About Advancing the Term of Evergreen Products

Evergreen products are recurring products with subscriptions that do not end until cancellation. You can amend an evergreen product to advance its contract term. While doing the amendment, the value in the Billable Amount for Current Order Line Item field must be strictly USD 0.00, and the selling term must remain the same as the previous sale. Advancing the term could lead to scenarios where the billing periods overlap or do not overlap.

The setting, Superseding the Schedules during Asset Management setting is set to Always Supersede or Minimize.

Advancing the term where periods overlap: The contract dates are advanced so that the new billing periods align with the original schedule. The application retains the original billing schedule records (BSRs) and billing schedule details (BSDs) and creates new BSRs and BSDs for the advanced period. For more information, see Advancing the Term for Recurring Products With Overlapping Periods.

Advancing the term where periods do not overlap: The contract dates are advanced randomly so that the new billing periods do not align with the original schedule. Because the new periods do not align with the original schedule, the application cancels or refunds all the original BSRs and BSDs (depending on their invoice status) and creates new BSRs and BSDs for the latest periods. For more information, see Advancing the Term of Recurring Products Without Overlapping Periods.

In both cases, if the last billing period is partial, the application extends the billing end date of the contract so that the partial period becomes a full period with a fee equal to that of a full period. Due to the extension in the contract term, the application auto-updates the following fields on the billing header:

• Billing End Date
• TCV (Sales)

• Billable Amount on the Current Order Line Item

For example, a new sale is initiated for an evergreen service with a TCV (Sales) of USD 1,200.00. The billing frequency is quarterly. The start date is 01-July-2024 and the end date is 30-June-2025. January is set as the calendar start month. Initiating the billing creates a billing header and four BSRs with a fee of USD 300.00 each. 

New Sale

During the new sale, the billing header has the following data:

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

Advancing the term where periods overlap with each other

Suppose the term is advanced by a quarter, so the new billing periods overlap with the original schedule. The billing start date is 01-May-2024 and the billing end date is 30-April-2025. You sent this term change to the existing billing header using a new OLI. When the OLI is activated and initiated for billing, the billing engine applies the term changes to the header and adjusts the schedules.

Because January is set as the calendar start month, it interferes with the normal creation of schedules. for more information, see Effect of Calendar Cycle Start on the Billing Schedule Records. Due to this, the first and the last billing periods become partial periods. The first period has two months while the last period has only one month instead of three months each. As mentioned earlier, if the last period is a partial period, the application extends the contract end date so that the last partial period becomes a full period with a fee equal to that of a full period. As a result, the billing header's Billing End Date, TCV (Sales), and Billable Amount on the Current Order Line Item fields are auto-updated.

Initiating the billing generates the billing header and new schedules as shown below:

The BSRs are: