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Manage Your Billing Processes with Salesforce Billing
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            Invoicing Canceled Evergreen Subscriptions

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            Invoicing Canceled Evergreen Subscriptions

            When you cancel an evergreen order product, Salesforce Billing evaluates its billable unit price to create the Cancel Order Product. It then calculates pending billings for either the original product or the Cancel Order Product based on the termination date. (Salesforce Billing Managed Package)

            Required Editions

            Available in: Salesforce CPQ Spring ’19 and later

            For a general overview of cancellation orders, check out Cancellation Order Management.

            Salesforce Billing handles evergreen cancellations differently based on whether your order product's charge date falls before or after its terminated date.

            Next Charge Date Before Terminated Date

            Salesforce Billing charges your customer on the original order product for the billing periods between the two dates.

            This scenario occurs when a customer wants to cancel their evergreen subscription as of a predetermined time in the future. In this case, you'll make an amendment quote and set its start date to the date that the cancellation takes effect. After you contract your opportunity and order the amendment quote, your Cancel Order Product shows a total amount that's the opposite of your original order product's total.

            For example, let's say your evergreen subscription bills monthly for $10 at the first of the month, starting 01/01/17. At the end of May, your customer decides to cancel their subscription as of October 1. You amend your quote, set the amendment quote's start date to 10/1/2017, then contract and order it.

            Order Product Total Billed Pending Canceled Dates
            Original $10 $50 $0 $0  
            Cancel -$10 $0 $0 $0  

            When you activate the Cancel Order Product, Salesforce Billing calculates the pending billings between the original order product's next charge date and its terminated date. Since there are four billing periods between 06/01/2017 and 09/31/2017, Salesforce Billing multiplies 4 by the billable unit price of $10 to calculate the original order product's Pending Billings. This represents the amount you'll need to charge your customer between June 1 and September 31.

            Order Product Total Billed Pending Canceled Dates
            Original $10 $50 $40 $0
            • Next Billing Date: 01/01/17
            • Next Charge Date: 01/01/17
            • Terminated Date: 09/31/17
            Cancel -$10 $0 $0 $0 Terminated Date: 09/31/17

            Since you're billing monthly, Salesforce continues to invoice your customer for $10 per month until the terminated date.

            06/01/17 through 06/30/17
            Invoice Line Total: $10
            07/01/17 through 07/31/17
            Invoice Line Total: $10
            08/01/17 through 08/31/17
            Invoice Line Total: $10
            09/01/17 through 09/30/17
            Invoice Line Total: $10

            You could also change your target date to September 30 to bill for the entire pending $40 on one invoice.

            Next Charge Date After Terminated Date

            In this case, your customer has already paid for at least one billing period and you need to refund them for the periods between terminated date and the next charge date.

            For example, let's say your evergreen subscription bills monthly for $10 at the first of the month, starting 01/01/17. Your customer wanted to pay in advance, so you've billed them through the end of the year. However, they decide they want to cancel their contract as of 10/01/17.

            In this case, you'll make an amendment quote and set its start date to the date that the cancellation should take effect. After you contract your opportunity and order the amendment quote, Salesforce CPQ creates a Cancel Order Product with a total that represents one canceled billing period.

            Order Product Total Billed Pending Canceled Dates
            Original $10 $120 $0 $0
            • Next Billing Date: 01/01/18
            • Next Charge Date: 01/01/18
            Cancel -$10 $0 $0 $0
            • Next Billing Date: 10/01/17
            • Next Charge Date: 10/01/17

            When you activate your cancel order product, Salesforce Billing calculates its total pending billings. This value equals the inverse sum of billing period charges between the Cancel Order Product's terminated date and the original order product's next charge date. Since you have three months between these dates at a rate of -$10 per month, you have -$30 in pending billings.

            Order Product Total Billed Pending Canceled Dates
            Original $10 $120 $0 $0
            • Next Billing Date: 01/01/18
            • Next Charge Date: 01/01/18
            Cancel -$10 $0 -$30 $0
            • Next Billing Date: 10/01/17
            • Next Charge Date: 10/01/17

            Since you're canceling the order after the customer has made several payments, Salesforce Billing considers the original order product completed and won't invoice it anymore. Salesforce Billing picks up your Cancel Order Product with the next invoice run or Bill Now process.

             
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