Full Term Cancellation

Full-term cancellation of legacy assets is a scenario where you cancel the asset on the Original Start Date. Billing uses the AND logical operator to validate two scenarios “if it is a cancellation & if the end date is equal to the original start date”. It proceeds with cancellation only if the validation is true, else Billing displays an error message on the asset line record page. 

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 Is Legacy for Billing checkbox is set to True.
• For the Cancellation, either the “Terminate” button or its API is used.

• The Same Day Cancellation custom setting is set to True and the End Date is equal to the Original Start Date.

• Alternatively, if the Same Day Cancellation custom setting is not True then the End Date must be equal to “Original Start Date − 1”.
• 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.

• The scenario is a full cancellation only if:

  • When either End Date equal to “Original Start Date” or End Date equal to “Original Start Date-1” is populated, it’s understood as a Full Cancellation.

  • When none of the above dates is populated, it’s understood as a Partial Cancellation.
  • Once validated, the billing metrics API returns the refund amount on the CPQ cart.
  • The cancellation Date is not a concern for Conga Billing for this functionality.
• Asset line record is marked as cancelled at the end of CPQ operation.

Cancelling the Legacy Assets

For full-term cancellation of legacy assets do the following steps:

1. Define an asset per the guidelines given for recurring products by CPQ. For more information, see  Recommendations to Import Legacy Products into Conga CPQ.

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".

6. Perform the invoice run to invoice a few billing schedules having the status as pending billing.
7. Navigate to the Cart and perform the full-term cancellation by using the Terminate button. Populate the End Date equal to the Original Start date and finalize the cart.
   Conga Billing supersedes all the invoiced billing schedules and produces redundant billing schedules with negative equivalent amounts. All other billing schedules with the status Pending Billing are cancelled.

Hence, once initiated for the full-term cancellation of the legacy assets, Conga Billing:

• Validates the full cancellation scenario and proceed with cancellation if the validation is passed, else throws an error on the asset line record page.
• Marks all the Pending billing schedules as Cancelled.
• Updates the Remaining Billable Amount to $0.00 on the asset line item since there is nothing to be billed in future.
• Adds the amount of all the Invoiced billing schedules and creates billing schedules with a negative amount to refund it to the customer.

Example 1: Cancelling Recurring asset

Suppose you are a billing administrator of a company selling computer hardware with a TCV of $5400 for 36 billing terms. You have already invoiced the customer for $2400 over a billing period of 16 months and the remaining billable amount is $3000 to be billed over a 20-month duration. The legacy contract was started in 2018 but the last known major price or config happened on 7/20/21. The asset's start date is 7/20/21. The first Billing Date is 11/20/2022.

Conga Billing produces the billing schedules as mentioned:

You have performed an invoice run to invoice one of the future billing schedules, BS-002 in this example.

You have cancelled the entire deal (full cancellation) by using the Terminate button on the CPQ cart. The system generates the billing schedules as shown in the table. The invoiced billing schedules are superseded.

The entire deal is cancelled and Conga Billing updates the remaining billable amount to $0.00 since there is nothing to be billed in future for this asset. A refund of $2550 is credited to the customer.

Example 2: Cancelling One-time asset

Considering the data from the previous example, let us cancel a one-time legacy asset. 

Scenario 1: Asset already billed in the legacy system

Since the asset is already billed in the legacy system, Conga Billing creates one billing schedule with the Type as Informational and assigns the Status as Invoiced:

After cancellation, the status of the Billing Schedule will be as follows depending on the same-day cancellation criteria being enabled.

The invoiced amount is refunded to the customer.

Scenario 2: Asset not billed in the legacy system

Since the asset is not billed in the legacy system, Conga Billing creates one billing schedule with the Type as Contracted and assigns the Status as Pending Billing:

After cancellation, the status of the billing schedule will be as follows:

Since the asset is not billed yet, hence no refund is given and the pending billing schedule is marked as cancelled.

Example 3: Cancelling Usage asset

Suppose you are a billing administrator of a company selling computer hardware 'Internet Plans’ and you have already invoiced the customer. The details are summarized in the following table:

You processed the Usage Input for a date say 11/20/2022, 11/21/2022, and 11/25/2022 which is in the range for period start date 11/20/2022 and period end date 12/19/2022, for a fee amount of $400, Billing will update the respective billing schedule accordingly, here it is BS-002. You have invoiced BS-002.

After cancellation on the same day, the status of the billing schedule will be as follows:

A refund is given to the customer.