Use Case: Cancellation at Period Start When the Impacted Schedule is 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 schedule records invoiced before their cancellation dates remain unchanged. 

• For each of the invoiced BSRs in the cancellation period, new BSRs and accompanying BSDs are created. The fee amount of the newly created BSRs and BSDs equals the refund amount of the canceled BSRs.
• Any Adjustments to the BSDs (accompanying the invoiced BSRs) in the cancellation period are refunded.

• All BSRs in the cancellation period with a Pending Billing status are Canceled. Accompanying BSDs are also canceled.

• The billing header's status is updated to Pending Inactivation. It shows the OLI that initiates the cancellation of the service.
• The billable amount on the Billing Header's 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 billing header fields, see Billing Header.

Consider the example:

A new sale is initiated for a service with a TCV (Sales) 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 initiate the billing to create a billing header and four BSRs with a fee amount of USD 300.00 each.

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.

Suppose you invoiced BSR-1, BSR-2, and BSR-3. The billing header displays 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 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 Invoiced and Pending Billing BSRs. 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.

After cancellation, various fields on the BH are updated as follows:

At the end of the cancellation process, the BSRs before the cancellation date remain in Invoiced status. For the invoiced BSR for the period starting 01-July-2024, a new BSR is created with the refund amount. The BSRs in the Pending Billing status after the cancellation date are marked as canceled.  

At the end of the cancellation process, the BSDs and adjustment BSDs before the cancellation date remain in Invoiced status. For the invoiced BSD for the period starting 01-July-2024, a new BSD is created with the refund amount. The BSDs and adjustment BSDs in the Pending Billing status after the cancellation date are marked as canceled. 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.

After cancellation, various fields on the BH are updated as follows:

At the end of the cancellation process, the BSRs and BSDs before the cancellation date remain unchanged. The BSR that is impacted (here BSR-3 and its BSD) also remains unchanged because it is invoiced. In place of the impacted BSR, a new BSR and BSD are created in Pending Billing status for the canceled period. The fee amount of this BSR is equal to the refund amount. 

All other BSRs and BSDs in the Pending Billing status after the cancellation date are marked as canceled.