Billing Plans for Terminated Assets

Asset termination is of two types:

Full-term Termination
Mid-term Termination

Full-term Termination

In full-term asset termination, the cancellation date of the asset is equal to the Asset Start Date.

Use Case: Full Term Asset Termination

Description: This use case describes the effect of full-term asset termination on billing schedules when a billing plan was used to bill the customer.

Suppose you are a billing administrator of a company selling computer hardware and you need to terminate a customer’s standalone product ‘Installation Device MF9’ costing $4,000,000. The customer was billed in 3 instalments and the billing plan was configured as follows:

Billing Plan Name	Plan Type	Billing Method	Number of Instalments
Billing Plan BP1	Full Term	Amount	3

Pre-requisite: Make sure the quote is associated with an appropriate billing plan and the asset is activated.

Before termination, the asset line item is as follows:

Product	Start Date	End Date	Net Price	Asset TCV
Installation Device MF9	1/1/2018	31/12/2018	$4,000,000	$4,000,000

Before termination, you see the following billing schedules:

Billing Schedule	Period Start Date	Period End Date	Ready for Invoice Date	Fee Amount	Status
BS1	1/1/2018	31/12/2018	15/1/2018	$1,500,000	Invoiced
BS2	1/1/2018	31/12/2018	10/3/2018	$1,500,000	Pending Billing
BS3	1/1/2018	31/12/2018	22/6/2018	$1,000,000	Pending Billing

To perform a full term asset termination using the ABO flow, perform the following steps:

Create a new quote for the same account.
Click Config Products.
On the installed products page, select the asset Item and click Terminate.
Enter end date as the start date of the asset.
Finalize the Quote.
Activate the order.

Result:

New billing schedules are created as under:

Billing Schedule	Period Start Date	Period End Date	Ready for Invoice Date	Fee Amount	Status
BS1	1/1/2018	31/12/2018	15/1/2018	$375,000	Invoiced
BS2	1/1/2018	31/12/2018	10/3/2018	$375,000	Superseded
BS3	1/1/2018	31/12/2018	22/6/2018	$250,000	Superseded
BS4	1/1/2018	31/12/2018	15/1/2018	$936,500	Pending Billing
BS5	1/1/2018	31/12/2018	10/3/2018	$937,500	Pending Billing
BS6	1/1/2018	31/12/2018	22/6/2018	$625,000	Pending Billing

After asset termination, the asset line item is as follows:

Product	Start Date	End Date	Net Price	Asset TCV
Installation Device MF9	1/1/2018	1/1/2018	$0	$0

Remaining billable amount is $2,500,00.

Mid-term Termination

In mid-term asset termination, the cancellation date is any date between the asset start date and asset end date.

Use Case: Mid-Term Asset Termination

Description: This use case describes the effect of mid-term asset termination on billing schedules when a billing plan was used to bill the customer.

Suppose you are a billing administrator of a company selling computer hardware and you need to terminate a customer’s one-time product ‘Installation Device MF9’ costing $4,000,000. The customer was billed in 3 instalments and the billing plan was configured as follows:

Billing Plan Name	Plan Type	Billing Method	Number of Instalments
Billing Plan BP1	Full Term	Amount	3

Prerequisite: Make sure the quote is associated with an appropriate billing plan and the asset is activated.