Close Subscriptions with Milestone Billing

Keep these points in mind when closing subscriptions that use milestone billing:

• As a subscription is closed, the application doesn't automatically calculate credit, unless the close credit method is Full. So, if you need to give credit, you have to prorate manually by either making manual adjustments to the bill lines that aren't yet interfaced or by creating a manual credit memo, if bill lines are already interfaced to Accounts Receivable
• Any bill lines for incomplete milestones are interfaced to Accounts Receivable even after the subscription in closed. In genuine business scenarios, the parties to the contract may decide to honour a part of the unbilled milestones, thereby entering a completion date for them and manually changing the line amount on the bill line.

To close a subscription product with a milestone-based charge:

1. Decide on the close date of the subscription product.
2. Decide what happens to the bill lines that pertain to milestones that are after the termination date, or within the termination date and not yet billed.
3. Make the bill line adjustments for the unbilled milestones. Make them 0. Or, if a partial bill needs to be generated, then manually change the bill line amount. This is "manual proration" of a bill line.
4. Close the subscription.

If you do bill the billing lines after closing, then the invoice results in an invoice dispute as part of normal business practices (this is not in scope of Subscription Management). In this case, the billed amount can differ from the amount recognized in Revenue Management.