Use Case: Cancelation at Period Start When the Impacted Schedule is Not Invoiced

When you execute the API for cancellation at the period start date, Billing validates the amount to be canceled. On successful validation, it invokes the cancellation process to execute the cancellation steps on the existing billing header. 

Prerequisites

• The cancellation date is not null and is in the range of the OLI's or ALI's start and end date.
• The setting "Superseding the Schedules during Asset Management" is set to Minimize or Always Supersede.

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 cancellation process:

•  Billing schedules records till the cancelation date remain as is. 

•  All billing schedules in the cancellation period with a status of Pending Billing are marked as Canceled. Accompanying BSDs and their Adjustments are also canceled.

• The billing header is marked as Pending Inactivation. It shows the OLI that initiates the cancellation of the service.
• The Billable Amount on the Current Order Line Item field shows the amount to be canceled.
• If any adjustment BSDs are canceled, the Total Adjusted Amount field is updated accordingly. For more information about the fields of the billing header, see Billing Header.

Consider the example,

A new sale is initiated for a service with a TCV of USD 1,200.00. The billing frequency is quarterly. The start date is 01-January-2024 and the end date is 31-December-2024.

You initiated the billing so that the billing header and four BSRs with a fee amount of USD 300.00 each are created. You created three adjustment BSDs with a fee amount of USD 100.00, USD 100.00, and USD 50.00 for the period, starting 01-January-2024, 01-July-2024, and 01-October-2024 respectively. Because of the adjustments, the fee amounts of BSR-1, BSR-3, and BSR-4 are updated to USD 400.00, USD 400.00, and USD 350.00 respectively.

You have invoiced BSR-1 and BSR-2. The billing header shows the following data:

The data of the four BSRs and BSDs along with the adjustment BSDs are shown in the table:

After Cancellation

You canceled the product or service on the period start date so the cancellation goes into effect from 01-July-2024. The Current OLI and Current Order Number fields on the BH are updated to the newly activated OLI which is used to initiate the cancellation process. The End Date field on the BH is updated to the product or service cancellation date. The TCV (Sales) field is updated to show the sum of the Previous TCV (Sales) value and Billable Amount from the Current Order Line. The Billable Amount for Current OLI field shows the amount to be canceled. The Total Invoiced Amount field shows the roll-up of the BSRs in the Invoiced status. The Status field on the BH is updated to Pending Inactivation.

Scenario 1: Setting "Superseding the Schedules during Asset Management" is set to Minimize.

You have canceled the order so the cancellation goes into effect from 01-July-2024.  After cancellation, various fields on the BH are updated as follows:

At the end of the cancellation process, the BSRs, BSDs, and adjustment BSDs before the cancellation date remain in Invoiced status while the BSRs in the cancellation period are marked as canceled. The fee amount of canceled BSRs is USD 0.00 due to the sum of the roll-up amount of the actual BSDs and the counter BSDs.

Counter BSDs are created for records that are canceled in pending billing status. These BSDs can be used to offset the revenue forecast from the previous BSDs of the same period.

Scenario 2: Setting "Superseding the Schedules during Asset Management" is set to Always Supersede.

You have canceled the order so the cancellation goes into effect from 01-July-2024. After cancellation, various fields on the BH are updated as follows:

At the end of the cancellation process, the BSRs and BSDs, and adjustment BSDs before the cancellation date remain unchanged. The BSRs, BSDs and adjustment BSDs that are impacted by the cancellation process are in Pending Billing status, so they are canceled.