Advancing the Term for Recurring Products With Overlapping Periods

When you request to advance the term of a recurring product with overlapping periods to the Change endpoint, Billing modifies the fields on the activated billing header per the change request or displays an error message.

Prerequisites

• The Superseding the Schedules during Asset Management setting is set to Always Supersede or Minimize.
• The current OLI's or ALI's Delta Price field is strictly populated to USD 0.00.

• The selling term remains the same as the previous sale.

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

Use Case: Advancing the Term With Overlapping the Periods

The contract dates are advanced by absolute terms so that most billing periods overlap and remain unchanged. For more details, refer to Billing Records for Change in Term.

At the end of the process:

• For the new periods added due to the advancement of the term, the application creates new billing schedule records (BSRs) and billing schedule details (BSDs) in Pending Billing status. The fee amount is computed per the full or partial term of that BSR.
• For the periods that remain unchanged or overlap with the prior periods in the same date range, the application retains the existing BSRs and BSDs irrespective of their invoice status.
• For the truncated periods or the periods that are not a part of the contract after the change, the application cancels the billing schedules depending on their invoice status and the setting, Superseding the Schedules during Asset Management set to Always Supersede or Minimize. For more details, refer to Effect of the Custom Setting on the Creation of Refund Schedules.
• On the billing header (BH),
  • The values in the Billing Start Date, Billing End Date, and Billable Amount from the Current Order Line fields are updated to the corresponding values from the current OLI or ALI fields.
  • The values in the Selling Term and TCV (Sales) fields remain unchanged.

For 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-July-2024 and the end date is 30-June-2025. Initiating the billing creates a billing header and four BSRs with a fee of USD 300.00 each. 

New Sale

During the new sale, you invoiced BSRs 1 through 3. The billing header has the following data:

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

After Change

Suppose the term is advanced by one quarter, i.e. the billing start date is now 01-April-2024 and the billing end date is 31-March-2025. Send this term change to the existing billing header using a new OLI. When the OLI is activated and is initiated for billing, the billing engine applies the term changes to the header and adjusts the schedules as shown below.

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

The application creates a new BSR-5 in Pending Billing status with a fee of USD 300.00. The period that is not affected by the change operation (BSR-1 to BSR-3) remains unchanged. The truncated period (BSR-4) is marked canceled. Since BSD-4 is in Pending Billing status, counter-BSD, BSD-4.a is created to offset the positive fee amount of BSD-4.

The BSRs are as shown:

The BSDs are as shown:

Scenario 1: Setting "Superseding the Schedules during Asset Management" to Always Supersede.

The application creates a new BSR-5 in Pending Billing status with a fee of USD 300.00. The period that is not affected by the change operation (BSR-1 to BSR-3) remains unchanged. The truncated period (BSR-4) is marked canceled. No counter-BSDs are created.

The BSRs and BSDs are: