Changing Billing Schedules when you change the Billing Frequency of an Asset

Example 1

You are a customer service representative for a software company and you must change the Billing frequency from Quarterly to Monthly for a customer's software subscription plan, mid-cycle when the status of each Billing Schedule is Pending Billing.

Before you change the Billing frequency of the subscription from Quarterly to Monthly, you see the following Billing Schedules.

Schedule	Period Start	Period End	Status	Fee Amount
BS1	7/1/2015	9/30/2015	Invoiced	90.00
BS2	10/1/2015	12/31/2015	Invoiced	90.00
BS3	1/1/2016	3/31/2016	Pending Billing	90.00

After you extend the End Date of the subscription, the number of and the status of each Billing Schedule changes.

Schedule	Period Start	Period End	Status	Fee Amount	Superseded
BS1	7/1/2015	9/30/2015	Invoiced	90.00	Yes
BS4	8/1/2015	9/30/2015	Pending Billing	-60.00
BS5	8/1/2015	8/31/2015	Pending Billing	20.00
BS6	9/1/2015	9/30/2015	Pending Billing	20.00
BS2	10/1/2015	12/31/2015	Invoiced	90.00	Yes
BS7	10/1/2015	12/31/2015	Pending Billing	-90.00
BS8	10/1/2015	10/31/2015	Pending Billing	20.00
BS9	11/1/2015	11/30/2015	Pending Billing	20.00
BS10	12/1/2015	12/31/2015	Pending Billing	20.00
BS3	1/1/2016	3/30/2016	Superseded	90.00	Yes
BS11	1/1/2016	1/31/2016	Pending Billing	20.00
BS12	2/1/2016	2/29/2016	Pending Billing	20.00
BS13	3/1/2016	3/31/2016	Pending Billing	20.00
BS14	4/1/2016	4/30/2016	Pending Billing	20.00

Note

The new Term is now 8/1/2015 – 4/30/2016 (9 months) and the new Net Price is 180.00, the Fee amount is 20.00 per month. When you transition from a less frequent Billing Frequency (like quarterly) to more frequent Billing Frequency (like monthly), a credit Billing Schedule is created for each whole period Billing Schedule that is invoiced.

Because the billing frequency change is mid-cycle and the July-September Billing Schedule has been invoiced it will remain as invoiced and will be augmented with the following new Billing Schedules.

BS4 reflects the amount for the partial period that is being amended (at the original billing frequency and rate) and will appear as a credit when an Invoice is generated.
BS5 reflects the amount to charge for the first month within the amended partial period of the quarter.
BS6 reflects the amount to charge for the second month within the amended partial period of the quarter.

Also, the October-December Billing Schedule has been invoiced it will remain as invoiced and will be augmented with the following new Billing Schedules.

BS7 is a credit for the amount that was invoiced.
BS8 reflects the amount to charge for the first month within the 2nd quarter.
BS9 reflects the amount to charge for the second month within the 2nd quarter.
BS10 reflects the amount to charge for the third month within the 2nd quarter.

The January-March Billing Schedule is unbilled and is marked as Superseded and augmented with the following new Billing Schedules.

BS11 reflects the amount to charge for the first month within the 3rd quarter.
BS12 reflects the amount to charge for the second month within the 3rd quarter.
BS13 reflects the amount to charge for the third month within the 3rd quarter.

The End Date of the Asset Line Item is extended by 1 month to 4/30/2016 an additional Billing Schedule, BS14 is created to accommodate the extension.

Example 2

Consider another example where you must change the Billing frequency from Monthly to Quarterly, for a customer's software subscription plan, mid-cycle when the status of some Billing Schedules is Pending Billing and others is Invoiced.

Before you change the Billing frequency of the subscription from Monthly to Quarterly, you see the following Billing Schedules.

Schedule	Period Start	Period End	Status	Fee Amount
BS1	3/1/2015	3/31/2015	Invoiced	100.00
BS2	4/1/2015	4/30/2015	Invoiced	100.00
BS3	5/1/2015	5/31/2015	Invoiced	100.00
BS4	6/1/2015	6/30/2015	Invoiced	100.00
BS5	7/1/2015	7/31/2015	Invoiced	100.00
BS6	8/1/2015	8/31/2015	Pending Invoiced	100.00

After you extend the End Date of the subscription, the number of and the status of each Billing Schedule changes.

Schedule	Period Start	Period End	Status	Fee Amount	Superseded
BS1	3/1/2015	3/31/2015	Invoiced	100.00
BS2	4/1/2015	4/30/2015	Invoiced	100.00	Yes
BS7	4/16/2015	4/30/2015	Pending Billing	-50.00
BS8	4/16/2015	5/31/2015	Pending Billing	50.00
BS3	5/1/2015	5/31/2015	Invoiced	100.00	Yes
BS4	6/1/2015	6/30/2015	Invoiced	100.00	Yes
BS9	6/1/2015	8/31/2015	Pending Billing	100.00
BS5	7/1/2015	7/31/2015	Invoiced	100.00	Yes
BS6	8/1/2015	8/31/2015	Superseded	100.00	Yes

The new Term is now 4/16 – 8/31 (4 ½ months) and the new Net Price is 450.00, the Fee amount is 300.00 every quarter. The amendment was performed on 4/16 with the Billing Cycle Start defined as the Period Start Date and the Calendar Cycle Start is June, the 1st period is from 4/16 to 5/31. After this period the quarters is aligned with 6/1 so the next period is from 6/1 to 8/1.

Because the billing frequency change is mid-cycle and the April Billing Schedule has been invoiced it will remain as invoiced and will be augmented with one new Billing Schedule. The new Billing Schedule reflects the amount for the partial period that is being amended (at the original billing frequency and rate) and will appear as a credit when an Invoice is generated

Because the billing frequency change goes into effect 4/16 and the 16th does not align with the Start Period Date (3/1) a partial period will be created for the 1st new quarter. The Billing Schedule for May has already been invoiced, remains as invoiced, and is superseded by BS8. BS9 is created with a quarterly billing frequency that is from 6/1/2015 - 8/31/2015. It supersedes the 3 Billing Schedules for the months of June, July, and August. The Fee Amount is 300.00 but, because you Invoiced the schedules for June and July, the Fee amount is reduced to 100.00.