Scenario 4: Expriation
Example of a fully prepaid annual commitment that is billed upfront and then expired at the end of the 1-year term.
Step 1
Create a subscription with a 1-year term and Order Date=2025-05-01, with one rate plan that has three charges:
-
Recurring charge:
$100/Annual -
One-time charge:
$200 -
Usage charge:
$1/unit
Create a commitment starting on 2025-05-01 with period=Year, amount=1200, prepayment Type=fully prepaid, and prepaid Frequency=Annual.
Step 2
Generate a bill run with target date 2025-05-01. One invoice is generated with five invoice items and invoice date 2025-05-01.
Invoice Item | Charge Name | Service Start Date | Service End date | Amount |
|---|---|---|---|---|
II1 | Annual Commitment - Prepaid Installment | 2025-05-01 | 2026-04-30 | 1200 |
II2 | Recurring | 2025-05-01 | 2025-05-31 | 100 |
II3 | Annual Commitment - Credit Application | 2025-05-01 | 2025-05-31 | -100 |
II4 | One Time | 2025-05-01 | 2025-05-01 | 200 |
II5 | Annual Commitment - Credit Application | 2025-05-01 | 2025-05-01 | -200 |
Step 3
Expire the commitment at the end of the commitment period in May 2026.