Renewing Legacy Assets

The action of extending the period of validity of a subscription or contract is known as a renewal. Legacy assets can be renewed on the same lines as regular assets. The "Renew" button on the ABO cart or the renewal automation framework should be used to renew legacy assets.

An amendment operation to extend the dates is not considered a renewal for this functionality.

Prerequisites

• The object and fields required to support legacy billing for asset line items are configured. For more information, see Understanding Billing Schedules and Billing System Properties.
• Make sure that the following minimum criteria are met: 
  • The Is Legacy for Billing? checkbox is set to True.
  • The Billing Frequency is not One Time (one-time products usually are not renewed).
• 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 asset may or may not have been billed in a recurring fashion in the legacy system. If the asset is not billed in a recurring way, then a catchup billing schedule is generated.
• After the renewal of the asset, the remaining billable amount reflects the renewal amount as a balance.

To renew a legacy asset

Follow the steps to renew a legacy asset.

1. Define an asset as 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 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. Invoice the billing schedules.
7. Perform renewal operations from the CPQ cart using the "Renew" button.

Use Case: To understand renewal with an example

Suppose you are a billing administrator of a company selling computer hardware 'Installation Device MF9’ with a TCV of $1800 for 12 months (billing term). You have already invoiced the customer for an amount of $900 over a billing period of 6 months and the Remaining Billable Amount is $900 to be billed over 6 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 11/20/0222. The legacy in Conga should have details as mentioned in the table.

Upon activating, Conga Billing creates 21 billing schedules, BS-001 for the already billed amount in the legacy system with Type as "Informational" and assigns the status as "Invoiced", BS-002 onwards are normal billing schedules with Type as Contracted and status as "Pending Billing" for 6 months.

Invoice the billing schedules and then perform renewal operations from the CPQ cart. Select the Asset and in the cart set the Adjustment Amount>> Base Price Override = 200. Click Reprice and then FInalize the cart. The renewal of the asset extends by 12 months.

The remaining billable amount gets updated to $2400.00 which is equal to the renewal amount.