Changing Billing Schedules When You Increase the Net Price of Assets
Example 1
You are a customer service representative for a software company and you increase the Net Price of the customer's software subscription plan mid-cycle when the status of each Billing Schedule is Pending Billing.
Before you increase the Net Price of the subscription, you see the following Billing Schedules.
Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
---|---|---|---|---|---|
BS1 | 3/1/2015 | 3/31/2015 | Pending Invoiced | 100.00 | |
BS2 | 4/1/2015 | 4/30/2015 | Pending Invoiced | 100.00 | |
BS3 | 5/1/2015 | 5/31/2015 | Pending Billing | 100.00 | |
BS4 | 6/1/2015 | 6/30/2015 | Pending Billing | 100.00 |
After you increase the Net Price of the subscription, the number of and the status of each Billing Schedule changes.
Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
---|---|---|---|---|---|
BS1 | 3/1/2015 | 3/31/2015 | Pending Invoiced | 100.00 | |
BS2 | 4/1/2015 | 4/30/2015 | Superseded | 100.00 | Yes |
BS5 | 4/1/2015 | 4/15/2015 | Pending Billing | 50.00 | |
BS6 | 4/16/2015 | 4/30/2015 | Pending Billing | 100.00 | |
BS3 | 5/1/2015 | 5/31/2015 | Superseded | 100.00 | Yes |
BS7 | 5/1/2015 | 5/31/2015 | Pending Billing | 200.00 | |
BS4 | 6/1/2015 | 6/30/2015 | Superseded | 100.00 | Yes |
BS8 | 6/1/2015 | 6/30/2015 | Pending Billing | 200.00 |
Because the amendment is mid-cycle and the April Billing Schedule is unbilled it will be superseded and augmented with the following new Billing Schedules.
- BS1 reflects the amount (at the old rate) to charge for the partial period before the amendment date.
- BS2 reflects the increased amount for the partial period that was amended.
Also, the Billing Schedules for May and June are unbilled and are superseded and replaced by Billing Schedules that reflect the increased amount.
Example 2
Consider another example where for a software company and you increase the Net Price of the customer's software subscription plan mid-cycle when the status of some Billing Schedules is Pending Billing and others is Invoiced.
Before you increase the Net Price of the subscription, you see the following Billing Schedules.
Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
---|---|---|---|---|---|
BS1 | 4/1/2015 | 4/30/2015 | Invoiced | 100.00 | |
BS2 | 5/1/2015 | 5/31/2015 | Invoiced | 100.00 | |
BS3 | 6/1/2015 | 6/30/2015 | Pending Invoiced | 100.00 |
After you increase the Net Price of the subscription, the number of and the status of each Billing Schedule changes.
Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
---|---|---|---|---|---|
BS1 | 4/1/2015 | 4/30/2015 | Invoiced | 100.00 | Yes |
BS4 | 4/16/2015 | 4/30/2015 | Pending Billing | -50.00 | |
BS5 | 4/16/2015 | 4/30/2015 | Pending Billing | 100.00 | |
BS2 | 5/1/2015 | 5/31/2015 | Invoiced | 100.00 | Yes |
BS6 | 5/1/2015 | 5/31/2015 | Pending Billing | 100.00 | |
BS3 | 6/1/2015 | 6/30/2015 | Superseded | 100.00 | Yes |
BS7 | 6/1/2015 | 6/30/2015 | Pending Billing | 200.00 |
Because the amendment is mid-cycle and the April Billing Schedule is already invoiced it remains as invoiced and is augmented with the following new Billing Schedules.
- BS1 reflects the amount (at the old rate) that was invoiced for the partial period at/after the amendment date and will appear as a credit when an Invoice is generated.
- BS2 reflects the increased amount for the partial period that was amended and will appear as a charge when an Invoice is generated.
Also, the Billing Schedule for May has been invoiced it will remain as invoiced and will be augmented with one new Billing Schedule. This new Billing Schedule contains the new amount to charge for and appears on the next Invoice generated for that Asset. The Billing Schedule for June is then unbilled (in draft state) it is superseded and replaced by a Billing Schedule that reflects the increased amount.