For Asset-based transactions, you can create a new billing plan and associate it with your new quote/Proposal. If you do not create a new billing plan, billing schedules are auto-adjusted based on the existing billing plans.
If you create a new billing plan to generate billing schedules for asset-based operations after the initial billing schedules were invoiced, the new billing schedules for the remaining term are created based on the new billing plan.
After changing a quote, you need to manually reattach the billing plan to the proposal line item.
You can not add two billing plans to a single asset line item. You have to delete the already associated billing plan and then add a new one. If you directly add a new billing plan then it will replace the existing associated billing plan for that asset line item.
Scenario: Reducing the Term of the Asset
If you reduce the term of the asset and do not create a new billing plan, negative billing schedules that are auto-adjusted based on the existing billing plan are created.
Scenario: Increasing the Term of the Asset
If you increase the term of the asset and do not create a new billing plan, the newly created billing schedules are auto-adjusted based on the existing billing plan. Conga recommends using a new Billing Plan for each asset-based transaction.
Use Case: Creating New Billing Plan for an Asset Based Transaction
Description: This use case describes how you can create and associate a new billing plan to your Quote/Proposal when you perform an asset-based transaction.
Suppose you are a billing administrator of a company selling software services and you need to change the start date of your customer's subscription service. After changing the start date you want to bill the customer in 2 installments. The customer was initially billed in 3 installments and the billing plan was configured as follows:
| | | |
|---|
| 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 modification the asset line item is as follows:
| | | |
|---|
| 1/1/2018 | 31/12/2018 | $1,000,000 | $1,000,000 |
Before termination, you see the following billing schedules:
| | | | | |
|---|
| BS1 | 1/1/2018 | 31/12/2018 | 15/1/2018 | $375,000 | Invoiced |
| BS2 | 1/1/2018 | 31/12/2018 | 10/6/2018 | $375,000 | Pending Billing |
| BS3 | 1/1/2018 | 31/12/2018 | 22/3/2018 | $375,000 | Pending Billing |
Modify the asset as follows:
- Create a new quote for the same account.
- Click Config Products.
- On the installed products page, select the asset Item and click Change
- Enter start date as 15/3/2018.
- Finalize the Quote.
After Modification, the asset line item is as follows:
| | | |
|---|
| 15/3/2018 | 31/12/2018 | $895,700 | $1,000,000 |
- On the quote page, click New Billing Plan.
- Select the line item.
Define the new Billing Plan as follows:
Define the Invoice Date and Amount as follows:
| Billing Plan Item Name | Invoice Date | Payment Term | Amount | Percent |
|---|
| Installment 1 | 15/6/2018 | Net 30 | $500,000 | 68.96 |
| Installment 2 | 10/9/2018 | Net 30 | $225,000 | 31.03 |
- Click Save.
- Activate the order.
Result:
New billing schedules are created as under:
| | | | | |
|---|
| BS1 | 1/1/2018 | 31/12/2018 | 15/1/2018 | $375,000 | Invoiced |
| BS2 | 1/1/2018 | 31/12/2018 | 10/6/2018 | $375,000 | Superseded |
| BS3 | 1/1/2018 | 31/12/2018 | 22/3/2018 | $250,000 | Superseded |
| BS4 | 1/1/2018 | 15/3/2018 | 15/1/2018 | $500,000 | Pending Billing |
| BS5 | 1/1/2018 | 15/3/2018 | 10/6/2018 | $225,000 | Pending Billing |
