Partial Cancellation

In partial cancellation, the cancellation date is any date between the asset start date and the asset end date. Based on the end date populated, the Billing decides the type of cancellation. If you want to cancel the asset during the legacy period (cancellation date same as the asset start date or the first billing date), partial cancellation is not allowed, and Billing displays an error message. If you want to cancel the asset after the migration date into Conga Billing, partial cancellation is allowed.

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

• If the populated End Date does not provide sufficient information for "Full Cancellation", Conga Billing validates the following points before proceeding further:

  • When the End Date is equal to the “Start Date” or “First Billing Date”, partial cancellation is not allowed in Conga Billing for this date.

  • When the End Date is greater than the Start Date, partial cancellation is allowed and Conga Billing computes and produces billing schedules, when initiated.
• Asset line record is marked as cancelled at the end of CPQ operation.

Partially Cancelling the Legacy Assets

For partial 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 partial cancellation by using the Terminate button. Populate the End Date greater than the First Billing Date.
   Conga Billing supersedes the invoiced billing schedules after the populated end date and produces redundant billing schedules with negative equivalent amounts. All other billing schedules with the status Pending Billing are cancelled.

After the partial cancellation of the legacy assets, Conga billing:

• Validates the populated "End Date" and proceed with cancellation if the validation is passed, else throws an error “Assets End Date cannot be earlier than the first billing date in conga” on the Order Edit 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 the negative amount to refund it to the customer. 

If there is any pending billing schedule with the date prior to the cancellation date, then the amount in that billing schedule gets added to the remaining billable amount.

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 an amount of $2400 over a billing period of 16 months billing term in the legacy system 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. Let's consider the first Billing Date as 11/20/2022.

Scenario 1: Performing partial cancellation at the end of the ongoing billing Period

Suppose you have invoiced a few of the future billing schedules. You want to initiate a partial cancellation of the deal at the end of a billing period say 3/20/2023. The system generates the billing schedules as shown in the table below and updates the remaining billable amount to $0.00. A refund of $600 will be credited to the customer.

For the invoiced period a refund is initiated and for the un-invoiced period, the status is updated to "Cancelled".

Scenario 2: Performing partial cancellation in mid of the ongoing billing period

Suppose you have invoiced a few of the future billing schedules. You want a partial cancellation of the deal in the middle of a billing period say 5/31/2023. The system generates the billing schedules as shown in the table below and updates the remaining billable amount to $0.00. A refund of $241.94 will be credited to the customer.

The deal is partially cancelled and the remaining billable amount is updated to $0.00 since there is nothing to be billed in future.

Example 2: Cancelling One-time asset

Partial cancellation is not supported for One-Time products and there won't be any refund given after you cancel One-Time products.

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 $300, Billing will update the respective billing schedule accordingly, here it is BS-002. You have invoiced BS-002.

If you cancel the deal in the say on 11/30/2022, the status of the billing schedule will be as follows: