The subscription is amended to push th. Here, the billing application receives the payload for the amendment from an order or asset line item generated in Conga CPQ. The amendment adds one month to the contract's end but doesn't truncate one month from the beginning of the contract. As a result, the contract term is changed after the amendment. The billing period after the amendment does not match with the existing period, disrupting the billing schedule record (BSR).
This is a typical behavior of Conga CPQ where the application extends the contract end date by a definite period but does not truncate the same duration from the start of the contract. This leads to an inflated contract period.
For example, a one-time product with a multi-year subscription and one-time billing frequency is sold for three years with a TCV (Sales) of USD 288,000.00. The contract start date is 01-July-2024 and the end date is 30-June-2027. You want to amend the subscription to push the start and .
Due to existing CPQ behavior, the start date remains 01-July-2024 (instead of 01-August-2024 ), however, the contract's end date is extended to 31-July-2027. The date range is changed so that the new period does not match with the existing ones. This disrupts the existing BSR and a new BSR is created for the amended period. It is illustrated in the following :
The order details after amendment are summarized in the following table:
Selling Term | TCV (Sales) | Net Unit Price | Start Date | End Date | Effective Start Date | Price Type | Billing Frequency |
|---|
| 1.00000000 | USD 288,000.00 | USD 288,000.00 | 01-August-2024 | 31-July-2027 | Null | One-time | One-time |
When the application processes this line item per the request, it uses the value in the Effective Start Date field on the order line item (OLI) as the start date (null here) indicating no change in the start date. As a result, the billing header fields are updated as follows:
BH ID | Current OLI | Parent OLI | ALI | Billing Start Date | Billing End Date | TCV (Sales) | Billable Amount for Current OLI | Total Invoiced Amount | Pending Invoice Amount | Status |
|---|
| BH-1 | OLI-12 | OLI-1 | ALI-1 | 01-July-2024 | 31-July-2027 | USD 288,000.00 | USD 0.00 | USD 0.00 | USD 288,000.00 | Active |
The BSRs are generated differently, based on the setting Superseding the Schedules during Asset Management is set to Always Supersede or Minimize, as shown below:
When the setting "Superseding the Schedules during Asset Management" is set to Always Supersede.
The BSR and BSD are:
BSR ID | BSD ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status | Remarks |
|---|
| BSR-1 | BSD-1 | Regular | Fee | 01-July-2024 | 30-June-2027 | USD 288,000.00 | Superseded | BSR-1 is not valid, so it is superseded. |
| BSR-2 | BSD-2 | Regular | Fee | 01-July-2024 | 31-July-2027 | USD 288,000.00 | Pending Billing | Additional BSR, BSR-2 is created for a newer period because of the change operation. |
When the setting "Superseding the Schedules during Asset Management" is set to Minimize.
The BSRs are:
BSR ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status | Remarks |
|---|
| BSR-1 | Regular | Fee | 01-July-2024 | 30-June-2027 | USD 0.00 | Superseded | BSR-1 is not valid, so it is superseded. The fee is USD 0.00, the sum of BSD-1 and its counter-BSD, BSD-1a. |
| BSR-2 | Regular | Fee | 01-July-2024 | 31-July-2027 | USD 288,000.00 | Pending Billing | Additional BSR, BSR-2 is created for a newer period because of the change operation. |
The BSDs are:
BSD ID | BSR ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Derived Invoice Status | Remarks |
|---|
| BSD-1 | BSR-1 | Regular | Fee | 01-July-2024 | 30-June-2027 | USD 288,000.00 | Superseded | BSD-1 is not valid, hence superseded. |
| BSD-1.a | Regular | Fee | 01-July-2024 | 30-June-2027 | (USD 288,000.00) | Superseded | Counter-BSD for the canceled BSD-1, BSD-1.a can be used to offset the revenue forecast from the previous BSD-1. |
| BSD-2 | BSR-2 | Regular | Fee | 01-July-2024 | 31-July-2027 | USD 288,000.00 | Pending | Additional BSD, BSD-2 is created for a newer period because of the change operation. |
