Performing "Credit & Rebill" on the Invoices of Legacy Assets

The credit and rebill functionality enables you to credit some or all of the amount to the customer as contained in the billing schedules and to bill them again for the same amount. This functionality may be required when there are changes to the contract.

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.
• 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.

• Credit and Rebill functionality is only applicable for:
  • Approved invoices
  • The approved invoice that is not yet paid or partially paid
  • Invoices with no associated credit memos
• The criteria to perform credit and rebill for legacy assets remains the same as normal assets.
• The existing Credit and Rebill functionality is used to credit and rebill legacy assets.

To credit and rebill a legacy asset

To credit and rebill a legacy asset, do the following steps:

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

2. Perform the CPQ flow to generate 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".

For more information on credit and rebill, see Credit and Rebill. 

Let us understand it with examples.

Step 1: Billing the legacy assets

Suppose you are a billing administrator of a company selling computer hardware with a TCV of $1000 for 10 billing terms. You have already invoiced the customer for $200 over a billing period of 2-months billing term and the remaining billable amount is $800, to be billed over 8 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 nine billing schedules, BS-001 for the already billed amount in the legacy system with the Type field set to Informational and subsequent normal billing schedules for 8 months.

Step 2:  Invoice the first 3 billing schedules

The remaining billable amount is updated to $500 after invoicing.

Step 3:  Credit and Rebill for the last invoiced month on 1/20/2023 or BS-004

Click Credit and Rebill. The remaining billable amount gets revised to $600 and the status of BS-004 reverts to Pending Billing.