Case 5: Cancel subscription in the middle of the current term
Outlines the process of canceling subscriptions mid-term, generating invoices, and issuing credit memos for different bill-to contacts and payment terms.
In this use case, subscriptions are created with different bill-to contacts and different payment terms. After being invoiced, the subscriptions are canceled in the middle of the current term. Then, credit memos are generated for different bill-to contacts.
As listed in the following table, the four subscriptions can be categorized into two groups based on the bill-to contact and payment term. Subscriptions S001 and S002 are one group. For this group, the bill-to contact is Steve America and the payment term is Net 30. Subscriptions S003 and S004 are the other group. For this group, the bill-to contact is Tom Lee and the payment term is Net 45.
A bill run is created with the targetDate field as 2022-01-01 and the autoPost field as true. Then, invoice INV001 is generated for S001 and S002, with the bill-to contact as Steve America and the payment term as Net 30. Invoice INV002 is generated for S003 and S004, with the bill-to contact as Tom Lee and the payment term as Net 45.
| Subscription | Generated Invoice | ||||||
|---|---|---|---|---|---|---|---|
| Subscription Number | Bill To Contact | Subscription Term | Effective Start Date | Payment Term | Invoice Number | Bill To Contact | Payment Term |
| S001 | Steve America | 12 Month | 2022-01-01 | Net 30 | INV001 | Steve America | Net 30 |
| S002 | Steve America | 12 Month | 2022-01-01 | Net 30 | |||
| S003 | Tom Lee | 12 Month | 2022-01-01 | Net 45 | INV002 | Tom Lee | Net 45 |
| S004 | Tom Lee | 12 Month | 2022-01-01 | Net 45 | |||
In the middle of the current term, all subscriptions are canceled with the effective date as 2022-09-01. Another bill run is created with the targetDate field as 2022-09-01 and the autoPost field as true. As a result, credit memo CM-01 is generated for subscriptions S001 and S002 with the bill-to contact as Steve America. Credit memo CM-02 is generated for subscriptions S003 and S004 with the bill-to contact as Tom Lee.