You can do a full-term cancellation of a one-time, recurring, or evergreen product when the billing schedule records (BSRs) are either invoiced or not invoiced.
Prerequisite
Same-day cancellation is set to True.
Understanding a full-term cancellation
When you execute the API for full-term cancellation, it updates the status of all the BSRs that are in pending billing or pending invoiced status to canceled status. For the BSRs that are invoiced, it creates a new BSR and BSD line with a negative fee amount equal to the fee amount of each BSR. If the BSR is in pending invoiced status, the corresponding invoice in draft status is also canceled.
You must contact your admin to make this functionality available in your application so that upon clicking a button you should be able to call the billing service API.
At the end of the cancellation process:
- The Line Status field on the current OLI is updated to Canceled.
- The Status field of the billing header is updated to Pending Inactivation.
- The fee amount on the Current Unbilled Amount field on the billing header shows the amount to be refunded.
The Invoice Status field of all pending BSRs is updated to Canceled. New BSRs are created for each invoiced BSR.
The Derived Invoice Status field on the billing schedule detail (BSD) is updated as Canceled. A new BSD is created for each BSR that is marked as Invoiced.
Consider the example:
During a new sale for a one-time OLI with a net price of USD 1,200.00, you initiated the billing so that a BH, a BSR, and a BSD are generated. The BH is in active status. The statuses of BSR and BSD are pending billing and pending respectively.
BH ID | OLI ID | Price Type | Period Start Date | Period End Date | Asset Line Item | Current Unbilled Amount | Total Invoice Amount | Pending Invoice Amount | Status |
|---|
BH-1 | OLI-1 | One-Time | 01-Oct-2023 | 30-Sep-2024 | Asset Line Item ID | USD 1,200.00 | USD 0.00 | USD 0.00 | Active |
Full-term cancellation when schedules are not invoiced: You initiated a full-term cancellation, then the BSRs and the BSDs are marked as canceled. The BH is marked as Pending Inactivation and the Pending Invoice Amount field is updated to USD 0.00 since there is nothing to refund.
Full-term cancellation when schedules are invoiced: Since the schedules are invoiced, the status of the BSR and its corresponding BSD are updated to invoiced. The Current Unbilled Amount and Total Invoice Amount fields on the BH are updated with the rolled-up fee amount (USD 1,200.00 in this case) from the BSD.
Say you want to cancel the order and initiated a full-term cancellation, as a result, the Line Status field on the OLI is updated to Canceled.
OLI ID | Order | Price Type | Asset Line Item | Line Status | Start Date | End Date | Cancelation Date | Status |
|---|
OLI-003 | O-003 | One-Time | Asset Line Item ID | Canceled | 01-Oct-23 | 01-Oct-23 | 01-Oct-23 | Activated |
The Status field on the BH is updated to Pending Inactivation, and the Current Unbilled Amount and Pending Invoice Amount fields are updated to USD -1,200.00 as a result of the rolled-up fee amount of the new BSD.
BH ID | OLI ID | Price Type | Period Start Date | Period End Date | Asset Line Item | Current Unbilled Amount | Total Invoice Amount | Pending Invoice Amount | Status |
|---|
BH-1 | OLI-1 | One-Time | 01-Oct-2023 | 30-Sep-2024 | Asset Line Item ID | USD -1,200.00 | USD 1,200.00 | USD -1,200.00 | Pending Inactivation |
A new BSR and BSD are created with the negative of the equal fee amount since the invoiced amount has to be refunded.
BSR ID | BH ID | Period Start Date | Period End Date | Ready for Invoice Date | Actual Fee Amount | Invoice Status | BSD ID | BSD Derived Invoice Status |
|---|
BSR-1 | BH-1 | 01-Oct-2023 | 30-Sep-2024 | 01-Oct-2023 | USD 1,200.00 | Cancelled | BSD-1 | Cancelled |
BSR-2 | BH-1 | 01-Oct-2023 | 30-Sep-2024 | 01-Oct-2023 | USD -1,200.00 | Pending Billing | BSD-2 | Pending |
