Example 1

You are a customer service representative for a software company and you extend the End Date of a customer's software subscription plan mid-cycle when the status of each Billing Schedule is Pending Billing.

Before you extend the End Date 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Superseded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

200.00


BS2

5/1/2015

5/31/2015

Invoiced

200.00


BS3

6/1/2015

6/30/2015

Pending Invoiced

200.00



After you extend the End Date 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Superseded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

200.00

Yes

BS4

4/16/2015

4/30/2015

Pending Billing

-100.00


BS5

4/16/2015

4/30/2015

Pending Billing

50.00


BS2

5/1/2015

5/31/2015

Invoiced

200.00

Yes

BS6

5/1/2015

5/31/2015

Pending Billing

-100.00


BS3

6/1/2015

6/30/2015

Superseded

200.00

Yes

BS7

6/1/2015

6/30/2015

Pending Billing

100.00


BS8

7/1/2015

7/31/2015

Pending Billing

100.00

 

BS9

8/1/2015

8/31/2015

Pending Billing

100.00

 

BS10

9/1/2015

9/15/2015

Pending Billing

50.00

 


Because the amendment is mid-cycle and the April Billing Schedule has been invoiced it will remain as invoiced and augmented with two new Billing Schedules.

  • BS1 reflects the overpaid amount for the partial period that was amended and will appear as a credit when an Invoice is generated.
  • BS2 reflects the new amount for the partial period that was amended and will appear as a debit when an Invoice is generated.

Also, the Billing Schedule for May has been invoiced it will be augmented with one new Billing Schedule. This new Billing Schedule contains a credit for the overpaid amount that was invoiced and will appear on the next Invoice generated for the corresponding Asset.  The Billing Schedule for June is unbilled it will be superseded and replaced by a Billing Schedule that reflects the new amount. The End Date was extended by 2.5 months and 3 new Billing Schedules are created with the appropriate fee amount.  The last Schedule created is only for half a month.

Example 2

Consider another example where you extend the End Date 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 extend the End Date 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 Billing

100.00

 


After you extend the End Date 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

200.00

 

BS2

5/1/2015

5/31/2015

Invoiced

200.00

Yes 

BS4

5/1/2015

5/31/2015

Pending Billing

-100.00

 

BS3

6/1/2015

6/15/2015

Superseded

100.00

Yes 

BS5

6/1/2015

6/30/2015

Pending Invoiced

100.00

 

BS6

7/1/2015

7/31/2015

Pending Invoiced

100.00

 



Note

The End Date of the Asset Line Item was extended by 1.5 months and Net Price was set to 300.00 for the new Term (5/1/2015 – 7/31/2015).  This reduces the Fee from $200 per month to $100.00 per month.


Because the amendment is at the period start and the May Billing Schedule has been invoiced it will remain as invoiced and will be augmented with one new Billing Schedule. The new Billing Schedule reflects the overpaid amount for the whole period that was amended and will appear as a credit when an Invoice is generated. The Billing Schedule for June is unbilled it will be superseded and replaced by a Billing Schedule that reflects the new amount.


Because the original Schedule for June was for a partial period and the End Date of the Asset Line Item is extended by 1.5 months, the replacement Billing Schedule period is extended to a full period. Extending the End date by a period of 1.5 months results in the following changes.
The partial period for June is extended to a full period and the fee amount is updated accordingly. A new Billing Schedule is created for July with the appropriate fee amount.