Change in the Billing Rule
Billing rule can be set to Bill in Advance or Bill in Arrears and it has impact on the Ready for Invoice Date of the schedule record.
Change in the billing rule during an ongoing contract is considered a disruptionbecause it can have a significant impact on the flow of the revenue of the contract. When a change in billing rule is initiated (as a part of an ABO or individual change), the existing billing schedule records are superseded and new records are created, irrespective of any global billing setting or configuration.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 with TCV (Sales) of USD 1,200.00 with a quarterly billing frequency. The one year contract starts from 01 February 2025. The Billing rule is set to Bill in Advance. When billing is initiated, a billing header, schedule records, and schedule details are generated.
The billing header is as follows:
| BH Name | Current OLI | Billing Start Date | Billing End Date | TCV (Sales) | Billing Frequency | Billing Rule | Billable Amount for Current OLI | Status |
|---|---|---|---|---|---|---|---|---|
| BH-100 | OLI-126 | 01-February-2025 | 31-January-2026 | USD 1,200.00 | Quarterly | Bill in Advance | USD 1,200.00 | Active |
| Name | Currency | Period Start Date | Period End Date | Ready for Invoice Date | Actual Fee Amount | Invoice Status |
|---|---|---|---|---|---|---|
| BSR-1 | USD | 01-February-2025 | 30-April-2025 | 01-February-2025 | 300.00 | Pending Billing |
| BSR-2 | USD | 01-May-2025 | 31-July-2025 | 01-May-2025 | 300.00 | Pending Billing |
| BSR-3 | USD | 01-August-2025 | 31-October-2025 | 01-August-2025 | 300.00 | Pending Billing |
| BSR-4 | USD | 01-November-2025 | 31-January-2026 | 01-November-2025 | 300.00 | Pending Billing |
After amendment
The asset undergoes an amendment with a new billing rule to Bill in Arrears for the entire term. A markup of USD 400.00 is imposed as a result of change in the billing rule during ongoing contract. Due to the markup amount, the TCV (Sales) is increased to USD 1,600.00.
When billing is initiated, all the previous records are superseded and new records are created with the new Ready for Invoice Date and fee amount. The new billing rule 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 | Billing Rule | Billable Amount for Current OLI | Status |
|---|---|---|---|---|---|---|---|---|
| BH-100 | OLI-126 | 01-February-2025 | 31-January-2026 | USD 1,200.00 | Quarterly | Bill in Arrears | USD 1,200.00 | Active |
| Name | Currency | Period Start Date | Period End Date | Ready for Invoice Date | Actual Fee Amount | Invoice Status |
|---|---|---|---|---|---|---|
| BSR-1 | USD | 01-February-2025 | 30-April-2025 | 01-February-2025 | 300.00 | Superseded |
| BSR-2 | USD | 01-May-2025 | 31-July-2025 | 01-May-2025 | 300.00 | Superseded |
| BSR-3 | USD | 01-August-2025 | 31-October-2025 | 01-August-2025 | 300.00 | Superseded |
| BSR-4 | USD | 01-November-2025 | 31-January-2026 | 01-November-2025 | 300.00 | Superseded |
| BSR-5 | USD | 01-February-2025 | 30-April-2025 | 01-May-2025 | 400.00 | Pending Billing |
| BSR-6 | USD | 01-May-2025 | 31-July-2025 | 01-August-2025 | 400.00 | Pending Billing |
| BSR-7 | USD | 01-August-2025 | 31-October-2025 | 01-November-2025 | 400.00 | Pending Billing |
| BSR-8 | USD | 01-November-2025 | 31-January-2026 | 01-February-2026 | 400.00 | Pending Billing |
