When you cancel an asset, the cancellation is effective only a day's time.
Example 1
You are a customer service representative for a telecommunications company and you cancel a customer's data subscription plan mid-cycle when the status of each Billing Schedule is Pending Billing.
Before you cancel the subscription, you see the following Billing Schedules.
Billing Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
|---|
BS1 | 1/1/2015 | 1/31/2015 | Pending Billing | 100.00 |
|
BS2 | 2/1/2015 | 2/28/2015 | Pending Billing | 100.00 |
|
BS3 | 3/1/2015 | 3/31/2015 | Pending Billing | 100.00 |
|
BS4 | 4/1/2015 | 4/30/2015 | Pending Billing | 100.00 |
|
After you cancel the subscription, you see that status of schedules changes.
Billing Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
|---|
BS1 | 1/1/2015 | 1/31/2015 | Pending Billing | 100.00 |
|
BS2 | 2/1/2015 | 2/28/2015 | Superseded | 100.00 | Yes |
BS5 | 2/1/2015 | 2/14/2015 | Pending Billing | 50.00 |
|
BS6 | 2/15/2015 | 2/28/2015 | Cancelled | 50.00 |
|
BS3 | 3/1/2015 | 3/31/2015 | Cancelled | 100.00 |
|
BS4 | 4/1/2015 | 4/30/2015 | Cancelled | 100.00 |
|
In the above example, because the you cancelled the subscription mid-cycle, the original Billing Schedule is superseded and replaced by the following new Billing Schedules.
- BS1 is for the partial period that is still active and has not been billed.
- BS2 is for the partial period that has been cancelled.
Also, because the Billing Schedules for March and April are unbilled their status is set to Cancelled.
Example 2
Consider another example where you want to cancel a customer's data subscription plan mid-cycle when the status of some Billing Schedules is Pending Billing and others is Invoiced.
Before you cancel the subscription, you see the following Billing Schedules.
Billing Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
|---|
BS1 | 1/1/2015 | 1/31/2015 | Invoiced | 100.00 |
|
BS2 | 2/1/2015 | 2/28/2015 | Invoiced | 100.00 |
|
BS3 | 3/1/2015 | 3/31/2015 | Invoiced | 100.00 |
|
BS4 | 4/1/2015 | 4/30/2015 | Pending Invoiced | 100.00 |
|
BS5 | 5/1/2015 | 5/31/2015 | Pending Billing | 100.00 |
|
After you cancel the subscription, you see that status of schedules changes.
Billing Schedule | Period Start | Period End | Status | Fee Amount | Superseded |
|---|
BS1 | 1/1/2015 | 1/31/2015 | Invoiced | 100.00 |
|
BS2 | 2/1/2015 | 2/28/2015 | Invoiced | 100.00 | Yes |
BS6 | 2/15/2015 | 2/28/2015 | Cancelled | 50.00 |
|
BS7 | 2/15/2015 | 2/28/2015 | Pending Billing | -50.00 |
|
BS3 | 3/1/2015 | 3/31/2015 | Invoiced | 100.00 | Yes |
BS8 | 3/1/2015 | 3/31/2015 | Pending Billing | -100.00 |
|
BS4 | 4/1/2015 | 4/30/2015 | Cancelled | 100.00 |
|
BS5 | 5/1/2015 | 5/31/2015 | Cancelled | 100.00 |
|
In the second example, because you cancelled the subscription mid-cycle, the Billing Schedule for February is invoiced and is augmented with two new Billing Schedules.
- BS1 is for the partial period that was cancelled and is used to record that portion of the invoiced amount that was cancelled.
- BS2 is also for the partial period that was cancelled and it is used to generate an Invoice Line Item in order to reflect the credit for the portion of the invoiced amount that was cancelled.
Because the entire period for March is already invoiced it augments a single Billing Schedule that is used to generate an Invoice Line Item that then reflects the credit for the invoiced amount was cancelled. The Billing Schedules for April and March are unbilled their status is changed to Cancelled.