Use Case: Terminating an Asset with Ramp Lines

This use case describes how CPQ calculates the end date of an asset with ramps when you terminate the asset prematurely. For example, you sold a product with three ramps for three years. When you terminate the asset before the end date of the first ramp, CPQ sets the start date as the end date for the rest of future ramp lines and refunds full amount.

The Same Day Cancellation is supported to work with Billing Preference as well as Calendar type of selling term calculation methods. For more information, see Use Case: Same Day Cancellation.

New Sale

You do a new sale of a product with three ramps:

Asset Termination

The following are different use cases of terminating assets with ramp lines.

The Same Day Cancellation is set to False in these use cases. For more information on enabling this setting, see Billing System Properties.

Use Case 1

You terminate the asset with Terminate Date as 11/30/2020 (before the end date of the first ramp).

On the second and third ramp lines, the start will be equal to the end date and the full amount will be refunded.

Use Case 2

You terminate the asset with Terminate Date as 11/30/2021 (before the end date of the second ramp).

On the third ramp, the start will be equal to the end date and the full amount will be refunded.

Use Case 3

You terminate the asset with Terminate Date as 11/30/2022 (before the end date of the third ramp).

If Same Day Cancellation is set to True, the refund will be for 1 month and 1 day. For more information on how Same Day Cancellation works, see Use Case: Same Day Cancellation.