Example 1: Cancelling Recurring asset
Suppose you are a billing administrator of a company selling computer hardware with a TCV of $5400 for 36 billing terms. You have already invoiced the customer for an amount of $2400 over a billing period of 16 months billing term in the legacy system and the remaining billable amount is $3000 to be billed over 20 months. The legacy contract was started in 2018 but the last known major price or config happened on 7/20/21. So the asset's start date is 7/20/21. Let's consider the first Billing Date as 11/20/2022.
Scenario 1: Performing partial cancellation at the end of the ongoing billing Period
Suppose you have invoiced a few of the future billing schedules. You want to initiate a partial cancellation of the deal at the end of a billing period say 3/20/2023. The system generates the billing schedules as shown in the table below and updates the remaining billable amount to $0.00. A refund of $600 will be credited to the customer.
For the invoiced period a refund is initiated and for the un-invoiced period, the status is updated to "Cancelled".
|
Billing Schedule ID |
Period Start Date |
Period End Date |
Fee Amount |
Ready for Invoice Date |
Type |
Status |
Legacy record? |
Superseded |
|---|---|---|---|---|---|---|---|---|
|
BS-001 |
7/20/2021 |
11/19/2022 |
$2,400.00 |
7/20/2021 |
Informational |
Invoiced |
TRUE |
|
|
BS-002 |
11/20/2022 |
12/19/2022 |
$150.00 |
11/20/2022 |
Contracted |
Invoiced |
||
|
BS-003 |
12/20/2022 |
1/19/2023 |
$150.00 |
12/20/2022 |
Contracted |
Invoiced |
||
|
BS-004 |
1/20/2023 |
2/19/2023 |
$150.00 |
1/20/2023 |
Contracted |
Invoiced |
||
|
BS-005 |
2/20/2023 |
3/19/2023 |
$150.00 |
2/20/2023 |
Contracted |
Invoiced |
||
|
BS-006 |
3/20/2023 |
4/19/2023 |
$150.00 |
3/20/2023 |
Contracted |
Invoiced |
yes |
|
|
BS-007 |
4/20/2023 |
5/19/2023 |
$150.00 |
4/20/2023 |
Contracted |
Invoiced |
yes |
|
|
BS-008 |
5/20/2023 |
6/19/2023 |
$150.00 |
5/20/2023 |
Contracted |
Invoiced |
yes |
|
|
BS-009 |
6/20/2023 |
7/19/2023 |
$150.00 |
6/20/2023 |
Contracted |
Invoiced |
yes |
|
|
BS-010 |
7/20/2023 |
8/19/2023 |
$150.00 |
7/20/2023 |
Contracted |
Cancelled |
||
|
BS-011 |
8/20/2023 |
9/19/2023 |
$150.00 |
8/20/2023 |
Contracted |
Cancelled |
||
|
BS-012 |
9/20/2023 |
10/19/2023 |
$150.00 |
9/20/2023 |
Contracted |
Cancelled |
||
|
BS-013 |
10/20/2023 |
11/19/2023 |
$150.00 |
10/20/2023 |
Contracted |
Cancelled |
||
|
BS-014 |
11/20/2023 |
12/19/2023 |
$150.00 |
11/20/2023 |
Contracted |
Cancelled |
||
|
BS-015 |
12/20/2023 |
1/19/2024 |
$150.00 |
12/20/2023 |
Contracted |
Cancelled |
||
|
BS-016 |
1/20/2024 |
2/19/2024 |
$150.00 |
1/20/2024 |
Contracted |
Cancelled |
||
|
BS-017 |
2/20/2024 |
3/19/2024 |
$150.00 |
2/20/2024 |
Contracted |
Cancelled |
||
|
BS-018 |
3/20/2024 |
4/19/2024 |
$150.00 |
3/20/2024 |
Contracted |
Cancelled |
||
|
BS-019 |
4/20/2024 |
5/19/2024 |
$150.00 |
4/20/2024 |
Contracted |
Cancelled |
||
|
BS-020 |
5/20/2024 |
6/19/2024 |
$150.00 |
5/20/2024 |
Contracted |
Cancelled |
||
|
BS-021 |
6/20/2024 |
7/19/2024 |
$150.00 |
6/20/2024 |
Contracted |
Cancelled |
||
|
BS-022 |
3/20/2023 |
4/19/2023 |
-$150.00 |
3/20/2023 |
Contracted |
Pending Billing |
||
|
BS-023 |
4/20/2023 |
5/19/2023 |
-$150.00 |
4/20/2023 |
Contracted |
Pending Billing |
||
|
BS-024 |
5/20/2023 |
6/19/2023 |
-$150.00 |
5/20/2023 |
Contracted |
Pending Billing |
||
|
BS-025 |
6/20/2023 |
7/19/2023 |
-$150.00 |
6/20/2023 |
Contracted |
Pending Billing |
Scenario 2: Performing partial cancellation in mid of the ongoing billing period
Suppose you have invoiced a few of the future billing schedules. You want a partial cancellation of the deal in the middle of a billing period say 5/31/2023. The system generates the billing schedules as shown in the table below and updates the remaining billable amount to $0.00. A refund of $241.94 will be credited to the customer.
|
Billing Schedule ID |
Period Start Date |
Period End Date |
Fee Amount |
Ready for Invoice Date |
Type |
Status |
Legacy record? |
Superseded |
|---|---|---|---|---|---|---|---|---|
|
BS-001 |
7/20/2021 |
11/19/2022 |
$2,400.00 |
7/20/2021 |
Informational |
Invoiced |
TRUE |
|
|
BS-002 |
11/20/2022 |
12/19/2022 |
$150.00 |
11/20/2022 |
Contracted |
Invoiced |
||
|
BS-003 |
12/20/2022 |
1/19/2023 |
$150.00 |
12/20/2022 |
Contracted |
Invoiced |
||
|
BS-004 |
1/20/2023 |
2/19/2023 |
$150.00 |
1/20/2023 |
Contracted |
Invoiced |
||
|
BS-005 |
2/20/2023 |
3/19/2023 |
$150.00 |
2/20/2023 |
Contracted |
Invoiced |
||
|
BS-006 |
3/20/2023 |
4/19/2023 |
$150.00 |
3/20/2023 |
Contracted |
Invoiced |
||
|
BS-007 |
4/20/2023 |
5/19/2023 |
$150.00 |
4/20/2023 |
Contracted |
Invoiced |
||
|
BS-008 |
5/20/2023 |
6/19/2023 |
$150.00 |
5/20/2023 |
Contracted |
Invoiced |
yes |
|
|
BS-009 |
6/20/2023 |
7/19/2023 |
$150.00 |
6/20/2023 |
Contracted |
Invoiced |
yes |
|
|
BS-010 |
7/20/2023 |
8/19/2023 |
$150.00 |
7/20/2023 |
Contracted |
Cancelled |
||
|
BS-011 |
8/20/2023 |
9/19/2023 |
$150.00 |
8/20/2023 |
Contracted |
Cancelled |
||
|
BS-012 |
9/20/2023 |
10/19/2023 |
$150.00 |
9/20/2023 |
Contracted |
Cancelled |
||
|
BS-013 |
10/20/2023 |
11/19/2023 |
$150.00 |
10/20/2023 |
Contracted |
Cancelled |
||
|
BS-014 |
11/20/2023 |
12/19/2023 |
$150.00 |
11/20/2023 |
Contracted |
Cancelled |
||
|
BS-015 |
12/20/2023 |
1/19/2024 |
$150.00 |
12/20/2023 |
Contracted |
Cancelled |
||
|
BS-016 |
1/20/2024 |
2/19/2024 |
$150.00 |
1/20/2024 |
Contracted |
Cancelled |
||
|
BS-017 |
2/20/2024 |
3/19/2024 |
$150.00 |
2/20/2024 |
Contracted |
Cancelled |
||
|
BS-018 |
3/20/2024 |
4/19/2024 |
$150.00 |
3/20/2024 |
Contracted |
Cancelled |
||
|
BS-019 |
4/20/2024 |
5/19/2024 |
$150.00 |
4/20/2024 |
Contracted |
Cancelled |
||
|
BS-020 |
5/20/2024 |
6/19/2024 |
$150.00 |
5/20/2024 |
Contracted |
Cancelled |
||
|
BS-021 |
6/20/2024 |
7/19/2024 |
$150.00 |
6/20/2024 |
Contracted |
Cancelled |
||
|
BS-022 |
6/1/2023 |
6/19/2023 |
-$91.94 |
6/1/2023 |
Contracted |
Pending Billing |
||
|
BS-023 |
6/20/2023 |
7/19/2023 |
-$150.00 |
6/20/2023 |
Contracted |
Pending Billing |
The deal is partially cancelled and the remaining billable amount is updated to $0.00 since there is nothing to be billed in future.
