Recurring Product - Quarterly Billing with Overlapping Period - Contract Term, TCV (Sales), or Both are Changed

The subscription is amended to push the contract's start and end dates out by two quarters. The amendment adds two quarters to the contract's end but doesn't truncate the same periods from the beginning of the contract. As a result, the contract term, TCV (Sales), or both are changed after the amendment.

For example, a subscription, with a quarterly billing frequency is sold for one year with a TCV (Sales) of USD 96,000.00. The contract start date is 01-July-2024 and the end date is 30-June-2025. The selling term is four (because the billing frequency is quarterly) and the net price is USD 24,000.00.

You want to move out (delay) the contract term by two quarters.

The subscription is amended to push the start and end dates by two quarters. Due to existing CPQ behavior, the start date remains 01-July-2024 (instead of 01-January-2025 ), however, the contract's end date is extended to 31-December-2025, resulting in a change in the contrac's term. Although TCV (Sales) has increased from USD 96,000.00 to USD 144,000.00, it remains unchanged because the net price for the period remains unaltered.

For this scenario, the original start date is still a part of the contract and the end date is moved out by two quarters and the change is applicable from the mentioned start date. It is illustrated in the following diagram:

Here, the billing application receives the payload for the amendment from an order or asset line item generated in Conga CPQ. 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 that there is no change in the start date. As a result, the billing header fields are updated as follows:

The BSRs are:

Setting "Superseding the Schedules during Asset Management" to Always Supersede

Setting "Superseding the Schedules during Asset Management" to Minimize

BSDs are: