Understanding the Swap Functionality

The swap functionality enables you to replace one product or service with another product or service. When you swap a product or service with another product or service:

• The status of the old product or service is updated to Cancelled and its billing header is marked as Pending Inactivation
• The status of the new product or service is updated to Upgraded and a new billing header, similar to new sales, is created.

Conga Billing supports swapping products or services with one-time and recurring Price Types.

Prerequisites

• The swap operation is executed in the upstream system (CPQ or Order Management). The payload data of assets, products, or services with the appropriate statuses, is sent to the billing application.
• The pricing source is the asset line item (ALI).

Use Case: Swapping the Products

You can upgrade to a new product or service by exchanging the existing product or service with a new one.

Contact your admin to make this functionality available in your application so that clicking a button calls the billing services API.

When billing is initiated for a set of assets, products, or services subject to a swap operation:

• For the existing product or service
  • The status is updated to Cancelled.
  • The billing header is set to pending inactivation.
  • The billing schedule records (BSRs) and billing schedule details (BSDs), that are not part of the contract period are canceled or refunded per their invoice status.
• For the new product or service
  • The status is updated to Upgraded.
  • A new billing header is created similar to a new sales.
  • New BSRs and BSDs are created in Pending Billing status.
  • The TCV (Sales) is calculated based on the values in the Selling Term and the Net Price fields.

For example, a new sale with a quarterly billing frequency 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 Sale

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 swapping

You want to exchange your existing service with another service from the start of the next quarter. Initiating the billing creates separate billing headers and schedules for both services. 

Existing service

The billing end date is 30-September-2024 and the TCV (Sales) is USD 300.00. All the BSRs and BSDs after September 2024 are canceled.

The billing header has the following data:

The data of the BSRs and BSDs are shown in the table:

 New Service

The new service has a net price of USD 1,500.00 and it replaces the existing service from 01-Oct-2024 for the rest of the contract. The selling term is auto-calculated to 0.75. Based on the selling term, the new service has a TCV (Sales) of USD 1,125.00, calculated by the upstream selling system (like CPQ or Order Management), and the billing application bills it as per the payload data received.

The billing header has the following data:

The data of the BSRs and BSDs are shown in the table: