Use Case: Mid-Period Cancellation When the Impacted Schedule is Invoiced

When you execute the API for mid-period cancellation, 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 order line item's (OLI's) or asset line item's (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 before the cancellation dates remain unchanged. 

• The impacted BSR and its accompanying BSDs in invoiced status also remain unchanged. The adjustment BSD also remains unchanged.
• A new BSR and accompanying BSD are created in Pending Billing status for the cancellation period. The fee amount reflects the refund amount due to cancellation. There is no refund for any adjustments during this period.

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

• The billing header shows the OLI that initiates the cancellation of the service and its status is updated to Pending Inactivation.
• The billing header's Billable Amount for 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 monthly. The start date is 01-July-2024 and the end date is 30-June-2025.

You initiate the billing to create a billing header and twelve BSRs with a fee amount of USD 100.00 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-July-2024, 01-January-2025, and 01-June-2025 respectively. 

Suppose you invoiced the first seven BSRs (BSR-1 to BSR-7). The billing header looks like a normal BH showing the following data:

The data of the twelve BSRs and BSDs are shown in the table:

After Cancellation:

You canceled the product or service such that the cancellation goes into effect from 16 January 2025. The Current OLI and Current Order Number fields on the BH are updated to the newly activated OLI 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 canceled amount. 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 such that the cancellation goes into effect from 16-January-2025. 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 BSR that is impacted (here BSR-7 and its BSD) also remains unchanged because it is invoiced. In place of the impacted BSR, a new BSR-13 and BSD-13 are created in Pending Billing status for the canceled period. The fee amount of this BSR-13 is equal to the refund amount. No refund is granted for the adjustment for the impacted BSR-7, hence no adjustment BSD is created for refunding the adjustment amount in the cancellation period.

All other BSRs and 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.

The BSRs 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.

You have canceled the order such that the cancellation goes into effect from 16-January-2025. 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 BSR that is impacted (here BSR-7 and its BSD) also remains unchanged because it is invoiced. In place of the impacted BSR, a new BSR-13 and BSD-13 are created in Pending Billing status for the canceled period. The fee amount of this BSR-13 is equal to the refund amount. No refund is granted for the adjustment for the impacted BSR-7, hence no adjustment BSD is created for refunding the adjustment amount in the cancellation period.

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