Advancing the Term of Recurring Products Without Overlapping Periods

When you request to advance the term of a recurring product without overlapping the 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 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 Without Overlapping the Periods

The contract dates are advanced randomly so that the new billing periods do not align 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.

At the end of the process:

• As the new periods do not align with the original schedule, the application cancels or refunds all the billing schedule records BSRs and billing schedule details (BSDs) (depending on their invoice status) for the original period and creates new BSRs and BSDs for the new periods.
• The new BSRs and BSDs are in Pending Billing status. The fee amount is computed per the full or partial term of that 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 is initiated for a service with a TCV (Sales) of USD 1,200.00. 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 sales with quarterly billing frequency 

During the new sale, you invoiced BSR-1. 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 a quarter, so the new billing periods do not align 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 as shown below.

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

The application creates four new BSRs for the new periods in Pending Billing status with a fee of USD 300.00 each. The BSR-1, which is in Invoiced status, remains unchanged. A new BSR-5 is created to refund the fee amount of BSR-1. Other BSRs in Pending Billing status (BSR-2 to BSR-4) are canceled. Counter-BSDs, BSD-2.a, BSD-3.a and BSD-4.a is created to offset the positive fee amount of BSD-2, BSD-3, and BSD-4.

The BSRs are as shown:

The BSDs are as shown:

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

The application creates four new BSRs for the new periods in Pending Billing status with a fee of USD 300.00 each. The BSR-1, which is in Invoiced status, remains unchanged. A new BSR-5 is created to refund the fee amount of BSR-1. Other BSRs in Pending Billing status (BSR-2 to BSR-3) are canceled. No counter-BSDs are created.

The BSRs and BSDs are:

New sales with a yearly billing frequency

Yearly billing frequency implies that the sale of the product or service happens every year and upon initiating the billing, the application creates only one schedule for the entire term.

The output remains the same if the billing frequency is changed to one-time with or without proration.

Considering the above example, the billing header has the following data:

Only one BSR is generated due to the yearly billing frequency 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 as shown:

The BSDs are as shown:

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 and BSDs are as shown: