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Pause/Suspend a Subscription already in the middle of recognizing revenue?

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Pause/Suspend a Subscription already in the middle of recognizing revenue?

I have a customer that bought a 12 month contract and paid the entire fee upfront. Due to econimic hardships they are requesting to place their account 'On Hold' until they can get in better operating status. They are currently in the middle of their contract (about 6 months in) and requesting to place it on hold until further notice. 

 

Any ideas how I can do this so the revenue recognition stops for this account until they notify us otherwise? 

1 REPLY 1
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Zuora Alumni

Re: Pause/Suspend a Subscription already in the middle of recognizing revenue?

Hi Amanda,

 

What would you like to do with the amount the customer has already paid and won't use the service for? For example, if they stopped service today, and resumed again in August, would you want to refund them the amount for the three months they didn't have service for? Would you want to extend the contract by 3 months? 

 

We have recently developed a feature that will allow you to suspend/resume subscriptions, but I am not sure of the revenue impact over a 12 month subscription in your use case. Let me investigate that while you answer the questions above. It may be best to cancel the subscription and when the customer returns, give them a new subscription, but let me validate for sure. 

 

Matt