Advancing the Term of One-Time Products

When you request to advance the term of a one-time product 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 value in the Billable Amount for Current Order Line Item field is strictly USD 0.00.

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

Use Case: Advancing the Term

Initiating the billing for a one-time product creates a single billing schedule record (BSR) and billing schedule detail (BSD). When the contract date is advanced by a fixed period (by a quarter) the new billing period never aligns with the original schedule. For more details, refer to Billing Records for Change in Term.

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

When billing is initiated for a product or service subject to the advancement of the term:

• As the new period does not align with the original schedule, the application creates a new BSR and BSD for the latest period, Pending Billing status. It cancels or refunds the original BSR and BSD per their invoice status.
• The fee amount for a period is computed per the full or partial term of the BSR.
• For 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 for a one-time service is initiated with a TCV (Sales) of USD 1,200.00. The billing frequency is yearly. The start date is 01-July-2024 and the end date is 30-June-2025. Initiating the billing creates a billing header and one BSR with a fee of USD 1,200.00. 

New Sale

For a new sale, the billing header has the following data:

Only one BSR is generated as shown below:

After Change

Suppose the term is advanced by a quarter. 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 as shown below.

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

The application creates a new BSR for the latest period in Pending Billing status with a fee of USD 1,200.00. The existing BSR, BSR-1 is canceled. Counter-BSD, BSD-1.a is created to offset the positive fee amount of BSD-1.

The BSRs are:

The BSDs are:

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

The application creates a new BSR for the latest period in Pending Billing status with a fee of USD 1,200.00. The existing BSR, BSR-1 is canceled. No counter BSD is created.

The BSRs are: