Renewing the Billing of a Product

Renewal of a product or service is a common and effective way to extend its subscription. During the renewal of a product or service, new billing schedule records (BSRs) are created for the renewal period as indicated on the OLI. If any schedules are still in pending status from the previous sale, they remain as is and are not impacted by the renewal process.

Prerequisites

• An order is created from CPQ.
• The Price Type field is Recurring.

After a product, service, or asset line item is renewed, and you initiate billing, the engine creates new BSRs and simultaneously updates various status, amount, and date-related fields on OLI, BH, BSRs, and BSDs. At the end of the renewal process, 

• The start date and the end date on the BH are updated as per the current OLI. The original start date remains unchanged. 
• Billable Amount for the Current Order Line field on the BH shows how much amount is to be billed as a result of renewal operation.
• The total invoice amount on the BH remains the same.
• New BSRs are created in pending billing status. 
• New BSDs are created in pending status. The fee amount reflects the net price derived from the renewal OLI.

Consider the example:

Before renewal: During a new sale following fields are populated on the OLI.

You called the initiate billing API and it generated a BH, a BSR, and a BSD. The BH is in active status. The statuses of BSR and BSD are pending billing and pending respectively. You initiated invoicing so that the status of the BSR and its corresponding BSD is updated to invoiced. The  Current Unbilled Amount and Total Invoice Amount fields on the BH are updated with the rolled-up fee amount from the BSD.

Billing Header:

BillingSschedule Record:

Billing Schedule Detail:

After Renewal: Say, you've initiated the renewal for another year. However, the price has doubled during the renewal. This results in a billable amount of USD 2,400.00 for the renewed period, thus resulting in a Total Contract Value (TCV) of USD 3,600.00 (USD 1,200.00 from new sale + USD 2,400.00 from the renewal).

OLI: The Line Status field on the OLI is updated to Renewed and the start and end dates are updated accordingly.

Billing Header: Start Date, End Date, Billable Amount for Current Order Line, and Pending Invoice Amount fields are updated.

Billing Schedule Record: Two new BSRs are created.

Billing Schedule Detail: Two new BSDs are created.