Usage Schedules for Cancelled Assets

Example 1

You are a customer service representative for a telecommunications company and you cancel a customer's usage based subscription plan mid-cycle when the status of each Usage Schedule is Pending Billing.

Before you cancel the subscription, the asset line item has the following Billing Schedules.

Billing Schedule	Period Start	Period End	Status	Usage Fee Amount
BS1	1/1/2015	1/31/2015	Invoiced	88.00
BS2	2/1/2015	2/28/2015	Pending Billing	72.00
BS3	3/1/2015	3/31/2015	Pending Billing	0.00
BS4	4/1/2015	4/30/2015	Pending Billing	0.00

Before you cancel the subscription, the asset line item has the following Usage Schedules.

Usage Schedule	Period Start	Period End	Status	Billing Schedule ID	Quantity
US1	1/1/2015	1/31/2015	Pending Billing	BS1	30
US2	2/1/2015	2/28/2015	Pending Billing	BS2	26
US3	3/1/2015	3/31/2015	Pending Billing	BS3	0
US4	4/1/2015	4/30/2015	Pending Billing	BS4	0

After you cancel the subscription, the status of Billing Schedules change.

Billing Schedule	Period Start	Period End	Status	Fee Amount	Superseded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BS2	2/1/2015	2/28/2015	Superseded	72.00	Yes
BS5	2/1/2015	2/21/2015	Pending Billing	52.50
BS6	2/22/2015	2/28/2015	Cancelled	19.50
BS3	3/1/2015	3/31/2015	Cancelled	0.00
BS4	4/1/2015	4/30/2015	Cancelled	0.00

After you cancel the subscription, the status of Usage Schedules change.

Usage Schedule	Period Start	Period End	Status	Billing Schedule ID	Quantity	Superseded
US1	1/1/2015	1/31/2015	Pending Billing	BS1	30
US2	2/1/2015	2/28/2015	Superseded	BS2	26	Yes
US5	2/1/2015	2/21/2015	Pending Billing	BS5	17
US6	2/22/2015	2/28/2015	Cancelled	BS6	9
US3	3/1/2015	3/31/2015	Cancelled	BS3	0
US4	4/1/2015	4/30/2015	Cancelled	BS4	0

In the above example, because you cancelled the subscription mid-cycle, and Usage Schedule for the February is unbilled, the status is marked as Superseded and augmented be with the following Usage Schedules.

BS1 is for the partial period that is still active and has not been billed. It reflects the aggregate amount of the rated Usage Inputs that have a date greater than or equal to 2/1 and less than or equal 2/21.
US1 is for the partial period that is still active and has not been billed. It reflects the aggregate quantity of the rated Usage Inputs that have a date greater than or equal to 2/1 and less than or equal 2/21.
BS2 is for the partial period that has been cancelled. It reflects the aggregate amount of the rated Usage Inputs that have a date greater than or equal to 2/22 and less than or equal 2/28.
US2 is for the partial period that you cancelled. It reflects the aggregate quantity of the rated Usage Inputs that have a date greater than or equal to 2/22 and less than or equal 2/28.

Note

Every usage based asset that you terminate or change, also has Billing Schedules associated with that asset. The Usage Schedules are updated in a manner similar to the Billing Schedules.

Example 2

Consider another example where you want to cancel a customer's subscription plan mid-cycle when the status of some Usage Schedules is Pending Billing and others is Invoiced.

Before you cancel the subscription, the asset line item has the following Billing Schedules.

Billing Schedule	Period Start	Period End	Status	Fee Amount
BS1	1/1/2015	1/31/2015	Invoiced	88.00
BS2	2/1/2015	2/28/2015	Invoiced	72.00
BS3	3/1/2015	3/31/2015	Invoiced	78.00
BS4	4/1/2015	4/30/2015	Pending Billing	66.00

Before you cancel the subscription, the asset line item has the following Usage Schedules.

Usage Schedule	Period Start	Period End	Status	Billing Schedule ID	Quantity
US1	1/1/2015	1/31/2015	Pending Billing	BS1	30
US2	2/1/2015	2/28/2015	Pending Billing	BS2	26
US3	3/1/2015	3/31/2015	Pending Billing	BS3	31
US4	4/1/2015	4/30/2015	Pending Billing	BS4	24

After you cancel the subscription, you see that status of Billing Schedules change.

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	72.00	Yes
BS5	2/1/2015	2/28/2015	Pending Billing	-72.00
BS6	2/1/2015	2/22/2015	Pending Billing	52.50
BS7	2/22/2015	2/28/2015	Cancelled	19.50
BS3	3/1/2015	3/31/2015	Invoiced	78.00	Yes
BS8	3/1/2015	3/31/2015	Pending Billing	-78.00
BS4	4/1/2015	4/30/2015	Cancelled	66.00

After you cancel the subscription, you see that status of Usage Schedules change.

Usage Schedule	Period Start	Period End	Status	Billing Schedule ID	Quantity	Superseded
US1	1/1/2015	1/31/2015	Pending Billing	BS1	30
US2	2/1/2015	2/28/2015	Invoiced	BS2	26	Yes
US5	2/1/2015	2/21/2015	Pending Billing	BS6	17
US6	2/22/2015	2/28/2015	Cancelled	BS7	9
US3	3/1/2015	3/31/2015	Invoiced	BS3	31	Yes
US4	4/1/2015	4/30/2015	Cancelled	BS4	24

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 a credit for the amount that was invoiced.
BS2 is for the partial period that was not cancelled and is used to charge for the portion of the invoiced amount was billed. It reflects the aggregate amount of the rated Usage Inputs that have a date greater than or equal to 2/1 and less than or equal 2/21.
US1 is for the partial period that was not cancelled and is used to record (audit) that portion of the quantity amount was billed. It reflects the aggregate quantity of the rated Usage Inputs that have a date greater than or equal to 2/1 and less than or equal 2/21.
BS3 is for the partial period that was cancelled and the amount the Account will not be charged for. It reflects the aggregate amount of the rated Usage Inputs that have a date greater than or equal to 2/22 and less than or equal 2/28.
US2 is also for the partial period that has been cancelled. It reflects the aggregate quantity of the rated Usage Inputs that have a date greater than or equal to 2/22 and less than or equal 2/28.

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.