Recurring Billing for Legacy Assets
Recurring billing refers to the uniform distribution of the net amount of a contract over a period of time, based on the chosen billing frequency.
The net amount is distributed over a series of Billing Schedules for recurring products. Each schedule displays the amount that may be invoiced for a specific duration based on billing frequency and the date when payments are due based on the payment term. In addition, Conga Billing generates an "Informational" billing schedule for the amount already invoiced in the legacy system.
Prerequisites
- The object and fields required to support legacy billing for legacy asset line items are configured. For more information, see Understanding Billing Schedules and Use Case 3.
- The following minimum criteria are met:
- The Is Legacy for Billing checkbox is set to True.
- The Price Type is not Usages.
- The Billing Frequency is not One Time.
- The Original Start Date, Start Date, End Date, First Billing Date, Remaining Billable Amount, TCV, Selling Term, and CPQ Pricing fields (Base Unit Price and Net Price) are captured accurately on the asset line record.
- The asset line item is billed in a recurring fashion in the legacy system.
This implies that the asset has been billed consistently in the legacy
period where the remaining billable amount is in accordance with the
formula:
remaining billable amount= (net unit price * quantity * billing term).
- If the billing is not done in a recurring fashion, Conga Billing creates a catchup amount and a corresponding redundant billing schedule.
To bill a recurring legacy product
Follow the following steps to create a recurring billing schedule.
Use Case: To understand recurring billing with an example
Suppose you are a billing administrator of a company selling computer hardware with a TCV of $5400 for a 36-months billing term. You have already invoiced the customer for $2400 over a billing period of 16 months and the remaining billable amount is $3000 to be billed over 20 months. The legacy contract was started in 2018 but the last known major price or config happened on 7/20/21. So the asset's start date is 7/20/21. The first Billing Date is 11/20/0222. The legacy in Conga should have details as mentioned in the table.
|
Asset Name |
Original Start Date |
End Date |
First Billing Date |
Selling/Billing Frequency |
Selling Term |
Quantity |
TCV |
Remaining Billable Amount |
Net Unit Price |
|---|---|---|---|---|---|---|---|---|---|
|
Installation Device MF9 |
7/20/2021 |
7/19/2024 |
11/20/2022 |
Monthly |
36.00 |
1.00 |
$5,400.00 |
$3000.00 |
$150.00 |
Upon activating, Conga Billing creates 21 billing schedules, BS-001 for the already billed amount in the legacy system with the Type field set as "Informational" and assigns the status as "Invoiced", BS-002 onwards are normal billing schedules with the Type field set as Contracted and status as "Pending Billing" for 20 months.
|
Billing Schedule ID |
Period Start Date |
Period End Date |
Fee Amount |
Ready for Invoice Date |
Type |
Status |
Legacy record? |
|---|---|---|---|---|---|---|---|
|
BS-001 |
7/20/2021 |
11/19/2022 |
$2400.00 |
7/20/2021 |
Informational |
Invoiced |
TRUE |
|
BS-002 |
11/20/2022 |
12/19/2022 |
$150.00 |
11/20/2022 |
Contracted |
Pending Billing |
|
|
BS-003 |
12/20/2022 |
1/19/2023 |
$150.00 |
12/20/2022 |
Contracted |
Pending Billing |
|
|
BS-004 |
1/20/2023 |
2/19/2023 |
$150.00 |
1/20/2023 |
Contracted |
Pending Billing |
|
|
BS-005 |
2/20/2023 |
3/19/2023 |
$150.00 |
2/20/2023 |
Contracted |
Pending Billing |
|
|
BS-006 |
3/20/2023 |
4/19/2023 |
$150.00 |
3/20/2023 |
Contracted |
Pending Billing |
|
|
BS-007 |
4/20/2023 |
5/19/2023 |
$150.00 |
4/20/2023 |
Contracted |
Pending Billing |
|
|
BS-008 |
5/20/2023 |
6/19/2023 |
$150.00 |
5/20/2023 |
Contracted |
Pending Billing |
|
|
BS-009 |
6/20/2023 |
7/19/2023 |
$150.00 |
6/20/2023 |
Contracted |
Pending Billing |
|
|
BS-010 |
7/20/2023 |
8/19/2023 |
$150.00 |
7/20/2023 |
Contracted |
Pending Billing |
|
|
BS-011 |
8/20/2023 |
9/19/2023 |
$150.00 |
8/20/2023 |
Contracted |
Pending Billing |
|
|
BS-012 |
9/20/2023 |
10/19/2023 |
$150.00 |
9/20/2023 |
Contracted |
Pending Billing |
|
|
BS-013 |
10/20/2023 |
11/19/2023 |
$150.00 |
10/20/2023 |
Contracted |
Pending Billing |
|
|
BS-014 |
11/20/2023 |
12/19/2023 |
$150.00 |
11/20/2023 |
Contracted |
Pending Billing |
|
|
BS-015 |
12/20/2023 |
1/19/2024 |
$150.00 |
12/20/2023 |
Contracted |
Pending Billing |
|
|
BS-016 |
1/20/2024 |
2/19/2024 |
$150.00 |
1/20/2024 |
Contracted |
Pending Billing |
|
|
BS-017 |
2/20/2024 |
3/19/2024 |
$150.00 |
2/20/2024 |
Contracted |
Pending Billing |
|
|
BS-018 |
3/20/2024 |
4/19/2024 |
$150.00 |
3/20/2024 |
Contracted |
Pending Billing |
|
|
BS-019 |
4/20/2024 |
5/19/2024 |
$150.00 |
4/20/2024 |
Contracted |
Pending Billing |
|
|
BS-020 |
5/20/2024 |
6/19/2024 |
$150.00 |
5/20/2024 |
Contracted |
Pending Billing |
|
|
BS-021 |
6/20/2024 |
7/19/2024 |
$150.00 |
6/20/2024 |
Contracted |
Pending Billing |
Conga Billing creates an informational billing schedule for the legacy period and other normal billing schedules for the rest of the billing tenure in Conga if the invoicing is done in a recurring manner in the legacy system.
