Recurring Product - Multi-year Subscription With One-time Billing and Without Proration - Contract Term, TCV (Sales), or Both are Changed
The subscription is amended to push the contract's start and end dates out by one month. The amendment adds one month to the contract's end but doesn't truncate one month from the beginning of the contract. As a result, the contract term, TCV (Sales), or both are changed after the amendment. The billing periods after the amendment do not align with the existing periods, disrupting the billing schedule records (BSRs).
For example, a recurring, multi-year subscription with a one-time billing frequency is sold for three years with a TCV (Sales) of USD 288,000.00. The contract start date is 01-July-2024 and the end date is 30-June-2027. The setting, Proration allowed in One Time Billing is set to False.
The subscription is amended to push the start and end dates by one month. Due to existing CPQ behavior, the start date remains 01-July-2024 (instead of 01-August-2024 ), however, the contract's end date is extended to 01-July-2027, resulting in a change in the contrac's term. Although TCV (Sales) has increased from USD 288,000.00 to USD 296,000.00, it remains unchanged because the net unit price for the period remains unaltered. The date range is changed so that the new periods do not overlap with the existing ones. This disrupts the existing BSRs and new BSRs are created for the amended period. It is illustrated in the following diagram:
The subscription details after amendment are summarized in the following table:
|
Selling Term |
TCV (Sales) |
Net Unit Price |
Start Date |
End Date |
Effective Start Date |
Price Type |
Billing Frequency |
|---|---|---|---|---|---|---|---|
|
3.08333333 |
USD 296,000.00 |
USD 96,000.00 |
01-July-2024 |
31-July-2027 |
Null |
Recurring |
One-time |
Here, the billing application receives the payload for the amendment from an order or asset line item generated in Conga CPQ. When the application processes this line item per the request, it uses the value in the Effective Start Date field on the order line item (OLI) as the start date (null here) indicating no change in the start date. As a result, the billing header fields are updated as follows:
|
BH ID |
Current OLI |
Parent OLI |
ALI |
Billing Start Date |
Billing End Date |
TCV (Sales) |
Billable Amount for Current OLI |
Total Invoiced Amount |
Pending Invoice Amount |
Status |
|---|---|---|---|---|---|---|---|---|---|---|
|
BH-1 |
OLI-12 |
OLI-1 |
ALI-1 |
01-July-2024 |
31-July-2027 |
USD 296,000.00 |
USD 8,000.00 |
USD 0.00 |
USD 296,000.00 |
Active |
The BSRs are generated differently, based on the setting Superseding the Schedules during Asset Management is set to Always Supersede or Minimize, as shown below:
When the setting "Superseding the Schedules during Asset Management" is set to Always Supersede.
The BSRs and BSDs are:
|
BSR ID |
BSD ID |
Record Type |
Category |
Period Start Date |
Period End Date |
Actual Fee Amount |
Invoice Status |
Remarks |
|---|---|---|---|---|---|---|---|---|
|
BSR-1 |
BSD-1 |
Regular |
Fee |
01-July-2024 |
30-June-2027 |
USD 288,000.00 |
Superseded |
BSR-1 is not valid, so it is superseded. |
|
BSR-2 |
BSD-2 |
Regular |
Fee |
01-July-2024 |
31-July-2027 |
USD 296,000.00 |
Pending Billing |
Additional BSR, BSR-2 is created for a newer period because of the change operation. |
When the setting "Superseding the Schedules during Asset Management" is set to Minimize.
The BSRs are:
|
BSR ID |
Record Type |
Category |
Period Start Date |
Period End Date |
Actual Fee Amount |
Invoice Status |
Remarks |
|---|---|---|---|---|---|---|---|
|
BSR-1 |
Regular |
Fee |
01-July-2024 |
30-June-2027 |
USD 0.00 |
Superseded |
BSR-1 is not valid, so it is superseded. The fee is USD 0.00, the sum of BSD-1 and its counter-BSD, BSD-1a. |
|
BSR-2 |
Regular |
Fee |
01-July-2024 |
31-July-2027 |
USD 296,000.00 |
Pending Billing |
Additional BSR, BSR-2 is created for a newer period because of the change operation. |
The BSDs are:
|
BSD ID |
BSR ID |
Record Type |
Category |
Period Start Date |
Period End Date |
Actual Fee Amount |
Derived Invoice Status |
Remarks |
|---|---|---|---|---|---|---|---|---|
|
BSD-1 |
BSR-1 |
Regular |
Fee |
01-July-2024 |
30-June-2027 |
USD 288,000.00 |
Superseded |
BSD-1 is not valid, hence superseded. |
|
BSD-1.a |
Regular |
Fee |
01-July-2024 |
30-June-2027 |
(USD 288,000.00) |
Superseded |
Counter-BSD for the canceled BSD-1, BSD-1.a can be used to offset the revenue forecast from the previous BSD-1. | |
|
BSD-2 |
BSR-2 |
Regular |
Fee |
01-July-2024 |
31-July-2027 |
USD 296,000.00 |
Pending |
Additional BSD, BSD-2 is created for a newer period because of the change operation. |
