The subscription is amended to push the contract's start and end dates out by one month. Here, the billing application receives the payload for the amendment from an order or asset line item generated in an external system. The application adds one month to the end of the contract and truncates one month from the start of the contract. As a result, the contract term remains unchanged after the amendment. However, the billing period after the amendment does not align with the existing periods, disrupting the billing schedule record (BSR).
For example, a recurring multi-year subscription with a 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.
The subscription is amended to push the start and end dates of the contract by one month. The start date becomes 01-August-2024 and the end date becomes 3. Because the contract dates are changed, the newly created period does not align with the existing one. This disrupts the existing BSR and a new BSR is created for amended periods. It is illustrated in the following :
The order details after the 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 | 01-August-2024 | 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 billing start date (01-August-2024) from when the change is effective. As a result, the billing header fields are updated as follows:
BH ID | Current OLI | Parent OLI | ALI | Billing Frequency | 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 | One-time | 01-August-2024 | 31-July-2027 | USD 288,000.00 | USD 0.00 | USD 0.00 | USD 288,000.00 | Active |
The BSR is 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 BSRs and BSDs 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-August-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-August-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-August-2024 | 31-July-2027 | USD 288,000.00 | Pending | Additional BSD, BSD-2 is created for a newer period because of the change operation. |