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Refunds in TMF 622 Product Order Management

  • 1.  Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted Jun 22, 2024 16:12

    Hi all,

    As part of change product orders, customer might want to return some items or downgrade his plan leading to some refunds being issued to the customer in context of the Change Product Order.

    How does TMF 622 Product Order suite of APIs propose to handle refunds to the customer?



    ------------------------------
    Varun Pandhi
    Infosys
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  • 2.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 29 days ago
    Edited by Matthieu Hattab 22 days ago

    Hi,

    It doesn't. TMF 622 is about product ordering, which impact Profit & Loss.

    monetary transactions (credit, payment, refund...) are Balance Sheet operation only (what TM Forum ODA calls "Party Financial Management activities")

    you need a totally different API like TMF676, possibly 670.

    ------------------------------
    Kind regards,

    Matthieu Hattab
    Lyse Platform
    ------------------------------



  • 3.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 29 days ago

    Thanks Matthieu

    I think that Varun is wondering how the business process of product ordering cause payments and refunds to be initiated. I would say that this is part of the internal business logic of a Product Order Management system (or the corresponding ODA components). Based on the actual order data and the prices defined in the catalog, the OM system would need to collect payments and/or issue refunds.

    Of course these would also need to be recorded as applied customer billing rates on the customer bill.



    ------------------------------
    Jonathan Goldberg
    Amdocs Management Limited
    Any opinions and statements made by me on this forum are purely personal, and do not necessarily reflect the position of the TM Forum or my employer.
    ------------------------------



  • 4.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 29 days ago
    Edited by Varun Pandhi 29 days ago

    Thanks Matthieu and Jonathan for response.

    Essentially to summarize we could use Refund resource defined in TMF 676 Payment Management API and associate it to an Account, but there is no means to know refund came about as part of which ProductOrder or ProductOrderItem. Am I correct?

    Or is CorrelationId meant to satisfy this requirement wherein CorrelationId on Refund resource would hold TMF Id of ProductOrderItem due to which it was initiated?



    ------------------------------
    Varun Pandhi
    Infosys
    ------------------------------



  • 5.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 28 days ago

    I think that correlatorID is intended for a consumer to refer a refund or a payment to its own records (semantically I would have preferred to use ExternalIdentifier for this).

    Payment has a list of PaymentItems, where each item has an entity reference to the entity that caused the payment item to be made (e.g. an order, a bill, etc.). However Refund does not have this corresponding list - we should consider adding it.



    ------------------------------
    Jonathan Goldberg
    Amdocs Management Limited
    Any opinions and statements made by me on this forum are purely personal, and do not necessarily reflect the position of the TM Forum or my employer.
    ------------------------------



  • 6.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 22 days ago
    Edited by Varun Pandhi 22 days ago

    Hi Jonathan,

    Thanks for your response, however when a POST Product Order API is fired, refund is issued to the customer as a result of the ProductOrder creation, so is there any way in which we can have a reference to Refund in ProductOrder resource/ POST ProductOrder API response?

    Similarly, for the payment methods as well, a customer might be supporting multiple payment methods (Bill to Account, Credit Card Payment, Cash, Debit Card Payment etc.). While placing a Product Order, they would want to specify which payment method (from the allowed payment methods) to use for a particular ProductOrder. Is there a mechanism in TMF 622 ProductOrder resource/POST ProductOrder API request to provide the same?



    ------------------------------
    Varun Pandhi
    Infosys
    ------------------------------



  • 7.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 22 days ago

    Hi Varun

    Let's look at this from a fine-grained perspective. A ProductOrder generally has multiple ProductOrderPrice, representing one-time, recurring, and usage charges that result from the order itself and of course from the ongoing ownership of the Product. Each Price subentity should be associated with an Account subclass (in most cases this will be a Billing Account), and the charges will be applied (AppliedCustomerBillingRate - ACBR) to that account and will affect the account balance. This is indeed reflected in the model.

    Some charges may need to be paid up-front, at ordering time, e.g. device purchase, first recurring charge, etc. And in your case, some charges may need to be refunded directly to a payment method (instead of being credited on the next bill).

    If we look at the current Open API model, we can see that there is room for improvement in this area:

    • How can it be "known" at ordering time which Prices are to be paid up-front - this could be a catalog designation, or something determined at ordering time by policy rules
    • Similarly, how can it be known that negative charges/credits need to refunded immediately

    However, once it is determined that an immediate payment/refund needs to be made, the association of a payment method is supported as part of the Payment Management API TMF676.

    Hope it helps



    ------------------------------
    Jonathan Goldberg
    Amdocs Management Limited
    Any opinions and statements made by me on this forum are purely personal, and do not necessarily reflect the position of the TM Forum or my employer.
    ------------------------------



  • 8.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 22 days ago
    Edited by Matthieu Hattab 22 days ago

    I've been playing with the TMF AI assistant. It's fun and can be helpful.

    Use it and ask your question! I tried it and it was quite interesting. It suggests to use TMF700 as well.
    A good prompt is obviously important, so you may want to try different ones.

    it also confirms that TMF has not defined RMAs.



    ------------------------------
    Kind regards,

    Matthieu Hattab
    Lyse Platform
    ------------------------------



  • 9.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 22 days ago

    I was worried that AIVA would take my place as the lead responder on this community. However, when I asked AIVA itself if it had a chance of overtaking me, it denied all knowledge of the Engage community and also of me ...

    It did return search results about me, so maybe I should be worried ...



    ------------------------------
    Jonathan Goldberg
    Amdocs Management Limited
    Any opinions and statements made by me on this forum are purely personal, and do not necessarily reflect the position of the TM Forum or my employer.
    ------------------------------



  • 10.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 21 days ago

    Hi Jonathan,

    Thanks for your response, this helps.

    However, our use case of PaymentMethod is different. When placing a product order, customer needs to have capability to specify that he wishes to pay via which Payment Method (Credit Card, Debit Card Payment, Cash etc.).

    Is there a mechanism in TMF 622 ProductOrder resource/POST ProductOrder API request to provide the association to PaymentMethod by reference or value?

    I tried checking on AIVA as well, but I couldn't trace back the response in the resource model for TMF 622 ProductOrder -

    Question: how to associate payment method to an order

    Answer: To associate a payment method with an order, you can pass it by reference using the `@type` attribute with the value set to `paymentMethodRef`. You must provide the `id` and `@referredType` attributes, where `@referredType` indicates the payment method type. You can also pass the entity by value by setting the `@type` attribute to the payment method type. Each payment method should have a name and status. You can retrieve, partially update, or create a payment method using the Payment Method API. A payment method can also be associated with an order using the payment method's API name. 



    ------------------------------
    Varun Pandhi
    Infosys
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  • 11.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 20 days ago

    Hi Varun,

    We have Billing account reference at the OrderItem level, which in turn has the default Payment method associated.

    Isn't it the path you want to follow?

    Warm regards,

    Sukhdev



    ------------------------------
    Sukhdev Singh Matharu
    Vodafone GmbH
    All views are personal and don't represent my employer.
    ------------------------------



  • 12.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 20 days ago

    Hi Sukhdev

    I think Varun wants the ability to use an ad-hoc payment method, for example cash, cheque, ad-hoc credit card, etc., that would not necessarily be referred to from the billing account.

    But it's more complicated (in my view) than simply dumping the payment method details within the order. In a typical self-service flow (for example - no cheque or cash), the end user (customer) will need to supply credit card details via UI, and the card needs to be tokenized against a payment gateway or similar. And quite likely the merchant (telco) will want to authorize the payment while the user is still online. So a draft payment will have been created even before the order is submitted.

    This refers back to my statement earlier in the chain that there is a reference from Payment (items) to the Order (or prices within the Order).



    ------------------------------
    Jonathan Goldberg
    Amdocs Management Limited
    Any opinions and statements made by me on this forum are purely personal, and do not necessarily reflect the position of the TM Forum or my employer.
    ------------------------------



  • 13.  RE: Refunds in TMF 622 Product Order Management

    TM Forum Member
    Posted 21 days ago

    When I use it, it gave me a list of related posts from the engage communities...

     

    Kind Regards,

     

    Matthieu Hattab

    Solution Architect Sales Channels at Lyse

    +31 6 555 37 809