If an OLI has a set of fields populated with the following values:

• PriceType is Recurring
• AutoRenewal Type setup is Evergreen
• AutoRenewalTerm is either a user-entered value or a derived term but can not be null.

When billing is initiated by calling the Initiate Billing API, the Price Type field on the billing header (BH) for this product is updated to Evergreen. The billing header of an evergreen product is activated like normal products and it fetches the details like start date, end date, quantity, current unbilled amount, net unit price, etc. from the OLI.

Based on the pricing source chosen in the Billing Settings, the pricing information is fetched from the Order Line Item (OLI) or Asset Line Item (ALI). When the pricing source is set to OLI, Billing fetches all the information, including the pricing information from the OLI. If the pricing source is set to ALI, Billing fetches the pricing information from the ALI. For more details on pricing sources, see Managing Pricing Source.

Suppose the order line item for a standalone product has the following details:

When Billing is initiated, the resulting Billing Header will contain the Price Type as Evergreen instead of Recurring. The billing header shows:

As the BSRs are marked as Invoiced (using the API or using the other out-of-the-box methods), additional BSRs are auto-created based on the value of the setting Evergreen Billing Schedule Records Creation Option defined in Billing Settings. This setting cannot be kept null simultaneously at the Billing Settings and Billing Preference levels. The following table captures the business purpose of each setting value.

From the above example, when billing is initiated, two BSRs are generated in pending billing status. (BSD is not shown here to keep the example simple. It is assumed that the BSD is approved and the fee amount is rolled up to the BSR.)

You called the Update Invoice API to change the status of BSR-1. The status of BSR-1 is changed to "Invoiced".

The setting is set to Ahead of Time: To generate renewed BSRs ahead of time, at the Billing Settings or Billing Preference level, set the setting Evergreen Billing Schedule Records Creation Option to "Ahead of Time".

When the Evergreen Billing API is invoked, one more BSR is created. This happens because the setting value is Ahead of Time, so the API creates additional BSR(s) as soon as the existing BSR(s) are marked as Invoiced. The creation of the number of additional BSRs is determined based on the value in the Auto Renewal Term field when compared with the number of existing BSRs that are in Pending status.

In this example, the Auto-Renewal Term is 02 (refer to the order line item details table) whereas the number of Pending BSRs dropped to 01 so the engine creates the additional BSR so that the count of the Pending BSRs matches with 02 (i.e., Auto-Renewal Term).

The date and amount fields on the BH are updated as:

The setting is set to Only When Needed: To create BSRs when you need them, at the Billing Settings or Billing Preference level, set the setting Evergreen Billing Schedule Records Creation Option to "Only When Needed".

When the Evergreen Billing API is invoked, it creates BSRs according to the Auto-Renewal Term populated on the OLI.

Considering the above example, say you have invoiced both the BSRs and then invoked the Evergreen API, it creates two more BSRs. This happens because the setting value is Only When Needed, so the API creates additional BSR(s) only when all the existing BSR(s) are marked as Invoiced. The creation of the number of additional BSRs is determined based on the field Auto Renewal Term.

In this example, the Auto-Renewal Term is 02 (refer to the Billing Header) so the engine creates two more BSRs when the evergreen API is invoked after all the BSRs are invoiced.

After the new BSRs are created, the TCV (Sales) field on the BH is updated to reflect the fee amount along with the TCV (Sales) from previous sales.

The Total Contract Value (TCV) (Sales) field on the Billing Header (BH) stores the contract value of an asset from the new sale. For evergreen Order Line Items (OLI), this field is dynamic and keeps updating as new BSRs are added as part of the renewal process. The number of new BSRs created depends on the value populated in the Renewal Term field. The BSRs contain the fee amount rolled up from the respective BSDs. Therefore, the TCV (Sales) is updated to reflect the total amount from the new sale plus the sum of the amounts of the newly created BSRs.

Consider the following example:

An Evergreen service is billed for USD 1,200.00 every quarter. The TCV (Sales) field on the BH has a value of USD 1,200.00. Billing is initiated, and four BSRs (BSR-1, BSR-2, BSR-3, and BSR-4) are created with a fee amount of USD 300.00 and invoiced.

The auto-renewal term is set to 2, hence two new BSRs are created because of auto-renewal functionality.

Now the value in the TCV (Sales) field is revised to reflect the fee amount of the newly created BSRs (updated in the Billable Amount For The Current Order Line field on the BH) along with the previous sale TCV (Sales).

Hence the new TCV (Sales) = USD 1,800.00 (USD 1,200.00 + USD 600.00).

Evergreen subscription has an auto-renewal functionality that decides the creation of renewal schedule records as per the billing frequency. When a Calendar Cycle Start is defined in the billing preference and the renewal is initiated, the billing period of the schedule records is altered. This section focuses on schedule record creation when the Billing Day of Month is set to End of the Month and Billing Cycle Start has some value at the Billing Preference.