Use Case: Same Day Cancellation
This use case describes how the Same Day Cancellation setting in assets affects the refund amount when an asset is terminated mid-term. Two scenarios are covered using identical sale and termination data, one with Same Day Cancellation set to True and one set to False, to illustrate the difference in selling term and refund value.
- An active asset exists with a known start date, end date, selling term, and net price.
- The CPQ Administrator has reviewed and set the Same Day Cancellation value to match the organization's billing policy.
- The sales representative has the permissions required to access the Installed Products page and initiate an asset termination.
Overview
When a customer terminates an asset, Conga CPQ calculates the refund based on the period between the asset's start date and the effective cancellation date. The Same Day Cancellation setting determines how the cancellation date entered by the sales representative is interpreted. When set to True, the last active day of service is the day before the reported cancellation date. When set to False, the last active day of service is the reported cancellation date itself. This single-day difference changes the number of months charged, which in turn changes the refund amount. This use case walks through the same 12-month product terminated on 06/30/2017 under both settings, demonstrating the precise impact on selling term and delta price.
Business Context
The Problem
A customer purchases a 12-month software subscription starting 1st Jan 2017 at an annual net price of USD 24,000. Midway through the year, the customer requests cancellation on 30th June 2017. The billing team needs to determine the exact refund amount to issue, but the answer depends on how the organisation has configured the Same Day Cancellation setting. If the setting is True, then 29th June is the last day of the subscription and the refund covers the remaining period from that date. If the setting is False, the cancellation takes effect on 06/30/2017, meaning the customer is charged for 30th June, and the refund is for the remaining period which is 1st July to 31st Dec 2017. Without understanding which setting is active, the sales representative cannot confidently communicate the refund amount to the customer.
The Solution
Conga CPQ applies the Same Day Cancellation setting automatically during the termination calculation. The selling term and delta price shown on the cart reflect the correct effective cancellation date based on the setting. The billing team can rely on these values to issue an accurate credit note without manual adjustment.
- CPQ Administrator — Configures the Same Day Cancellation settings.
- Sales Representative — Initiates the asset termination and enters the termination date on the Installed Products page.
- Conga CPQ — Applies the Same Day Cancellation setting to determine the effective cancellation date, calculates the selling term consumed, and derives the delta price (refund amount).
|
Start Date |
End Date |
Selling Term |
Net Price |
|---|---|---|---|
|
01/01/2017 |
12/31/2017 |
12 |
24,000 |
The customer requests termination on 06/30/2017. The refund outcome depends on the Same Day Cancellation setting active in the organization at the time of termination.
Scenario A — Same Day Cancellation = True
The subscription is terminated on 30th June and the end date considered as 29th June 2017. The selling term consumed is 5.96667 months (01/01/2017 to 06/29/2017), and the refund covers the remaining 6.03333 months of the 12-month term.
|
Start Date |
End Date |
Selling Term |
Net Price |
Delta Price |
|---|---|---|---|---|
|
01/01/2017 |
6/29/2017 |
5.96667 |
12066.66 |
12066.66 |
| Jan to May billing | 2,000 * 5 = 10,000 |
| 1June to 29 June billing |
Per day in June: 2,000/30 = 66.67 29 Days in June: 66.67*29 =1,933.33 |
| Billing from 1st Jan to 29th June | 10,000 + 1,933.33 = 11,933.33 |
| Refund | 24,000-11,933.33 = 12,066.66 |
Scenario B — Same Day Cancellation = False
The subscription is terminated on 30th June and the end date considered is 30th June when Same Day Cancellation setting is False. The refund is calculated for the remaining period that is from 1st July to 31st December. The selling term consumed is 6 months exactly, and the refund covers the remaining 6 months, meaning the customer is charged for one additional day compared to Scenario A.
|
Start Date |
End Date |
Selling Term |
Net Price |
Delta Price |
|---|---|---|---|---|
|
01/01/2017 |
6/30/2017 |
6.00000 |
12000.00 |
12000.00 |