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Invoicing Evergreen Subscriptions
When your order product has an Evergreen subscription type, Salesforce Billing invoices it each billing period indefinitely. This way, you can charge customers for subscriptions until they decide to cancel. Salesforce Billing determines an evergreen subscription's invoiceable balance for one billing period based off the order product's billable unit price. (Salesforce Billing Managed Package)
Required Editions
| Available in: Salesforce Billing Spring ’19 and later |
When a sales rep quotes an evergreen subscription product, Salesforce CPQ sets the quote line's subscription term to 1. This allows the quote line's net total price to represent one month of billing for forecasting purposes. When they order the quote, the resulting order product inherits the subscription term of one. Users can't change an evergreen quote line or order product's subscription term. Evergreen order products always have a prorate multiplier of one as well.
Since the order product's subscription term and prorate multiplier is always one, Salesforce CPQ uses the following simplified formula to calculate the the order product's billable unit price.
(Order Product's Total Price * Order Product's Billing Frequency) /
(Order Product's Prorate Multiplier * Default Subscription Term)
Let's look at a few examples.
| Total Price | Billing Frequency | Prorate Multiplier | Default Subscription Term | Billable Unit Price |
|---|---|---|---|---|
| $1200 | Monthly (1) | 1 | 12 | $100 |
| $4000 | Monthly (1) | 1 | 16 | $250 |
| $4000 | Quarterly (3) | 1 | 16 | $750 |
Since your evergreen subscription doesn't have an end date, Salesforce Billing invoices its order product for its billable unit price until you cancel the order product.
Bookings Amount for Evergreen Subscriptions
The order product field Order Product Bookings represents the total amount that Salesforce Billing will invoice the order product for across all its billing periods, also known as the bookings amount. Many companies that recognize revenue from the order product use this field for forecasting purposes.
For standard subscriptions, an order product's total amount and bookings amount are always the same. However, an evergreen subscription has no predefined end date, so its total amount may not be the same as the actual amount you end up billing for. To prevent inaccurate data, Salesforce Billing always sets the bookings amount for an evergreen subscription order product to 0.
Your revenue recognition treatment's Revenue Schedule Amount field drives the billing field that Salesforce Billing uses to determine the total amount of your revenue schedule. When you recognize revenue on the order product, set your revenue schedule amount to Bookings Amount. When Salesforce Billing creates a revenue schedule for an order product related to that treatment, it sets the total revenue amount to the same value as the order product's bookings amount. This setup ensures that standard subscription products always have revenue schedules reflecting their total forecasted amount, while evergreen subscriptions always have revenue schedules with a total revenue amount of zero.
- Overriding Billable Unit Price for Evergreen Subscriptions
The order product's Override Billable Unit Price field lets you define a custom billable unit price for your evergreen subscriptions. This field is useful for changing the price that Salesforce Billing uses to invoice an evergreen subscription's order product. You can also use it to override the billable unit price on evergreen subscription records that were migrated to Salesforce Billing. (Salesforce Billing Managed Package)
