Search 800 + Posts

Apr 25, 2009

R12 Order Management MACD

In this blog I explains briefly about the R12 MACD feature. In case you need more details fell free to contact me.

MACD stand for Move , Add , Change, Disconnect. This feature takes care of

  1. Recurring charges, and how to apply recurring charges on an order.
  2. Telecommunication service order along with tangible goods (Equipments).
  3. How to Setup the Payment terms for the “Payment Due with Orders”.

Recurring Charges are the FIXED charges that are applied after fixed interval (monthly/quarterly).
E.g. Phone charge for every month.

Before R12 this concept was handle with UOM, but in R12 Oracle has introduced a concept of “Charge Periodicity” .It means how often customer should be charged.
A new Attribute name “Charge periodicity “ has introduced in Order Management. It is defined at the Item Master level. Values for it can be any frequency of the recurring charge like weekly/monthly/yearly etc.

In Order Management, any order line with value for Charge Periodicity is refer as recurring line and if it is missing then order line will be consider as “One Time charge” (regular line).

In Order UI user can see the Charge Periodicity at Order Header as well as Order Line.It will display total value for each periodicity separately, because viewing the total for different periodicity together doesn’t make any sense.
e.g. if an order has 5 lines
Line # Periodicity Line Amount
L1 Monthly 100
L2 Yearly 300
L4 Monthly 100
L5 Weekly 25

In above case if user selects periodicity “Monthly” he will able to see Sum of Line amount where periodicity “Monthly”, and it is 200.

Setup and Process flow for Recurring Charges
Profile - OM: UOM Class for Charge Periodicity
System Parameters - Enable Recurring Charges. Please note that once enable it cannot be disable.


  1. Set the profile option as well as System parameters.
  2. Define the Charge Periodicity at the Item Master Level.Create Sales Order .
  3. Add and configured Telecom Product.
  4. Check Recurring and one-time charges for item.
  5. Check the recurring and one time total.

Service Order along with Tangible goods (Equipment).

MACD allows user to enter Service order for Telecom along with the tangible items.e,g Cell phone along with the Service plan.

Setup and Process

  1. Setup tangible item in Item Master.
  2. Add tangible item in the configuration of the service item. (Before R12 that was not possible).

1. Create Sales Order.
2. Add tangible and Service Items.
3. Add warranties (if any).
4. Check recurring and one time charges
5. Book Order.

Payment Due with Order
In telecom Sales when we order we pay some portion at the time of Order, it is known as “Pay due with Order” (notes – it’s all depend on your business need), and rest portion is charge on Invoice. E.g. when we Order Cell phone, we pay one time activation fee upfront.

Pay due with order (PDWO) is most of time Sum of Charges for the one time service item as well as cost of the Tangible goods. It is payment assurance for the purchased good before order actually placed. It authorized payment at the time of order fulfillment and rest of the amount will be bill to customer (invoice). It reduces risk from service provider point of view.

Order Management has provides Defaulting Rule Frame work to determine Payment terms on the Order line. It determines whether to Apply “Pay due with Order” or different Payment Terms to an Order line. This type of defaulting rule can be setup at the Product Level as well as Customer Level.

In the Payment Term Setup – Any Payment Term with Days Due = 0 and 1+ installment has considered as the Payment Due With Order.

Following are the Setup Required for “Pay due with Order”

  1. System Parameters
  2. Payment Terms
  3. Defaulting Rules
  4. Customer Credit Check
  5. Transaction Type
  6. Payment Types
  7. Item Attribute and Workflow Assignment to Order Line.

Please make sure that while doing the Setup for the Payment Terms for “Pay due with Order”, Deferred Payment Flag set to “N” for Credit Card Payment.


  1. Thanks Mihir , In case if you like my posts, please do recomend it to others too ( if you feel ok) .Recommendadtions are always very welcome.

  2. Nice one...

    Can we implement MACD for TSO with out configurator?.
    Is it seeded workflow in R12?.How we can enable this,if this is seeded one?.


  3. There no Additional workflow added for MACD , and yes it is design especially for Telecommunication services.