Changing Billing Schedules when you Reduce the Start Date of an Asset
You are a customer service representative for a software company and you reduce the Start Date of a customer's software subscription plan mid-cycle when the status of each Billing Schedule is Pending Billing.
Before you reduce the Start Date of the subscription, you see the following Billing Schedules.
|
Schedule |
Period Start |
Period End |
Status |
Fee Amount |
Superseded |
|---|---|---|---|---|---|
|
BS1 |
1/1/2015 |
1/31/2015 |
Invoiced |
100.00 |
|
|
BS2 |
2/1/2015 |
2/28/2015 |
Invoiced |
100.00 |
|
|
BS3 |
3/1/2015 |
3/31/2015 |
Pending Invoiced |
100.00 |
After you reduce the Start 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Superseded |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 |
1/1/2015 |
1/31/2015 |
Invoiced |
100.00 |
|
|
BS2 |
2/1/2015 |
2/28/2015 |
Invoiced |
100.00 |
Yes |
|
BS4 |
2/15/2015 |
2/28/2015 |
Pending Billing |
-50.00 |
|
|
BS5 |
2/15/2015 |
2/28/2015 |
Pending Billing |
60.00 |
|
|
BS3 |
3/1/2015 |
3/31/2015 |
Superseded |
100.00 |
Yes |
|
BS6 |
3/1/2015 |
3/31/2015 |
Pending Billing |
120.00 |
|
Example
You are a customer service representative for a software company. You must reduce the Start Date of a customer's software subscription plan and change the Net Price mid-cycle when the status of each Billing Schedule is Pending Billing.
After you reduce the Start Date and change the Net Price of the subscription, the number of and the status of each Billing Schedule changes.
|
Schedule |
Period Start |
Period End |
Status |
Fee Amount |
Superseded |
|---|---|---|---|---|---|
|
BS1 |
1/1/2015 |
1/31/2015 |
Invoiced |
100.00 |
Yes |
|
BS7 |
1/1/2015 |
1/31/2015 |
Pending Invoiced |
-20.00 |
|
|
BS2 |
2/1/2015 |
2/28/2015 |
Invoiced |
100.00 |
Yes |
|
BS8 |
2/1/2015 |
2/28/2015 |
Pending Invoiced |
-20.00 |
|
|
BS4 |
2/15/2015 |
2/28/2015 |
Superseded |
-50.00 |
Yes |
|
BS5 |
2/15/2015 |
2/28/2015 |
Superseded |
60.00 |
Yes |
|
BS3 |
3/1/2015 |
3/31/2015 |
Superseded |
100.00 |
Yes |
|
BS6 |
3/1/2015 |
3/31/2015 |
Superseded |
120.00 |
Yes |
|
BS9 |
3/1/2015 |
3/31/2015 |
Pending Billing |
80.00 |
|
Because you moved the Start Date back to January 1 and the January Billing Schedule is invoiced, it remains invoiced and is augmented with a new Billing Schedule.
- BS7 is the new Billing Schedule for January that reflects the new charge after the amount that was previously invoiced is subtracted from it (80.00 – 100.00). This is why the Fee Amount is -20.00.
The following pending Billing Schedules for February are augmented.
- BS4 is the Billing Schedule for the 50.00 credit is marked as Superseded.
- BS5 The Billing Schedule for the 60.00 debit is marked as Superseded.
- BS8 is the new Billing Schedule created to reflect the new amount to charge for. Because the first Billing Schedule is invoiced at a higher rate, the Account will receive a credit for 20.00.
Because of the Billing Schedule for March, BS6 is unbilled it is superseded and replaced by a Billing Schedule that reflects the new amount to bill for.
