Evergreen Assets Generate $0 Invoice After Cancellation

This is expected behavior. Rather than immediately shutting down a record on its cancellation date, ARM uses a ledger-based settlement process. This approach preserves absolute accounting traceability ensuring subledger data remains consistent and auditable.

Rather than immediately changing the original Billing Schedule status to "Completely Billed,” the billing engine balances the books using these automated steps:

• The original schedule stays active: The original (positive) Billing Schedule remains active to preserve historical data.
• A counter-balancing schedule is created: The cancellation action generates a new, negative Billing Schedule.
• The Invoice Scheduler evaluates both schedules: The billing engine evaluates both positive and negative schedules together to issue a negative invoice, refunding any periods billed post-cancellation.
• The final $0 invoice settles the balance: Once the positive and negative amounts balance out, the system generates a final $0 invoice. This zero-dollar invoice is the required mechanism that closes both schedules and marks them as Completely Billed. No further Invoices would be produced from the Billing Schedules.

Note: This final invoice acts as the closing mechanism. Once all related invoices are generated and change to a Posted status, the Billing Schedule status automatically updates to Completely Billed.

Common Scenario Breakdowns

To help visualize how this looks in practice, review these two typical tracking scenarios:

• Scenario A: Cancellation Before the Next Billing Term If a monthly evergreen subscription is invoiced for May 1 to May 31 and cancelled effective June 1, you might assume no June invoice is needed. However, to cleanly close the records, both the original and cancellation schedules sit in Ready for Invoicing status for the June 1 to June 30 period. Running the scheduler generates a $0 invoice, which officially triggers the status change to Completely Billed.
• Scenario B: Retrospective Mid-Term Cancellation If a customer pays $1,000 monthly for January, February, and March, but cancels retrospectively starting in March, the engine needs to reconcile the balance. It generates one negative invoice for -$1,000 to issue the March refund, and then generates a separate $0 invoice to settle both active schedules for the April period.

Billing Schedules must temporarily remain in Ready for Invoicing status after the cancellation date, as both schedules need to be picked up by the same Billing Batch Scheduler to process the final settlement.