Section 2 : Chapter 5

Roaming
Reconciliation

Prepaid
Accounting (OWMUCHTRAFFIC
WASRECOGNIZEDAS
Network Mediation
BILLABLEBYEACH
REVENUE
Billing
FUNCTION

Settlement
(OWMUCH
NETWORKACTIVITY
WASTHERE
TODAY
(OWMUCHTRAFFIC
WASPROCESSEDBY
-EDIATIONAND
FORWARDED

Figure 2.5.3 Revenue Recognition Reports

Billing Activity Reports

The integrity of revenue recognition reporting tells management

how busy the telco actually is and provides a good indication of
what revenues should be. If you do not know how much activity
there has been, you really have no idea how much money should be
coming in.

Assuming that the revenue recognition reports have integrity, the

next thing that management needs to know about is billing activity.
Many telcos find that they lose the majority of their revenue at the
invoicing stage.

Billing activity reports tell management how many minutes (or

Erlangs) of traffic were processed each day and how many dollars
those results translate into.

Note that the tricky part of baseline reporting occurs at this point in
the RA process. The problem is that the timeframes for recognition,
billing activity and realization reports are very different.

Revenue recognition can be measured every day as it occurs, but the

billing process associated with those services can happen anywhere
from several months prior (for prepaid) to many months after the

eXcellence in Telecommunications 71