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Mass Termination Processing

Modules > Advanced Recurring Contract Billing > Periodic tasks > Mass termination processing

Use this page to terminate currently-displayed billing schedule lines using a specified termination date.

If you are using Advanced Revenue & Expense Deferrals, billing schedules that have the Termination date set to Adj. schedule on theBilling Schedules page are eligible for a refund.

Billing schedules that use the multiple element allocation functionality in Multiple Element Revenue Allocation do not appear on this form. However, you can still terminate an individual billing schedules using the termination functionality.

Note icon. Note: Billing schedule lines that are currently included in an invoice creator batch are not available for this process.

Tip: If you want to terminate only one billing schedule or a single line within a billing schedule, use the Terminate Schedule Lines page.

Termination Example

Consider a billing schedule with the following settings:

Billing start date: January 01, 2015
Billing end date: December 31, 2015
Billing frequency: Annual

The customer has already been invoiced for the whole year (January 01, 2015 - December 31, 2015), but decides to cancel in March. The amount that the customer paid is 1200. 00.

To terminate the contract on March 15, 2015, you must do the following:

On the Mass Termination Processing page, select the billing schedule you want to terminate.
In Termination date, select March 15, 2015, and choose Select.

The page shows the Credit amount.

Calculation for credit amount: Equal per period

When Prorate daily is set to No, by default, the credit amount is calculated based on equal per period.

When the contract is terminated on March 15, the period that contains the first 15 days of March is considered a full period. Any partial month is considered a whole month. The credit amount is calculated as follows:

Monthly amount: 1200.00/12 = 100.00
Termination date: March 15 (March 15 is considered a full month)
Months to be billed: (Termination date Month - Start date month) = 3 - 1 + 1 = 3
Amount to be billed: Months to be billed * Monthly amount = 3 * 100.00 = 300.00
Credit amount: 3 * 300.00 = 900.00

Calculation for credit amount: Prorate daily

When Prorate daily is set to Yes, the daily rate is used to calculate the refund.

Daily rate: 1200.00/365 = 3.28
Number of days to be billed: January 01 to March 14 = 31 + 28 + 14 = 73 days
Amount to be billed: Days * Daily rate = 73 * 3.28 = 239.44
Credit amount: Original amount - Amount to be billed = 1200.00 - 239.44 = 960.56

If needed you can specify a different credit amount, but the amount cannot exceed 1200. 00.

Physical Inventory and Credit Adjustments

Terminating the billing schedule line for an inventory item can increase the physical quantity of the item, depending on whether the option to reduce inventory is turned on when the credit note is posted. Review the following example.

Inventory item 1000 has physical inventory of 298.00.

From the Invoice Creator, a credit not is created with a quantity of -5.

If the invoice is created with an option to manually post the invoice, on the Posting Invoice dialog, you can set Reduce quantityto Yes.

If the invoice is created with the Posting option is set to Post invoice automatically, the Accounts Receivables Parameters page must have the following option set to Yes:
- On the Updates tab in the Invoice FastTab, the Automatic reduction invoice is set to Yes. This setting is part of standard Microsoft Dynamics 365 for Finance and Operations.

After the inventory is posted, the physical inventory is increased by the quantity of the credit note. In this example, the credit note for item 1000 is for a quantity of -5. The updated physical inventory becomes 303.00.

Terminate Schedules

To terminate several billing schedules, follow these steps:

Select a Termination date, the Reason code and Termination type.
If needed specify Termination notes.
Select the default Invoice transaction type and the Posting option.
In the Credit options, select the options for issuing a credit:
1. Set Issue credit to Yes and select the Credit Option.
2. If you want to prorate the amount of the final invoice, set Prorate daily to Yes.
3. If the billing schedule is for a deferral item, select the Deferral adjustment method.
4. Select the Invoice date.
  Note: An issue occurs when a credit is to be issued for a billing schedule that has a discount amount or if the item has any consumption amount. For more information on the issue and the workaround, see Known Issues and Limitations.
Select Select to add filter criteria so that the records you want appear on the page.
From the list of records, select any lines that you want to terminate, and select Remove.
Select OK.

When issuing a credit, the credit note is updated with the invoice account from the billing schedule. Also, when Invoice address is Invoice account for the customer record, the bill-to address and payment term information is from the invoice account.

Note icon. Note: You cannot remove the termination from several billing schedules in a single action. You must remove the termination from each individual billing schedule with the Remove Termination action.

Terminate without Credit

To terminate billing schedules without a credit, follow these steps:

Select the Termination date, the Reason code, and if needed specify any Termination notes.
Set Issue credit to No.
The Credit option is set to No credit and Prorate daily is set to No. These options are automatically set and cannot be edited.
Choose Select to add filter criteria so that the records you want appear on the page.
From the list of records, select any lines that you want to terminate, and select Remove.
Select OK.

When the termination is processed, all billing detail lines after the termination date (including the line that contains the termination date) are removed. Invoices for these lines cannot be created. If the termination is removed, all terminated lines are added back to the billing details, and become available for invoicing.

Fields

This page contains the following fields:

Field	Description
Termination
Termination date	Select the date on which to terminate the selected lines. This date must be earlier than the end date of the schedule line.
Reason code	Select the reason for terminating the billing schedule.
Reason description	Displays the reason for the termination.
Termination notes	Specify any notes for terminating the billing schedules.
Transaction
Invoice transaction type	Select the invoice transaction type you want to process.
Posting option	Select the action for posting the invoice after the sales order is created: Create sales order: Creates the sales order only. At a later time, you can manually create and post the sales order invoice. When a project ID exists for any of the lines, the project ID is attached to the sales order. Show posting invoice form or create invoice proposal: Creates the sales order, and opens the posting invoice page. You can then choose to manually post the invoice or save it and manually post it at a later time. When a project ID exists for any of the lines, a project invoice proposal is created for the sales order. Note: When this option is selected, the invoice must be manually processed . As a result, you cannot process the sales order within a batch job. Create free text invoice: Creates a free text invoice. Available when Invoice transaction type is Free text invoice. Post invoice automatically: Creates the sales order, and automatically posts the sales order invoice. When a project ID exists for any of the lines, a project invoice proposal is created and then posted.
Credit Options
Issue credit	Specifies whether a return is created and the deferral schedule is adjusted: Yes: When a schedule line is terminated, a return is created and the deferral schedule is adjusted. No: When a schedule line is terminated, no return is created, and the deferral schedule remains as is. When no credit is issued, the Credit option is automatically set to No credit and cannot be edited.
Credit option	When termination a billing schedule line, select how the credit is applied: Credit adjustment: Creates a credit adjustment for a billing schedule when a line is terminated. The credit adjustment appears in a future billing period for the billing schedule and automatically adjusts the invoice amount for the next billing period until the credit is finished being applied to the billing schedule. Issue credit: Creates a credit note when a billing schedule or billing schedule line is terminated. No credit: No credit adjustment or note is created upon termination of a billing schedule or billing schedule line. Available only when terminating a billing schedule using the No adjustment option. Available when Issue credit is Yes. When this page is opened from Terminate Schedule Lines, the this value is automatically updated based on the corresponding line being terminated. When opened from the menu path, the default value is from the Advanced Recurring Contract Billing Parameters page.
Prorate daily	Specify whether the prorate daily rate is used to calculate the refund. Yes: Uses the prorated daily rate to calculate the refund. No: Uses the default calculation method to calculate the refund. When this page is opened from Terminate Schedule Lines, the this value is automatically updated based on the corresponding line being terminated. When opened from the menu path, the default value is from the Advanced Recurring Contract Billing Parameters page. For more information, review the Termination Example.
Deferral adjustment method	Select how the credit adjustments are applied to the deferral schedule: Unrecognized periods: The credit adjustment is applied to only the unrecognized periods in the deferral schedule. Entire schedule: The credit adjustment is applied to the entire deferral schedule.
Invoice date	Select the invoice date. This date is used for creating returns. This field is available only when Issue credit is set to Yes.
Consolidate by customer	Select whether sales documents are consolidated by customer: Yes: Consolidates invoices by customer ID, document ID, customer reference, project ID, and currency ID when an invoice is created. No: Does not consolidate invoices by customer. The default setting is set on the Multiple Element Revenue Allocation Parameters page.
Line Grid
All data in the lines is read-only.
Billing schedule number	Displays the billing schedule number.
Description	Displays a description of the billing schedule.
Customer account	Displays the customer account ID or number.
Customer name	Displays the customer name.
End user account	Displays the end user account ID or number.
End user name	Displays the end user name.
Item number	Displays the item number for the line.
Serial number	Displays the serial number for the item.
Product name	Displays the product name.
Quantity	Displays the quantity of the item. For a credit adjustment, the quantity is from the Quantity entered on the View Billing Detail of the line that is being terminated.
Unit price	Displays the unit price for the item.
Billing start date	Displays the billing start date.
Billing end date	Displays the billing end date.
Billing frequency	Displays the billing frequency.
Credit amount	Displays the credit amount. This value is automatically calculated when the termination option for the selected schedule is Adjust Schedule and the termination date is within the already invoiced period. If needed, you can change the amount. This value must be a positive number and must be less than or equal to the original amount.

Buttons

This page contains the following buttons:

Button	Description
Select	Opens the query dialog where you add more filters to retrieve only the records that you want to process.
Remove (Line Grid)	Removes the selected rows.
OK	Terminates all records in the line grid or processes the records in the queue in the batch. This button is not available when any of the lines in the line grid are selected. After the records are terminated, the following occurs: Updates the termination date on the billing schedule line Updates the schedule line status to Disabled Shows Refund as the reason for the termination If all lines are terminated, the following header fields are updated: Termination date and Status (updated to Disabled)
Cancel	Cancels the process, and closes the page.
Batch	Opens the page for batch processing. Batch processing is a standard Microsoft Dynamics 365 for Finance and Operations feature. For more information, see Batch processing overview.

One Time Frequency Termination with Credit

Allow to terminate One-time billing lines by keeping the Status of the billed lines to Active and creating the applicable credit adjustment. Following below are the scenarios which will result in credit adjustment based on the different Credit option and Prorate daily.

Credit option= Issue credit + Prorate daily= Yes
- Credit amount = $ based on the termination date
Credit option= Issue credit + Prorate daily= No
- Credit amount = $0
Credit option= Credit adjustment + Prorate daily= No
- Negative line amount created in the billing detail
Credit option= Credit adjustment + Prorate daily= No
- No Negative line amount created in the billing detail

Example based on Prorate method = Daily for different scenarios:

No.	Billing start date(MM/DD/YY)	Billing end date (MM/DD/YY)	One time amount	Termination date(MM/DD/YY)	Credit note amount with Prorate = Yes	Credit note amount with Prorate = No
1	01/01/2022	01/01/2022	$1000	01/01/2022	$0	$0
2	01/01/2022	12/31/2022	$1000	06/30/2022	$0	$504.11
3	02/01/2022	01/01/2022	$1000	01/30/2022	$1000	$1000
4	01/01/2022	01/20/2022	$1000	01/30/2022	$0	$0
5	01/01/2022	01/20/2022	$1000	01/05/2022	$0	$750

Mass Termination Data entities

For both the Header and Line data entities mentioned below when One time frequency item is used and based on the Credit option and Prorate daily option selected credit amount is calculated.

Import Billing Schedules

Deferral Schedules

One-time billing deferral schedules to be adjusted if the contract is terminated. Similar to all other frequency deferral adjustments.

Credit Note for Deferrals: Examples > Integration with ARCB.