Amendment in Price and Quantity
An asset may undergo multiple amendments during the contract period, including changes in price, term, or quantity.
For example, a subscription with a monthly billing frequency is sold for three years with a TCV (Sales) of USD 12,960.00. The contract start date is 01 October 2024, and the end date is 30 September 2027. The selling term is 36, the quantity is four, and the net unit price is USD 90.00.
When billing is initiated, a billing header and 36 billing schedule records (BSRs) with a fee of USD 360.00 are created.
New Sale
The Billing header for the new sale is as follows:
| BH ID | Current OLI | Parent OLI | Billing Frequency | Billing Start Date | Billing End Date | TCV (Sales) | Net Unit Price | Quantity | Selling Term | Billable Amount for Current OLI | Total Invoiced Amount | Pending Invoice Amount | Status |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BH-1 | OLI-1 | OLi-1 | Monthly | 01-October-2024 | 30-September-2027 | USD 12,960.00 | USD 90.00 | 4 | 36.0000000000 | USD 12,960.00 | USD 0.00 | USD 12,960.00 | Active |
The billing schedule records and billing schedule details for new sales are:
| BSR ID | BSD ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status |
|---|---|---|---|---|---|---|---|
| BSR-1 | BSD-1 | Regular | Fee | 01-October-2024 | 31-October-2024 | USD 360.00 | Pending Billing |
| BSR-2 | BSD-2 | Regular | Fee | 01-November-2024 | 30-November-2024 | USD 360.00 | Pending Billing |
| ... | ... | ..... | .... | .... | .... | .... | .... |
| BSR-35 | BSD-35 | Regular | Fee | 01-August-2027 | 31-August-2027 | USD 360.00 | Pending Billing |
| BSR-36 | BSD-36 | Regular | Fee | 01-September-2027 | 31-September-2027 | USD 360.00 | Pending Billing |
There are four amendments to the asset during the contract period:
- Amendment 1 - Price increases but quantity decreases after the amendment - Elaborated in Use Case 1
- Amendment 2 - Price decreases but quantity increases after the amendment. Its reverse of use case 1 and can be easily executed, so it is not elaborated here.
- Amendment 3 - Price and quantity are changed but the fee remains unchanged. It can be easily executed with minor changes to use case 1, so it is not elaborated here.
- Amendment 4 - Price, Quantity, and Term are changed from the start of the current contract date - Elaborated in Use Case 2.
Use Case 1: Increase in Price but Decrease in Quantity
The subscription is amended to increase the price and decrease the quantity after three months from the contract start date. The amendment start date is 01 January 2025 and the end date is 30 September 2027. The selling term is 33, the quantity is decreased to three, and the net unit price is increased to USD 150.00.
The Billing header after the amendment is as follows:
| BH ID | Current OLI | Parent OLI | Billing Frequency | Billing Start Date | Billing End Date | TCV (Sales) | Net Unit Price | Quantity | Selling Term | Billable Amount for Current OLI | Total Invoiced Amount | Pending Invoice Amount | Status |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BH-1 | OLI-2 | OLI-1 | Monthly | 01-January-2024 | 30-September-2027 | USD 15,930.00 | USD 150.00 | 3 | 33.0000000000 | USD 2,970.00 | USD 0.00 | USD 15,930.00 | Active |
Different number of billing schedule records and billing schedule details are generated after the amendment based on the following settings.
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-October-2024 | 31-October-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-2 | BSD-2 | Regular | Fee | 01-November-2024 | 30-November-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-3 | BSD-3 | Regular | Fee | 01- December-2024 | 31- December -2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-4 | BSD-4 | Regular | Fee | 01- January-2025 | 31-January-2025 | USD 360.00 | Superse ded | |
| ... | ... | ..... | .... | .... | .... | .... | .... | |
| BSR-36 | BSD-36 | Regular | Fee | 01-September-2027 | 30-September-2027 | USD 360.00 | Superse ded | |
| BSR-37 | BSD-37 | Regular | Fee | 01-January-2024 | 31-January-2025 | USD 450.00 | Pending Billing | Newly created because of the amendment. |
| ... | ... | ... | ... | ... | ... | ... | ... | ... |
| BSR-69 | BSD-69 | Regular | Fee | 01-September-2027 | 30-September-2027 | USD 450.00 | Pending Billing | Newly created because of the amendment. |
When the setting Superseding the Schedules during Asset Management is set to Minimize
The BSRs 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-October-2024 | 31-October-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-2 | BSD-2 | Regular | Fee | 01-November-2024 | 30-November-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-3 | BSD-3 | Regular | Fee | 01- December-2024 | 31- December -2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-4 | BSD-4 | Regular | Fee | 01- January-2025 | 31-January-2025 | USD 450.00 | Pending Billing | The fee amount is rolled up from the BSD-4 and Counter BSD-4.a. |
| ... | ... | ..... | .... | .... | .... | .... | .... | |
| BSR-36 | BSD-36 | Regular | Fee | 01-September-2027 | 30-September-2027 | USD 450.00 | Pending Billing | The fee amount is rolled up from the BSD-36 and Counter BSD-36.a. |
The BSDs are:
| BSD ID | BSR ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status | Remarks |
|---|---|---|---|---|---|---|---|---|
| BSD-1 | BSR-1 | Regular | Fee | 01-October-2024 | 31-October-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSD-2 | BSR-2 | Regular | Fee | 01-November-2024 | 30-November-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSD-3 | BSR-3 | Regular | Fee | 01- December-2024 | 31- December -2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSD-4 | BSR-4 | Regular | Fee | 01- January-2025 | 31-January-2025 | USD 360.00 | Pending Billing | The fee amount is rolled up from the BSD-4 and Counter BSD-4.a. |
| BSD-4.a | Regular | Fee | 01- January-2025 | 31-January-2025 | USD 90.00 | Pending | Counter BSD for BSD-4. BSD-4.a can be used to offset the revenue forecast from the previous BSD-4. | |
| ... | ... | ..... | .... | .... | .... | .... | .... | |
| BSD-36 | BSR-36 | Regular | Fee | 01-September-2027 | 30-September-2027 | USD 360.00 | Pending Billing | The fee amount is rolled up from the BSD-36 and Counter BSD-36.a. |
| BSD-36.a | Regular | Fee | 01-September-2027 | 30-September-2027 | USD 90.00 | Pending Billing | Counter BSD for BSD-36. BSD-36.a can be used to offset the revenue forecast from the previous BSD-36. |
Use Case 2: Price, Quantity, and Term are Changed from Start of the Current Contract Date
A further amendment is done to increase the quantity and decrease the price. The negotiation added an extra three months to the contract leading to an increase in the contract term. The start and end dates are 01 July 2025 and 31 December 2027. The selling term is 30, the quantity is increased to 10, and the net unit price is decreased to USD 45.00.
The Billing header after the amendment is as follows:
| BH ID | Current OLI | Parent OLI | Billing Frequency | Billing Start Date | Billing End Date | TCV (Sales) | Net Unit Price | Quantity | Selling Term | Billable Amount for Current OLI | Total Invoiced Amount | Pending Invoice Amount | Status |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BH-1 | OLI-4 | OLI-1 | Monthly | 01-July-2025 | 31-December-2027 | USD 16,980.00 | USD 45.00 | 10 | 30.0000000000 | USD 0.00 | USD 0.00 | USD 16,980.00 | Active |
When the setting Superseding the Schedules during Asset Management is set to Minimize.
The BSRs are:
| BSR ID | BS D ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status | Remarks |
|---|---|---|---|---|---|---|---|---|
| BSR-1 | BS D-1 | Regular | Fee | 01-October-2024 | 31-October-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-2 | BS D-2 | Regular | Fee | 01-November-2024 | 30-November-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-3 | BS D-3 | Regular | Fee | 01-December-2024 | 31-December-2024 | USD 360.00 | Pending Billing | Schedule outside amendment |
| BSR-4 | BS D-4 | Regular | Fee | 01- January-2025 | 31- January-2025 | USD 450.00 | Pending Billing | Schedule not impacted by amendment |
| BSR-5 | BS D-5 | Regular | Fee | 01- February-2025 | 28- February-2025 | USD 450.00 | Pending Billing | Schedule not impacted by amendment |
| BSR-6 | BS D-6 | Regular | Fee | 01- March-2025 | 31- March-2025 | USD 450.00 | Pending Billing | Schedule not impacted by amendment |
| BSR-7 | BS D-7 | Regular | Fee | 01- April-2025 | 30- April-2025 | USD 350.00 | Pending Billing | Schedule not impacted by amendment |
| .... | .... | ..... | ..... | ..... | .... | .... | .... | ..... |
| BSR-9 | BS D-9 | Regular | Fee | 01-June-2025 | 30-June-2025 | USD 350.00 | Pending Billing | Schedule not impacted by amendment |
| BSR-10 | BS D-10 | Regular | Fee | 01-July-2025 | 31-July-2025 | USD 450.00 | Pending Billing | The fee amount is rolled up from the BSD-10 and Counter BSDs 10.a, 10.b and 10.c. |
| ... | .... | .... | .... | .... | .... | .... | .... | .... |
| BSR-35 | BS D-35 | Regular | Fee | 01-August-2027 | 31-August-2027 | USD 450.00 | Pending Billing | The fee amount is rolled up from the BSD-35 and Counter BSDs 35.a and 35.b. |
| BSR-36 | BS D-36 | Regular | Fee | 01-September-2027 | 30-September-2027 | USD 450.00 | Pending Billing | The fee amount is rolled up from the BSD-36 and Counter BSDs 36.a and 36.b. |
The BSDs are:
| BSD ID | BSR ID | Record Type | Category | Period Start Date | Period End Date | Actual Fee Amount | Invoice Status | Remarks |
|---|---|---|---|---|---|---|---|---|
| BSD-1 | BSR-1 | Regular | Fee | 01-October-2024 | 31-October-2024 | USD 360.00 | Pending | Existing BSD and Counter BSD not impacted by this amendment |
| BSD-2 | BSR-2 | Regular | Fee | 01-November-2024 | 30-November-2024 | USD 360.00 | Pending | |
| BSD-3 | BSR-3 | Regular | Fee | 01-December-2024 | 31-December-2024 | USD 360.00 | Pending | |
| BSD-4 | BSR-4 | Regular | Fee | 01-January-2025 | 31-January-2025 | USD 360.00 | Pending | |
| BSD-4.a | Regular | Fee | 01-January-2025 | 31-January-2025 | USD 90.00 | Pending | ||
| BSD-5 | BSR-5 | Regular | Fee | 01-February-2025 | 28-February-2025 | USD 360.00 | Pending | |
| BSD-5.a | BSR-5 | Regular | Fee | 01-February-2025 | 28-February-2025 | USD 90.00 | Pending | |
| BSD-6 | BSR-6 | Regular | Fee | 01-March-2025 | 31-March-2025 | USD 360.00 | Pending | |
| BSD-6.a | BSR-6 | Regular | Fee | 01-March-2025 | 31-March-2025 | USD 90.00 | Pending | |
| BSD-7 | BSR-7 | Regular | Fee | 01-April-2025 | 30-April-2025 | USD 360.00 | Pending | BSD from new sale |
| BSD-7.a | BSR-7 | Regular | Fee | 01-April-2025 | 30-April-2025 | USD 90.00 | Pending | Counter BSD-7.a from the previous amendment |
| BSD- 7.b | BSR -7.b | Regular | Fee | 01- April-2025 | 30- April-2025 | (USD 100.00) | Pending | Counter BSD-7.b created for this amendment. BSD-7.b can be used to offset the revenue forecast from the previous BSD-7. |
| BSD- 8 | BSR -8 | Regular | Fee | 01- May-2025 | 31-May-2025 | USD 360.00 | Pending | Same explanation as BSD-7. |
| BSD- 8.a | Regular | Fee | 01- May-2025 | 31-May-2025 | USD 90.00 | Pending | Same explanation as BSD-7.a. | |
| BSD- 8.b | Regular | Fee | 01- May-2025 | 31-May-2025 | (USD 100.00) | Pending | Same explanation as BSD-7.b. | |
| BSD- 35 | BSR -35 | Regular | Fee | 01- August-20 27 | 31- August-2027 | USD 450.00 | Pending | Same explanation as BSD-7. |
| BSD- 35.a | Regular | Fee | 01- August-20 27 | 31- August-2027 | USD 90.00 | Pending | Same explanation as BSD-7.a. | |
| BSD- 35.b | Regular | Fee | 01- August-20 27 | 31- August-2027 | (USD 100.00) | Pending | Same explanation as BSD-7.b. | |
| BSD- 36 | BSR -36 | Regular | Fee | 01- September -2027 | 30- September-2 027 | USD 450.00 | Pending | Same explanation as BSD-7. |
| BSD- 36.a | Regular | Fee | 01- September -2027 | 30- September-2 027 | USD 90.00 | Pending | Same explanation as BSD-7.a. | |
| BSD- 36.b | Regular | Fee | 01- September -2027 | 30- September-2 027 | (USD 100.00) | Pending | Same explanation as BSD-7.b. |