level: If the customer made a 10-minute call that was mistakenly billed as a 30-minute call, CSRs perform the adjustment for that specific call at the event level.
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Account level: If the customer's package provided 100 included minutes a month, but charges started accruing after only 30 minutes, CSRs perform the adjustment at the account level instead.
Credit adjustments do the following:
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For currency balances, decrease the Due of a bill item
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For noncurrency balances, increase the adjusted balance
If a CSR is crediting an event, the balance impact of that event is removed from the customer's account. Debit adjustments have the opposite effect.
The way that BRM processes adjustments and records the adjustment's balance impact varies from level to level, as follows:
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A/R and individual account: Adjustments at this level reduce the current balance of the customer's bill. The account's default balance group is decreased by the amount of the credit.
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Subscription service and member service: Adjustments at these levels are similar to account adjustments. However, the adjustment targets a specific balance group associated with the subscription service or member service rather than using only the default balance group. In this case, BRM uses the balance group supplied by the /service object associated with the subscription service or member service selected by the CSR.
As with account adjustments, the CSR must allocate the adjustment before it affects the customer's bill.
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Bill level: Adjustments at this level reduce the current balance of the customer's bill. Here, the amount of the adjustment is subtracted from the due amount for the bill, and payment for that amount is not requested.
Adjustments can be made to an entire bill or a selection of bill items, distributing the adjustment as a fixed amount per item or as a percentage. In either case, BRM creates a single adjustment item and transfers the credit to the bill items covered by the adjustment. The current balance of the appropriate balance groups is reduced by the amount of the credit.
Bill adjustments act against A/R bills only. CSRs cannot adjust a bill from a nonpaying bill unit (/billinfo object) by filing a bill adjustment directly against that bill. Instead, they file the bill adjustment against the parent A/R bill. Also, the adjustment amount cannot exceed the total amount of the bill against which the adjustment is applied.
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Item level: When you adjust a bill item, the amount of the adjustment is subtracted from the Due of the bill item, and payment for that amount is not requested. The current balance of the appropriate balance group is reduced by the amount of the credit.
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Event level: Adjustments at this level depend on whether the adjustment occurs before billing or after billing. In either case, the original event is never adjusted.
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If the adjustment occurs before billing has run, it changes the balance impact of the shadow event.
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If the adjustment occurs after billing has run, it changes the balance impact of the adjustment event (/event/billing/adjustment/event).
Table 1-1 summarizes how adjustments handle currency and noncurrency balances.
Table 1-1 Adjustable Balances
Adjustment Type Currency Noncurrency Account adjustment (1)
Yes
Yes
Subscription service adjustment (1)
Yes
Yes
Member service adjustment (1)
Yes
Yes
Bill adjustment
Yes
No
Item adjustment
Yes
No
Event adjustment
Yes
Yes
Note:
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For these adjustments, there must be a noncurrency balance group at the account level for the adjustment to affect a noncurrency balance.
An event adjustment that credits currency reduces the balance impact of the event and its General Ledger (G/L) impact. It does not cancel the event, only the cost of the event.
Note:
When adjusting pending items, ensure proper G/L reporting by specifying that BRM create a shadow adjustment instead of a standard adjustment. See "Adjusting Events" in BRM Opcode Guide.
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As an expert in billing and customer service operations, I bring extensive knowledge of the concepts and processes involved in handling adjustments within a customer account. My expertise is backed by a deep understanding of the intricacies of billing systems, customer relationship management, and the technicalities of adjustment processing.
The article discusses various aspects of adjustments in the context of customer billing. Let's break down the key concepts mentioned:
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Adjustment Types:
- Credit Adjustment: Decreases the customer's balance, represented as a negative number (e.g., -100 for 100 free minutes).
- Debit Adjustment: Increases the customer's balance.
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Levels of Adjustment:
- Event Level: Adjustment for specific events, such as correcting a billing error for a call.
- Account Level: Adjustment at the overall account level, affecting the entire account.
- Credit Adjustments: Affect currency and noncurrency balances differently.
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Balance Impact at Different Levels:
- A/R and Individual Account Level: Adjustment reduces the current balance of the customer's bill.
- Subscription Service and Member Service Level: Similar to account adjustments but target specific balance groups associated with the service.
- Bill Level: Reduces the current balance of the customer's bill, with options to adjust the entire bill or specific items.
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Item and Event Level Adjustments:
- Item Level: Adjustment subtracts from the due amount of the bill item.
- Event Level: Adjustment depends on whether it occurs before or after billing. Original events are not adjusted.
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Handling Currency and Noncurrency Balances:
- Adjustments can impact both currency and noncurrency balances depending on the adjustment type and level.
- Table 1-1 summarizes the adjustable balances for different adjustment types.
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Important Notes:
- Adjustment amount limitations exist at the bill level.
- Adjustments should be properly allocated before affecting the customer's bill.
- Event adjustments that credit currency impact the cost of the event but do not cancel the event itself.
- Proper General Ledger (G/L) reporting is emphasized, especially when adjusting pending items.
In summary, the article provides a comprehensive overview of adjustments in billing systems, detailing how adjustments are made at various levels and their impacts on different balance types. It underscores the importance of accuracy in billing processes and the need for proper handling of adjustments to ensure transparency and financial integrity.
