Renewing the Billing of a Product

Renewal of a product or service is a common and effective way to extend its subscription. During the renewal of a product or service, new billing schedule records (BSRs) are created for the renewal period as indicated on the order line item (OLI). If any schedules are still in pending status from the previous sale, they remain as is and are not impacted by the renewal process.

Prerequisites

• The Price Type field is Recurring.

• No custom plan is associated with the asset line item (ALI) or OLI.

For more on how Billing works on the Conga Platform, see  Understanding the Billing Architecture on Conga Platform.

Based on the pricing source chosen in the Billing Settings, the pricing information is fetched from the Order Line Item (OLI) or Asset Line Item (ALI). When the pricing source is set to OLI, Billing fetches all the information, including the pricing information, from the OLI. If the pricing source is set to ALI, Billing fetches the pricing information from the ALI. For more details on pricing sources, see Managing Pricing Source.

Use Case: Renewal of a Product or Service

After a product or service is renewed, and you initiate billing, the engine creates new BSRs and simultaneously updates various status, amount, and date-related fields on BH, BSRs, and BSDs.

Contact your admin to make this functionality available in your application so that clicking a button calls the billing services API.

At the end of the renewal process, 

• The start date and the end date on the BH are updated as per the current OLI. The original start date remains unchanged. 
• Billable Amount for the Current Order Line field on the BH shows how much amount is to be billed as a result of renewal operation.
• New BSRs are created in pending billing status. 
• New BSDs are created in pending status. The fee amount reflects the net price derived from the renewal OLI.

Consider the example:

Before renewal: During a new sale following fields are populated on the OLI.

You called the initiate billing API and it generated a BH, a BSR, and a BSD. The BH is in active status. The statuses of BSR and BSD are pending billing and pending respectively. You initiated invoicing so that the status of the BSR and its corresponding BSD is updated to invoiced. The  Total Invoice Amount fields on the BH are updated with the rolled-up fee amount from the BSD.

Billing header:

Billing schedule record:

Billing schedule details:

After Renewal: Say, you've initiated the renewal for another year. However, the price has doubled during the renewal. This results in a billable amount of USD 2,400.00 for the renewed period, thus resulting in a Total Contract Value (TCV) (Sales) of USD 3,600.00 (USD 1,200.00 from new sale + USD 2,400.00 from the renewal).

OLI: The Line Status field on the OLI is updated to Renewed and the start and end dates are updated accordingly.

Billing Header: Billing Start Date, Billing End Date, Billable Amount for Current Order Line, and Pending Invoice Amount fields are updated.

Billing Schedule Record: Two new BSRs are created.

Billing Schedule Detail: Two new BSDs are created.

Subsequent Renewals

When the OLI or ALI goes through multiple renewals, Billing creates renewal BSRs and populates the billing header information. 

For example, a recurring asset with yearly selling frequency undergoes multiple renewals as indicated:

For the above data, the billing services API generates the billing header (fewer fields are shown for clarity), billing schedule records, and billing schedule details as follows: