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Renewing the Billing With a Custom Plan
During the renewal of a product or service, users may want to switch the billing of a recurring subscription from regular billing to custom billing. This is achieved by associating a custom plan to the billing header (BH) during the renewal process. Billing creates the renewal billing schedule records (BSRs) per the custom plan updated on the billing header.
the BSRs are created in a recurring fashion since there wasn't any custom plan. However, during the renewal, the customer opts for a customized billing hence there will be a custom plan on the BH post a renewal transaction. When initiated, the billing engine creates the renewal schedules as per the plan information.
For example, a new sale is initiated for a service with a TCV (Sales) of USD 1,200.00. The billing frequency is quarterly. 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. All the BSRs are invoiced.
New Sale
The billing header has the following data:
BH ID | Current OLI | Parent OLI | ALI | Custom Plan ID | Billing Start Date | Billing End Date | TCV (Sales) | Billable Amount for Current OLI | Total Invoiced Amount | Pending Invoice Amount | Status |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BH-1 | OLI-1 | OLI-1 | ALI-1 | Null | 01-July-2024 | 30-June-2025 | USD 1,200.00 | USD 1,200.00 | USD 1,200.00 | USD 0.00 | Active |
The four BSRs and BSDs contain the following data:
BSR ID | BSD ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status |
|---|---|---|---|---|---|---|---|
| BSR-1 | BSD-1 | Regular | Fee | 01-July-2024 | 30-September-2024 | USD 300.00 | Invoiced |
| BSR-2 | BSD-2 | Regular | Fee | 01-October-2024 | 31-December-2024 | USD 300.00 | Invoiced |
| BSR-3 | BSD-3 | Regular | Fee | 01-January-2025 | 31-March-2025 | USD 300.00 | Invoiced |
| BSR-4 | BSD-4 | Regular | Fee | 01-April-2025 | 30-June-2025 | USD 300.00 | Invoiced |
After renewal
During the renewal of the service, there was a change in the payment requirement and the customer decided to proceed with custom billing with three installments, rather than recurring billing. Hence the renewal is initiated with a custom plan associated with the billing header. The renewal term is one year starting from 01-July-2025 and the renewal TCV is USD 1,200.00. To learn more about custom plans, refer to Creating a Custom Plan.
The custom plan is activated and has the following details:
Order ID | Plan Template | Custom Plan ID | Name | Plan Type | Based On | Computation Method |
|---|---|---|---|---|---|---|
| O-1 | PT-1 | CP-1 | My Custom Plan 1 | Milestone | Percentage | Custom |
along with the plan line items showing the following fields:
Custom Plan ID | Plan line item ID | Percent | Milestone Expected Date | Payment Term |
|---|---|---|---|---|
| CP-1 | PLI-1 | 30 | 01-August-2025 | Term 1 |
| CP-1 | PLI-2 | 40 | 15-November-2025 | Term 1 |
| CP-1 | PLI-3 | 30 | 01-May-2026 | Term 1 |
Initiating the billing shows the custom plan ID on the BH. The Billing Start Date and Billing End Date fields are updated with the renewal start date and the end date. The TCV (Sales) field is updated with the sum of previous sales and the renewal amount. The billing header fields are updated as follows:
BH ID | Current OLI | Parent OLI | ALI | Custom Plan ID | 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 | CP-1 | 01-July-2025 | 30-June-2026 | USD 2,400.00 | USD 1,200.00 | USD 1,200.00 | USD 1,200.00 | Active |
Suppose you completed the BSD milestones and initiated the billing to create the BSRs as follows:
| BSR ID | BSD ID | Period Start Date | Period End date | Ready for Invoice Date | Actual Fee Amount | Invoice Status | Remarks |
|---|---|---|---|---|---|---|---|
| BSR-1 | BSD-1 | 01-July-2024 | 30-September-2024 | 01-July-2024 | USD 300.00 | Invoiced | |
| BSR-2 | BSD-2 | 01-October-2024 | 31-December-2024 | 01-October-2024 | USD 300.00 | Invoiced | |
| BSR-3 | BSD-3 | 01-January-2025 | 31-March-2025 | 01-January-2025 | USD 300.00 | Invoiced | |
| BSR-4 | BSD-4 | 01-April-2025 | 30-June-2025 | 01-April-2025 | USD 300.00 | Invoiced | |
| BSR-5 | BSD-5 | NA | NA | 01-August-2025 | USD 360.00 | Pending Billing | Renewal BSR |
| BSR-6 | BSD-6 | NA | NA | 15-November-2025 | USD 480.00 | Pending Billing | Renewal BSR |
| BSR-7 | BSD-7 | NA | NA | 01-May-2026 | USD 360.00 | Pending Billing | Renewal BSR |
The BSDs are as follows:
| BSD ID | BSR ID | Record Type | Category | Period Start Date | Period End date | Milestone Status | Actual Fee Amount | Derived Invoice Status | Remarks |
|---|---|---|---|---|---|---|---|---|---|
| BSD-1 | BSR-1 | Regular | Fee | 01-July-2024 | 30-September-2024 | NA | USD 300.00 | Invoiced | |
| BSD-2 | BSR-2 | Regular | Fee | 01-October-2024 | 31-December-2024 | NA | USD 300.00 | Invoiced | |
| BSD-3 | BSR-3 | Regular | Fee | 01-January-2025 | 31-March-2025 | NA | USD 300.00 | Invoiced | |
| BSD-4 | BSR-4 | Regular | Fee | 01-April-2025 | 30-June-2025 | NA | USD 300.00 | Invoiced | |
| BSD-5 | BSR-5 | Milestone | Fee | NA | NA | Completed | USD 360.00 | Pending | Renewal BSD |
| BSD-6 | BSR-6 | Milestone | Fee | NA | NA | Completed | USD 480.00 | Pending | Renewal BSD |
| BSD-7 | BSR-7 | Milestone | Fee | NA | NA | Completed | USD 360.00 | Pending | Renewal BSD |