Changes to Billing Policy/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.
When a change/update in preference/billing policy is initiated, the changes are reflected from the next transaction. The ongoing contract remains unaffected with this change.
During a new sale, if the updated Preference is associated with the contract, the billing schedules are generated based on the new Preference. During an Amendment Billing Operation (ABO), if you want to associate an updated Preference whose key billing fields differ from the Preference used during the new sale, you must select the Sync Billing Info During Amendment flag to generate schedule records according to the updated Preference. When this flag is enabled, the existing billing schedule records are superseded and replaced with new records, regardless of any global billing settings or configurations..
- Billing Cycle Start: e.g., Billing Day of Month, Period Start Date, Order Date, Ready for Billing Date.
- Billing Day of Month: the specific day of the month billing occurs.
- Calendar Cycle Start: aligns billing to a specific calendar month.
- Proration Computation Method: e.g., Calendar Days of First Month, 30 days, etc.
- Prorate When Billing As One Time: controls the proration for recurring products when billed as one-time.
When a subscription is amended and key billing fields within the existing preference are updated, the system syncs/does not syncs these changes to the associated assets and subscriptions based on the value of the setting Sync Billing Info During Amendment. For more information, see Use Case: Sync Preference changes during ABO.
