Happy Business Starts Here

Change subscription start/end date after billing

Highlighted
Senior Tutor

Change subscription start/end date after billing

Example:

Customer had original subscription and contract term start date of 08/01/2016. However, they wanted to delay the beginning of the subscription by two months to begin on 10/01/2016. I had already invoiced them for the original quarterly billing terms.

 

My current solution:

  • Cancel current invoice dated 8/1/16
  • Create amendment to current subscription to adjust dates
  • Re-do the billing and reiusse a new invoice dated 10/1/16

Problems this causes:

  • By cancelling the invoice, it doesn't actually create an adjustment in the jounral entries
  • I end up manually adjusting the rev-rec, AR, and deferred accounts for Aug and Sep
  • Potential increase for "human error"
  • Not a scaleable solution

Question:

Is there any way to adjust the start date and adjust the invoice and rev rec dates without going through this whole process? 

4 REPLIES 4
Highlighted
Support SME

Re: Change subscription start/end date after billing

Hello,

 

We are reviewing your request with one of our specialists to verify a logical process to adjust the start date and adjust the invoice and rev rec dates without going through this whole process.






If you found my answer helpful, please give me a kudo ↑
Help others find answers faster by accepting my post as a solution √

Highlighted
Support SME

Re: Change subscription start/end date after billing

Hello,

 

After further review with our finance specialist your current solution will work however, you will have to redo your journal summary if you have already ran it. The new journal entries created will be listed in the corresponding accounting period.

 

If you have already closed the accounting period, then the suggested solution would be to write off the current invoice using an Invoice Item Adjustment then cancel the current subscription and start over with a new subscription with the correct dates.

 

Resources:

Invoice Item Adjusment - write-off

Cancelling Subscription

Journal Runs






If you found my answer helpful, please give me a kudo ↑
Help others find answers faster by accepting my post as a solution √

Highlighted
Valued Scholar

Re: Change subscription start/end date after billing

Hi Rolando,

 

Looking at your solution to cancel and recreate the subscription, this would cause issues in reporting, correct?  There would be artificially higher new MRR and churned MRR -- for example, higher MRR in August, canceled MRR in September, and new MRR in October.

 

I still think there should be a way for us to change subscription start/end dates after billing without the need to reopen accounting periods.  As an accountant, I want my historicals to be locked and not changed.

Highlighted
Zuora Staff

Re: Change subscription start/end date after billing

Hello,

 

Since the accounting period has already been closed and the invoice was created, you would need to do an amendment to remove the product as of the original effective date. After the amendment has been created to remove the product in the subscription,click on the more button and preview. You should be able to view the original invoice that was already posted and the invoice with the credit to credit back for the original invoice. If the invoices looks correct, you can create a bill run to generate the negative invoice on the account. You will be able to view the revenue schedule on the original invoice and compare it the negative invoice revenue schedule, they should be the same, one with with a debit and the other with a credit. You will then need to post an invoice item adjustment on both original invoice and negative invoice to zero them out.

 

Next, you will need to go back to the subscription to process an amendment to add the product and rate plan back to the customer account with the correct effective dates. After you create the new amendment in the subscription, click on the more button and preview. You will be able to view the invoices before you bill run.

 

The MRR example from kenlee would be correct: higher MRR in August, canceled MRR in September, and new MRR in October

 

Here is an image of how your invoices should look.

Please let us know if you have any further questions.

 

Screenshot (15).png



If you found my answer helpful, please give me a kudo ↑
Help others find answers faster by accepting my post as a solution √