Use Case: Different Renewal Dates
This section provides use cases for different renewal dates. When you are renewing an asset, CPQ provides the following renewal date options and the asset will be renewed until the date you select:
- Using Proposal End Date
- Retaining the Asset End Date
- Using the Farthest End Date
- Entering a Renewal Date
For renewal transactions, Asset Start Date will always be the current Asset End Date + 1. The Asset End Date is derived from the selected renewal options.
Let us take an example to understand how an asset is renewed based on your selection of the Renewal options.
For an Account 'TierOne', you have created a proposal ‘W3Courses’ which has a Start Date ‘01/01/2016’ and End Date ‘12/31/2017’. The proposal contains the following Assets:
|
Asset Name |
Asset Status |
Start Date |
End Date |
Selling Term |
|---|---|---|---|---|
|
Programming with Python course |
Activated |
01/01/2016 |
06/30/2016 |
6 months |
|
JAVA Learning |
Activated |
01/01/2016 |
12/31/2016 |
12 months |
|
CSS Learning |
Activated |
01/01/2016 |
12/31/2017 |
24 months |
Your subscriber wants to renew the subscription for the ‘Programming with Python course’ asset. Let us see how renewal works with each of the options:
Using Proposal End Date
This option fetches the Proposal End Date from an active proposal which the selected asset is a part of. The Proposal End Date in this example is ‘12/31/2017’ and so the asset will be renewed till this date. Since Asset Start Date will be the current Asset End Date + 1, in this case the Asset Start Date becomes ‘07/01/2016’.
|
Asset Name |
Asset Status |
Start Date |
End Date |
Selling Term |
|---|---|---|---|---|
|
Programming with Python course |
Activated |
07/01/2016 |
12/31/2017 |
17 months |
The asset is renewed for 17 months from a revised date of start. The ‘Action’ field on Asset Transaction History is set to Renew.
Retaining the Asset End Date
The most common practice is to renew an asset immediately after it expires. This option renews an asset with the same term from its current End Date. For example, if the selling term for an asset is 24 months (2 years), the asset will be renewed for 2 further years after the asset expires.
In this scenario, the Asset is renewed for another 6 months (derived from the Selling Term) from its Start Date.
|
Asset Name |
Asset Status |
Start Date |
End Date |
Selling Term |
|---|---|---|---|---|
|
Programming with Python course |
Activated |
07/01/2016 |
12/31/2016 |
6 months |
Farthest End Date
The Farthest End Date option is visible only:
- If the asset has more than one renewable charge type
- If you select more than one asset with different end dates
An account can have multiple assets with varying start and end dates and selling terms. When you select the Farthest End Date option during renewal, CPQ identifies the asset with the farthest asset end date and sets that asset's renewal end date as the renewal end date for all other assets while adjusting the selling term. Calculation happens as follows:
- Renewal start date = Asset end date +1 (for all assets)
- Renewal end date = Farthest end date based on the renewal end date of the asset that has the farthest asset end date (common for all renewed assets)
- Selling term = Farthest renewal end date – Renewal start date
Let us assume that an account has three assets with the following details:
|
Asset Name |
Asset Status |
Start Date |
End Date |
Selling Term |
|---|---|---|---|---|
|
Programming with Python course |
Activated |
01/01/2016 |
12/31/2016 |
12 months |
|
JAVA Learning |
Activated |
01/01/2016 |
06/30/2016 |
6 months |
|
CSS Learning |
Activated |
01/01/2016 |
10/31/2016 |
10 months |
In the example above, the asset "Programming with Python course" has the farthest asset end date (12/31/2016). The selling term of this asset is 12 months.
While renewing these assets with the Farthest End Date option, CPQ populates the renewed assets with the following details:
|
Asset Name |
Asset Status |
Start Date |
End Date |
Selling Term |
|---|---|---|---|---|
|
Programming with Python course |
Renewed |
01/01/2017 |
12/31/2017 |
12 months |
|
JAVA Learning |
Renewed |
07/01/2016 |
12/31/2017 |
18 months |
|
CSS Learning |
Renewed |
11/01/2016 |
12/31/2017 |
14 months |
The renewal end date of the asset "Programming with Python course" is 12/31/2017. CPQ sets the renewal end date for all other assets as 12/31/2017. CPQ adjusts the selling term of the asset "JAVA Learning" as 18 months to accommodate the farthest renewal end date. CPQ adjusts the selling term of the asset "CSS Learning" as 14 months to accommodate the farthest renewal end date.
Renewal Date
Instead of pulling a renewal date from various sources, if you want to explicitly specify a Renewal End Date you can do so by selecting this option. If you enter ‘01/01/2018’ as the renewal date, the Asset will be renewed as
|
Asset Name |
Asset Status |
Start Date |
End Date |
Selling Term |
|---|---|---|---|---|
|
Programming with Python course |
Activated |
07/01/2016 |
01/01/2018 |
18 months |
Please ensure the Renewal Date entered here is greater than the Asset End Date.
