Use Case: Terminating Renewed Assets
This use case describes how CPQ determines the billing amount when a renewed asset is terminated mid-term. CPQ uses the net price of the current renewal period, not the cumulative total from the inception of the asset, as the basis for the refund calculation displayed on the Confirm Termination page.
- An active asset exists that has been through at least one renewal cycle.
- The renewed asset has a different net price or selling term from the original sale.
- 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 that has already gone through one or more renewal cycles, the refund owed relates only to the unused portion of the current renewal period, not to the full lifetime value of the asset since its original purchase date. Conga CPQ enforces this by displaying only the Current Net Price of the asset on the Confirm Termination page, giving the sales representative and the billing team an accurate, period-scoped view of the termination value. This use case walks through a product sold in 2019, renewed in 2020 with a shorter selling term and a different net price, and then terminated mid-renewal. It demonstrates that CPQ scopes the termination refund to the renewal period net price (USD 1,000), not the original sale net price (USD 1,200) or the cumulative total (USD 2,200).
Business Context
The Problem
A customer purchased a 12-month software subscription in 2019 at USD 1,200. At the end of the year, the customer renewed for a 10-month term in 2020 at USD 1,000 — a reduced commitment reflecting a change in business requirements. Partway through the renewal period, the customer requests early termination. The sales representative needs to confirm the correct termination value before processing. If CPQ displayed the total lifetime asset value (USD 2,200) on the Confirm Termination page, the sales representative could inadvertently process a refund that covers amounts already invoiced and consumed in the original sale year — leading to an incorrect credit note and a financial discrepancy.
The Solution
Conga CPQ scopes the Confirm Termination page to the Current Net Price of the asset — the net price of the most recent active renewal period. In this case, that is USD 1,000 (the 2020 renewal). The refund calculation the billing team uses is therefore based on what the customer is actually owed for the unused portion of their current term, not on the historical total. The Total Contract Value (TCV) of USD 2,200 is held in the asset record for audit purposes but does not drive the termination billing.
- Sales Representative — Creates the original sale, processes the renewal, activates the order, and initiates the asset termination.
- Conga CPQ — Tracks the current and total net prices separately across the asset lifecycle and displays the correct current-period net price on the Confirm Termination page.
- Billing Team — Uses the value shown on the Confirm Termination page to calculate and issue the correct credit note for the unused portion of the renewal term.