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Telecom Billing Processes

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Billing is the aggregation of all non-recurring, periodic, and chargeable events, on an account by account basis. It is also the calculation of all outstanding charges and available discounts and bonuses.

The output from billing process is a stream of tagged bill data that can be used to create a bill on paper, disk, or any other media. Billing Engine which is part of the Billing System performs creates invoices.

Bill Process:

The following diagram shows the basic diagram of the Billing Engine and associated functions:

Billing Functions

Billing Engine picks up an account due to generate a billing and following associated information to generate invoice data:

Above mentioned information is just an indicative and may vary from billing system to billing system and operator to operator.

Billing Engine produce raw data having all the information required to generate a final bill and this raw data can be used to generate a final invoice to be sent to the end customer.

Bill Cycles:

When a customer is added into the Billing System, system assigns the customer a predefined Bill Cycle. A bill cycle is a date on while Billing Engine runs and produces bill for a set of customers.

If there are many customers, then they are divided in to different billing cycles. For example, a group of customers can have billing data as 1st of every month; another can have the bill date of 15th of every month.

If customer is assigned to run a bill on 1st of the month, this would be called customer's nominal bill date. But because of various reasons, many times bill run becomes belay and actual bill gets generated on a later date, this would be called actual bill date.

Bill Types:

There could be various types of bill available for a user. Few of them may not be supported by some Billing System.

Bill TypeDescription
Initiation billNormally only requested as the first bill on an account. Includes product charges and adjustments, but no events.
Periodic billProduced at regular intervals. Includes all periodic charges, events, and adjustments.
Interim billAn extra bill that contains charges due to events processed for the account since the last bill. Includes all events and adjustments, but no periodic charges.
Suspension billSent when an account has been suspended. Includes all periodic charges, events, and adjustments.
Final billSent when an account has been terminated to bill all outstanding charges that are due. Includes all periodic charges, events, and adjustments, along with any refunds, for example, the return of a deposit.
Post-final billSent when a terminated account has receivables outstanding after the production of a final bill. Includes any post-termination events and adjustments, but no periodic charges.
Credit noteAn extra bill that contains all adjustments in the customer.s favor generated since the last bill.
Summary StatementsA summary statement can be produced for a customer-driven billing hierarchy. It can summarize all bills produced by all accounts below the customer it is associated with. Optionally, they can also concatenate all the bills into a single statement.

Bills are produced either automatically, or on request from a customer.

Billing Modes:

A Billing System can generate bills in two modes, for example:

Billing Engine assigns different invoice numbers to all the production bills which helps in keeping track of different payments made against the invoice.

Bill Suppression:

There may be a situation when it is not worth to generate a bill, and better to suppress the bill. Following are such type of situations:

A small bill is a bill that falls between the range defined by the minimum positive bill amount and the maximum negative bill amount exceptional bill conditions. Small valued bills are produced and then removed from the billing process, so that they are not sent out to customers.

Exceptional Bills:

Examples of possible exceptional bills are unusually high bills or bills which exceed the account's credit limit by a set multiplier. The Billing Engine performs some basic checks on the bill data that it produces. These involve testing the total being billed to ensure that the following conditions are met:

All the above conditions vary from billing system to billing system and operator to operator and they are called exceptional bills conditions.

Bill Itemization:

By default, all the invoices provide a detail summary of product and services charges along with usage charges. But it does not provide a detail on all the calls made by the customer.

An itemized bill means giving complete detail of all the calls made by the customer. This needs more number of papers to be printed. Recent trend is to send itemized bill through electronic email and summary statement is sent using a physical copy of the bill.

Bill Formatting:

There are Billing Systems who provide Billing Formatting utilities which can be used to generate final formatted bills.

Bill formatters take the output data produced by the Billing Engine and usually generate either Post Script file or a PDF file which can be used by the Bill Printing Company.

If Billing System is not capable enough to generate formatted bills then system generates a set of tags files alongwith billing information and any external Bill Formatter can use those tagged information to generate a well formatted invoice.

No matter, if Billing System generates formatted invoice or we use any external tool to generate these formatted invoice using raw data generated by the billing engine, finally these invoice are sent to the bill printing company who takes care of generating final copy of generating invoice. I will explain it in detail in subsequent chapter "Invoice Generation".

What is Next?

Next chapter would explain discount process which is actually a part of rating and billing process but I kept it as a separate section because of various items needs more explanation.

I will explain different type of discounts hierarchies and which can be given at the time of rating and billing.


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