Revenue Settlements

A settlement is an amount or a service agreed between two or more parties based on an agreement signed between the parties. The party which uses the services of the other party agrees to pay an amount for the services used. This is known as revenue settlement. Following are the three types of settlements for a service provider available in Magnaquest's Billing & CRM solution.

• Content Providers

• Business Dealers

• Sales Person

Content Provider

The service provider in order to facilitate a service to a customer requires content. This content is not owned by the service provider but is available with the content provider. The service provider takes content from different content providers (Partner) and sells them as a bundle to the end customer.

For example, in the Pay TV segment, following are some of the service providers and content providers.

Service Providers: TATA SKY, AIRTEL, BIGTV, HATHWAY etc

Content Providers: STAR, ETV, ZTV, SUN etc

For example, the service provider TATA SKY takes content from content providers; Star, Etv, Ztv and Sun and makes it as a bundle product and sells it to the customer. The customer pays the required amount for using the service to TATA SKY, the service provider. The service provider calculates the amount based on the agreement made with the content providers and settles the generated revenue to the content providers. This process is known as Revenue settlement between a service provider and a content provider.

Magnaquest's Billing & CRM solution facilitates you to register service provider, content providers, define rules for revenue settlement, and settle revenue. Following is the process to settle revenue between a service provider and a content provider.

Prerequisites

Before you settle revenue, following prerequisites should be addressed in the system:

• Define Service Provider in the Partner screen
• Define Content Providers in the Partner screen
• Define settlement slabs in the Settlement Slabs screen
• Map services to the partner in the Settlement Partner Service Mapping lookup code

Content Provider

After all the prerequisites are addressed, define rule for settling the revenue.

Define Rule

Settlement Rule Mapping screen helps you to define revenue settlement rules.

1. In the Rule Sub Category drop-down, select the value as Partner.

2. In the Rule Slab Mode drop-down, select the value as Volume or Incremental based on your requirement.

3. In the Rule Frequency drop-down, select the value as Days, Weeks or Months.

4. In the Rule Frequency Value drop-down, specify the interval. For example, if days is selected in Rule Frequency drop-down, and the value is specified as 3. If the Revenue Settlement job is programmed to run continuously, for every three days the revenue is settled to the partner.

5. In the Rule Sub Category drop-down, select the partner to which you want to settle the amount.

6. In the Rule Sale Option drop-down, select the service on which you want to settle the revenue.

7. In the Slab drop-down, select the slab, which you want to apply for this rule.

8. Click Save to save the settlement rule mapping.

Run the Revenue Settlement job to settle the revenue for the partner. The job settles the revenue based on the defined rule for the content provider.

Boquet

Business Dealer

Business Dealer or Operational Entity books orders for customers. The service provider settles amount to the business dealers based on the sales count or sales amount.

Sales Person

Before we define revenue settlement rules, the content provider, business dealer, and the sales person details should be captured in the system. The following section details about revenue settlement of a service provider with a sales person.

Prerequisites

Define an Employee Group

Define a team

Define an employee

Settlement Configuration

The configurations related to settlement are as follows:

Define Slab

Settlement Slabs screen is used to define settlement slabs.

Navigation: System Administration Settlements  Settlement Slabs

1. In the Slab Name box, type the slab code.

2. In the Slab Description box, type the slab description.

3. In the Rule Sale Item drop-down, select the value as Sales Count or Sales Amount. Sales Count represents the number of sales of a plan where as sale amount represents the amount incurred through selling the plans.

Note: For rule sale item “Sales Count”, settlement type options are Per Count, Bulk, or Custom. For rule sale item “Sales Amount”, settlement type options are Flat, Percent, or Custom.

4. Specify the slab range in the From and To boxes.

5. Select Settlement Type as Per Count from the drop-down box.

6. In the Settlement Value box, provide the value.

7. Click Save after you define the required slab ranges.

Define Rules

Settlement Rule Mapping screen is used to define rules for revenue settlements.

Navigation: System Administration Settlements  Settlement Rule Mapping

1. In the Rule Code box and the Rule Description box, enter the code and description of the revenue settlement rule respectively.

2. In the Rule Category drop-down, select the value as Employee.

3. By default, Sales Person appears in Rule Sub Category drop-down.

4. In the Rule Sale Item drop-down, select the value as Sales Count or Sales Amount. Sales count means service count or each service count in a bouquet or plan count in a particular rule frequency and its value.

5. By default rule sale option is "Plan” for rule sale item “Sales Count”. For rule sale item “sales amount”, rule sale option “Subscription Amount” is also available along with "Plan".

6. In the Rule Group drop-down, select the employee groups or select Non-group to display all the available employees in Rule Sub Category drop-down of Rule Details grid.

7. In the Rule Sale Type  drop-down, select the value as either Direct Sale or Hierarchy Sale. Direct Sale means sales count directly by a partner or an operational entity or a salesman. Hierarchy Sale means sales count or sales amount done by the players under hierarchy including hierarchy head end for an operational entity or a salesman. Settlement amount accounted to head end.

8. In the Rule Slab Mode drop-down, select the value as Volume or Incremental.

9. In the Rule Frequency drop-down, select the value as Days, Weeks, or Months.

10. In the Rule Validity grid, select from date and to date from respective fields to define validity period of the rule.

11. Select the Is Custom Rule check box to display defined custom templates. The custom templates appear in Slab Name drop-down of Rule Details grid.

12. Select Is Sale Order Required and Is Sale Category Required check box.

13. Click Add.

14. In the Rule Sub Category drop-down box, select the employee.

15. In the Rule Sale Option drop-down box, select the plan.

16. In the Slab Name drop-down box, select the slab which you have defined in Settlement Slabs screen.

17. Click Save to save the rule details.

18. Click View against the slab name to view the definition of the slab in a web page dialog box.

Execute Revenue Settlements batch job

Revenue Settlement job is scheduled to calculate the settlement amount on sales count or sales amount for the appropriate rule code.

Navigation: Jobs Schedule Jobs

1. Provide appropriate information in the required fields and select Revenue Settlement in Program drop-down box.

2. In the Rule Sub Category drop-down box, select the value as Sales Person.

3. In the Rule Code drop-down box, select the rule description, which you have defined in the Settlement Rule Mapping screen.

4. Click Schedule Now to schedule the job. The revenue settlement amount is calculated.

View the revenue settlement amount details in Settlement Register screen

Navigation: Settlements Settlement Register

1. In the given filters, provide the required information and click Search.

2. The settlement details like settlement amount and settlement period are displayed.