When you do not invoice a legacy asset line item as per the recurring billing, Conga Billing does not recognize such invoices. In such a scenario, Conga Billing creates fresh billing schedules and introduces a catch-up amount to align the legacy billing with the recurring billing. Conga Billing calculates the catch-up amount by using the following formula and then invokes its logic to decide if catch-up is required or not.

Catch-up amount = remaining billable amount – (net unit price * quantity * billing term)

• If the remaining billable amount = 0, the fee amount of the first billing schedule equals Total Contact Value (TCV), Conga Billing does not create subsequent billing schedules.
• If the remaining billable amount = (net unit price * quantity * billing term), Conga Billing does not create a catch-up amount.

• If the remaining billable amount ≠ (net unit price * quantity * billing term), Conga Billing creates a catch-up amount.

Catch-up amount helps Conga Billing to align the billable amounts with the CPQ Pricing of the asset line. This is imperative to check the massive revenue leakage.

When billing is initiated, Conga Billing creates a waterfall of billing schedules depending on the "Billing Term". The first record is for the legacy period, with the Type field set to "Informational" and the Status field set to "Invoiced". The second billing schedule is for catch-up amount with the Type field set to "Contracted" and the Status field set to "Pending Billing". In subsequent billing schedules, the Type field is set to "Contracted" and the Status field to "Pending Billing".