Single Delta Billing Schedule for Mid-Cycle Amendment
When you perform a midcycle amendment on an invoiced asset, Billing Management creates two billing schedules:
- A negative billing schedule for the credit amount and
- A new billing schedule to reflect the price changes.
For example, you are the billing administrator for a hardware company. You have billed and invoiced your client quarterly for products worth $3,000 per quarter. The billing schedules are as follows:
|
Billing Schedule |
Start Date |
End Date |
Fee Amount |
Status |
|---|---|---|---|---|
|
BS1 |
01 Jan 2019 |
31 Mar 2019 |
$3,000 |
Invoiced |
|
BS2 |
01 Apr 2019 |
30 Jun 2019 |
$3,000 |
Invoiced |
|
BS3 |
01 Jul 2019 |
30 Sep 2019 |
$3,000 |
Invoiced |
|
BS4 |
01 Oct 2019 |
31 Dec 2019 |
$3,000 |
Invoiced |
On 01 May 2019, you perform an asset amendment to provide a price mark of 50%. After order activation, you see the following billing schedules:
|
Billing Schedule |
Start Date |
End Date |
Fee Amount |
Status |
|---|---|---|---|---|
|
BS5 |
01 May 2019 |
30 Jun 2019 |
-($2,000) |
Pending Billing |
|
BS6 |
01 May 2019 |
30 Jun 2019 |
$3,000 |
Pending Billing |
|
BS7 |
01 Jul 2019 |
30 Sep 2019 |
$1,500 |
Pending Billing |
|
BS8 |
01 Oct 2019 |
31 Dec 2019 |
$1,500 |
Pending Billing |
Here, $2,000 is credited back to the customer for the months of May and June. BS7 is created for the months of May and June with the new markup amount.
Instead of having a negative billing schedule, you can invoice your customers directly for the delta amount.
