Billing the Evergreen Assets

Evergreen subscriptions do not end automatically. Like normal evergreen assets, subscriptions for legacy evergreen assets are persistent unless explicitly canceled. 

The Auto-Renewal and Evergreen Billing functionality operates the same as normal evergreen assets. For more information refer to Billing for Evergreen Assets.

Prerequisites

• The object and fields required to support legacy billing for legacy asset line items are configured. For more information, see Understanding Billing Schedules and Billing System Properties.
• The following minimum criteria are met: 
  • The Is Legacy for Billing checkbox is set to True.
  • The Price Type is not Usages.
  • Billing Frequency is not One Time.
• The Original Start Date, Start Date, End Date, Remaining Billable Amount, TCV, Selling Term, and CPQ Pricing fields (Base Unit Price and Net Price) are captured accurately on the asset line record.

Consider the following for evergreen assets:

• The asset line item is billed recurrently in the legacy system. This implies that the asset has been billed consistently in the legacy period where the remaining billable amount is in accordance with the formula:
                remaining billable amount= (net unit price * quantity * billing term).
• If the billing is not done in a recurring fashion, Conga Billing will create a catchup amount and a corresponding redundant billing schedule.

To bill evergreen legacy assets 

To bill evergreen legacy assets, follow the following steps:

1. Define an asset per the guidelines given for recurring products by CPQ. For more information, see Creating Price List Items.

   

   On the Price List Item page, define:

   • Auto Renew: Select this checkbox.
   • Auto-Renewal Type: Set the value to Evergreen.
   • Renewal Term: Set a suitable value, 6 for this example.

2. Perform the CPQ flow to generate an asset line item, order, and order line item.

   

   Disable all functionalities associated with auto-activating the order in your org.

3. Make sure that the below data points are populated in the asset line item record.
   
   • Remaining Billable Amount
   • Is Legacy for Billing?
   • First Billing Date
4. Activate the order manually. If the Initiate Billing on Order Activation custom setting is set to True, you must initiate billing by populating the Ready for Billing Date field on the corresponding order line item or order.

5. Conga Billing creates a number of billing schedules depending on the billing term. The first billing schedule is for the legacy period,  with the Type field set to "Informational" and the Status field set to "Invoiced". On subsequent normal billing schedules, the Type field is set to "Contracted" and the Status field to "Pending Billing".
   

   

   If the billing is not recurrent, Conga Billing does not recognize these invoices and introduces the second billing schedule for a Catchup amount with the Type set to "Contracted" and Status set to "Pending Billing".

   
   

After you have invoiced a few billing schedules, clicking Refresh Evergreen Billing on the asset detail page creates more billing schedules, depending on the auto-renewal term you set. See the following example.

Example

Suppose you are a billing administrator of a company selling computer hardware with a Total Contract Value (TCV) of $5400 for 36 billing terms. You have already invoiced the customer for $2400 over a 16-months billing period and the remaining billable amount is $3000, to be billed over 20 months. The legacy contract was started in 2018 but the last known major price or config happened on 7/20/21. So the asset's start date is 7/20/21. The first billing date is 11/20/0222.

Conga Billing creates billing schedule BS-001 with the amount already invoiced in the legacy system and the type set to Informational. Conga Billing sets subsequent normal billing schedules for 20 months, with the type set to Contracted. Suppose you have invoiced 16 billing schedules. You have set the Auto-Renewal Term to 6. Clicking the Refresh Evergreen Billing on the asset detail page, creates two more billing schedules (BS-022 and BS-023) having a pending billing status.

Since Auto Renewal Term is set to 6 and you have four billing schedules with a Pending Billing status, clicking Refresh Evergreen Billing creates two new billing schedules with a Pending Billing status.