Using the Terminate feature, you can cancel a standalone, fixed bundle, or a configurable bundle asset. You can terminate an asset midway through the selling term. When an asset is canceled, the system captures the Cancellation or Termination Date of an asset on the Line Item object in the Contract Number field. The Contract Number field captures the information in CCYY-MM-DD format which is used by the order and asset to store the Cancellation Date. The appropriate order line items are created and assets are also updated immediately. During billing, the system determines the refund value from the Cancellation Date captured in the asset and refunds accordingly to the customer.
From the example discussed earlier, your subscriber wants to cancel the subscription for the Programming with Python course.
To terminate an asset
The fields displayed during termination depend on how your administrator has configured the Asset Termination Fields setting. For more information, see "Configuring Installed Product Settings" in CPQ on Salesforce Spring 2020 Administrator Guide.
- Click Installed Products.
Select the products that you want to cancel and click Terminate. The Confirm Termination pop-up is displayed.
Enter the Termination Date and click Confirm.
The termination date can be in the past, the current date, or any date in the future. You can use custom logic to validate the date entered for the cancellation. If the validation fails, an error message is displayed. After you terminate an Asset Line Item (ALI), the status changes to Pending Cancellation immediately. Only after you activate the order containing this ALI, the status of the cancelled ALI changes to Cancelled.
CPQ enables you to edit selected fields on a cancelled line, based on what the administrator has configured in Editable Fields For Cancelled Lines in Installed Product settings. You can edit the end date on the cancelled line and reprice the cart to calculate the net price. The values you edit at the bundle level cascade to the associated option lines. The end date of a cancelled bundled header line overrides any change to the end date at the option level.
You can also edit a custom currency field to pass credit amounts to downstream applications through the proposal or order. Apart from the fields you selected, the remaining fields are ready-only fields. For more information, see "Configuring Installed Product Settings" in CPQ on Salesforce Spring 2020 Administrator Guide.
Click Calculate to calculate the difference in billing amount.
The system shows values for different fields, such as the Pending Billing (Original = the amount you had paid, Projected = the amount to be credited/debited depending on the termination date, and Difference = the difference between the former field values).
If your product has different Charge Types, the system displays the amount divided among the different Charge Types also. If your product is a Bundle and contains multiple Options, the system displays the amount divided among the Option products. Also, terminating a bundle cancels all the associated options configured inside that bundle.
The Projected and Different amount is calculated simultaneously when you click Calculate using the Billing Schedules and Billing APIs. This gives you a quick overview of the difference you have to pay to or receive from an organization.
For example, if your Asset, priced at USD 1200, contains the Start Date as 01/01/2016, End Date as 12/31/2016, and Termination Date as 07/31/2016, the amount populated in the different fields are:
Original = USD 1200
Projected = USD 300
Difference = USD -900
To receive the complete amount as a refund for the entire period of an asset, you must select Same Day Cancellation custom setting. The system charges you for the period between the Start and End Date of an asset. For example, if your Asset, priced at USD 1200, contains the Start Date as 01/01/2016, End Date as 12/31/2016, and Termination Date as 01/02/2016, you are charged for the amount calculated for 01/01/2016 and 01/02/2016.
The billing impact is shown only if you have Apttus Billing Management package installed in your org. Refer to Billing Management User Guide for details of each field. If Apttus Billing Management is not installed, the system calculates the different values based on the Calendar dates.
If you terminate an asset after renewing it, the billing amount is calculated for the renewal period (not from the inception of the asset). CPQ displays the net price of the current year asset (renewed asset) on the Termination window.
For example, you do a new sale of a product where:
- Start Date = 01/01/2019
- End Date = 12/31/2019
- Selling Term = 12
- Net Price = 1200
You renew the asset where:
- Start Date = 01/01/2020
- End Date = 10/31/2020
- Selling Term = 10
- Net Price = 1000
After order activation, the current net price of the asset is 1000 and the total net price of the asset is 2200. When you terminate the asset, CPQ displays the current net price of the asset as 1000 on the termination window.
- Click Confirm.
The status of the cancelled ALIs shows Pending Cancellation on the Installed Products page.
Go to the Cart and review the following fields and their values.
- Delta Price
- Delta Quantity
- Net Price
- Line Status
You can view the change in the Delta Quantity and Delta Price on the Cart only if you have Apttus Billing Management installed in your org. For the above example, Delta Price is shown as USD -900.
The fields that you can edit on the cart depend on how your administrator has configured. For more information, see "Configuring Installed Product Settings" in CPQ on Salesforce Winter 2019 Administrator Guide.
Delta Quantity and Delta Price is 0 for the following scenarios:
- Your Bundle or Standalone product has Charge Type = One Time.
- You do not have Apttus Billing Management installed in your org.
- Click Review & Finalize > Finalize.
Once you finalize the Cart and activate the Order for the terminated assets, you can view the impact on the following fields:
- For an Asset Line Item, Asset Status changes to Cancelled, Delta Price and Delta Quantity contain new values.
- For an Order Line Item, Line Status changes to Cancelled, Delta Price and Delta Quantity contain new values.
Once cancelled, the system selects the Inacitve flag for the ALIs with Cancelled status so that these ALIs do not show on the Cart for the successive ABO actions.
The status of the cancelled asset changes from Pending Cancellation to Cancelled. The Billing Schedules for a cancelled asset are cancelled on the same day of cancellation. This is achieved using a flag called, Same Day Cancellation, available at Setup > Develop > Custom Settings > Billing System Properties > System Properties. When checked, the Billing Schedules for a cancelled asset are marked with Cancelled status on the same day of cancellation. If not checked, the Billing Schedules for a cancelled asset are marked as Cancelled on the day after an asset was cancelled.
Apart from the Terminate action, following are the scenarios when the status of the ALI changes to Cancelled:
- While using Change action, if you deselect an Option product (inside a Bundle product) and finalize the Cart containing this Bundle Product. The status of the ALI for Bundle product will show as Amended and that for the Option product will show as Cancelled.
- While using Swap action, if you replace a product with another product, the status of the ALI for the former will show as Cancelled.
To check the status of your assets, the Approval Stage of the Quote/Proposal must be Accepted. To view the assets, select the account of the proposal and navigate to Asset Line Items (Sold To) related list.
A new entry is also made in the Asset Transaction History related list. Refer to Asset Transaction History for more details.