Override Close Credit Amount
When a subscription is terminated, you can use the Calculated Credit Amount field to view the credit amount issued to the customer and override that amount using the Override Credit Amount field.
The Calculate Credit Amount is a read-only field available at the level of subscription, product, and covered levels.
If you want to override this amount, here’s how the overridden credit amount for each credit memo bill line is calculated:
Overridden Credit Memo Bill line amount = Original Credit Line Amount X Overridden Credit Amount/Calculated Credit Amount
Let's consider a subscription product starting 1 Aug 2021 with a duration of 4 months and a $1000 monthly charge. Here's the billing summary for this subscription:
| Period | Charge | Bill-from Date | Bill-to Date | Amount | Interfaced |
|---|---|---|---|---|---|
| 1 | Monthly Fee | 1-Aug 21 | 31-Aug 21 | 1000 | Yes |
| 2 | Monthly Fee | 1-Sep 21 | 30-Sep 21 | 1000 | Yes |
| 3 | Monthly Fee | 1-Oct 21 | 31-Oct 21 | 1000 | Yes |
| 4 | Monthly Fee | 1-Nov 21 | 30-Nov 21 | 1000 | Yes |
If you close this product on 16-Oct 21 with Prorate with credit, the application will create credit memos against two billing lines. Here’s the billing summary:
| Period | Charge | Bill-from Date | Bill-to Date | Amount | Interfaced |
|---|---|---|---|---|---|
| 1 | Monthly Fee | 1-Aug 21 | 31-Aug 21 | 1000 | Yes |
| 2 | Monthly Fee | 1-Sep 21 | 30-Sep 21 | 1000 | Yes |
| 3 | Monthly Fee | 1-Oct 21 | 31-Oct 21 | 1000 | Yes |
| 3 | Monthly Fee | 16-Oct 21 | 31-Oct 21 | -516.13 | |
| 4 | Monthly Fee | 1-Nov 21 | 30-Nov 21 | 1000 | Yes |
| 4 | Monthly Fee | 1-Nov 21 | 30-Nov 21 | -1000 |
The credit for the partial period between 16-Oct-21 – 31-Oct-21 will be $516.13, and for 1-Nov-21 to 30-Nov-21 will be $1000 The total credit issues would be $1516.13
If you choose to override credit in this case and enter 1000 as the override credit amount then the billing summary would look as follows:
| Period | Charge | Bill-from Date | Bill-to Date | Amount | Interfaced | Comments |
|---|---|---|---|---|---|---|
| 1 | Monthly Fee | 1-Aug 21 | 31-Aug 21 | 1000 | Yes | |
| 2 | Monthly Fee | 1-Sep 21 | 30-Sep 21 | 1000 | Yes | |
| 3 | Monthly Fee | 1-Oct 21 | 31-Oct 21 | 1000 | Yes | |
| 3 | Monthly Fee | 16-Oct 21 | 31-Oct 21 | -340.43 | 1000/1516.13*516.13 | |
| 4 | Monthly Fee | 1-Nov 21 | 30-Nov 21 | 1000 | Yes | |
| 4 | Monthly Fee | 1-Nov 21 | 30-Nov 21 | -659.57 | Yes | 1000/1516.13*1000 |
In this example, the overridden credit amount will proportionally change the amount for credit memo bill lines.
Things to Remember
- The value in the Override Credit Amount field can’t be negative.
- You can't override the credit amount with another amount if the calculated credit amount is 0.
- You can override the credit amount for those subscriptions that either the Prorate with Credit or Full Credit credit methods.
- If the Override Credit Amount values is 0, no credit will be issued.