Change in Preference
The Preference captures the organizational policies or customer preferences to generate billing schedules. It contains settings to generate recurring billing schedules and compute fee amounts.
Any change in preference (or its key fields) during an ongoing contract is considered a disruption because it can have a significant impact on the flow of the revenue of the contract. When a change in preference is initiated (as a part of an ABO or individual change), the existing billing schedule records are superseded and new records are created, irrespective of any global billing setting or configuration.
New Sale
There is a new sale of a recurring product for one year contract starting from 01 January 2025 with TCV (Sales) of USD 1,200.00. The billing frequency is Quarterly.
- Billing Cycle Start = Billing Day of Month
- Billing Day of Month = 15th of the Month
When billing is initiated for this subscription, billing header and schedule records are generated.
The billing header is as follows:
| BH Name | Current OLI | Billing Start Date | Billing End Date | TCV (Sales) | Billing Frequency | Preference | Billable Amount for Current OLI | Status |
|---|---|---|---|---|---|---|---|---|
| BH-107 | OLI-128 | 01-January-2025 | 31-December-2025 | USD 1,200.00 | Quarterly | My Billing Pref - A | USD 1,200.00 | Active |
| Name | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status |
|---|---|---|---|---|
| BSR-1 | 01-January-2025 | 14-January-2025 | USD 46.67 | Invoiced |
| BSR-2 | 15-January-2025 | 14-April-2025 | USD 300.00 | Pending Billing |
| BSR-3 | 15-April-2025 | 14-July-2025 | USD 300.00 | Pending Billing |
| BSR-4 | 15-July-2025 | 14-October-2025 | USD 300.00 | Pending Billing |
| BSR-5 | 15-October-2025 | 31-December-2025 | USD 253.33 | Pending Billing |
After amendment
The asset undergoes an amendment to add a markup of USD 400.00 with a new preference for the entire term. Due to the markup amount, the TCV (Sales) is increased to USD 1,600.00.
- Billing Cycle Start = Billing Day of Month
- Billing Day of Month = 1st of the Month
When billing is initiated, all the previous records in pending billing status are superseded and the invoiced ones are refunded. New records are created as per the new Preference with the new fee amount. The new Preference is stamped on the billing header.
The billing header is as follows:
| BH Name | Current OLI | Billing Start Date | Billing End Date | TCV (Sales) | Billing Frequency | Preference | Billable Amount for Current OLI | Status |
|---|---|---|---|---|---|---|---|---|
| BH-107 | OLI-129 | 01-January-2025 | 31-December-2025 | USD 1,600.00 | Quarterly | My Billing Pref - B | USD 400.00 | Active |
| Name | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status | |
|---|---|---|---|---|---|
| BSR-1 | 01-January-2025 | 14-January-2025 | USD 46.67 | Invoiced | Invoiced BSR remain as is |
| BSR-2 | 15-January-2025 | 14-April-2025 | USD 300.00 | Superseded | BSRs in Pending status are superseded |
| BSR-3 | 15-April-2025 | 14-July-2025 | USD 300.00 | Superseded | |
| BSR-4 | 15-July-2025 | 14-October-2025 | USD 300.00 | Superseded | |
| BSR-5 | 15-October-2025 | 31-December-2025 | USD 253.33 | Superseded | |
| BSR-6 | 01-January-2025 | 14-January-2025 | (USD 46.67) | Pending Billing | Refund for BSR-1 |
| BSR-7 | 01-January-2025 | 31-March-2025 | USD 400.00 | Pending Billing | New BSRs as per new Preference |
| BSR-8 | 01-April-2025 | 30-June-2025 | USD 400.00 | Pending Billing | |
| BSR-9 | 01-July-2025 | 30-September-2025 | USD 400.00 | Pending Billing | |
| BSR-10 | 01-October-2025 | 31-December-2025 | USD 400.00 | Pending Billing |
