Modify term length or subscription term start date in renewal quote
Starting with Quotes version 10.34, after creating a subscription quote, you can modify the current subscription version's term within the Renew Quote Flow by modifying the Renewal Term Start Date.
You can use the toggle, Flexible Renewable Start Date, to modify the current subscription version's term length/term period type (with a T&C Update Order Action). With the same toggle, you can also modify the renewal term start date (QSD) directly, and Quote Studio will auto-calculate the Current Term Length and Period Type to achieve the entered renewal term start date (QSD). You can define access to this feature for specific profiles via the Flexible Renewable feature in the Feature Access Config.
Enable Flexible Renewal
To modify the initial terms, you must enable the Flexible Renewal setting.
To enable the setting, perform the following steps:
- Navigate to Quote Studio Settings > Feature Access Config in your Salesforce org.
- Select Add.
- From the Feature Name dropdown, select Flexible Renewal.
- In the Profiles field, select the user profile.
- Enable the Renew Quote field.
- Click Save.
Procedure
To modify the term length or subscription term start date, perform the following steps:
- Add the Flexible Renewal Start Date field to any field set for Quote Studio, such as the CPQX_Subscription_Terms_And_Conditions field set. It is recommended that you add other fields like Renewal Subscription Term Start Date and Renewal Subscription Term End Date as follows.
- Create a renewal quote in CPQ X Quote Studio.
- Enable the Flexible Renewal Start Date toggle. Note that this toggle is visible only if you add the feature access (Flexible Renewable) to the Feature Access Config for the current user’s profile. The Current Term, Initial Term Period Type, Renewal Subscription Term Start Date, and Start Date (QSD) fields become editable.
- Modify the initial term length, subscription term start date, or start date based on your need. The renewal start date is updated based on the changes made. Changing the Renewal Subscription Term Start Date updates the Start Date (QSD) to the same date and vice versa. Hence, these two fields will always have the same value.
If you modify the start date or the subscription term start date and add products other than the original one, a popup displays options to define how to treat product actions when moving the term start date. For more information, see Modal Pop-up when Quote Start Date is Moved.
After you modify the initial terms and disable the Flexible Renewal Start Date toggle, a confirmation popup displays, informing you that the system will discard your changes.
If you extend or shrink the initial term in an early renewal quote, the quote metrics are affected by the extended or shrunk period of the initial term.
The following are two examples to illustrate the calculation of subscription total delta and charge subtotal delta metrics:
The current subscription version's term: Term 1 - 2024/01/01 ~ 2025/01/01. This subscription has one rate plan X with one charge A ($100 per month) and is fully invoiced for $1200 ($100 * 12 months).
Example 1: In October 2024, you want to renew the term earlier by extending the initial term by two months. As a result, the renewal subscription will start from 2025/03/01.
Since the period between 2025/01/01 and 2025/03/01 has not been invoiced, the subscription total delta will be $1400 = $200 (extended period) + $1200 (renewal term); charge A’s subtotal delta will be $1200 (renewal term) because it includes the increase from the renewal subscription start date only.
When generating the Quote document referring to the Zuora Quotes objects, if you want to include the extended period in the renewal quote total amount, you can sum the Quote Charge Summary object’s delta_TCB field.
Example 2: In October 2024, you want to renew the term earlier by shrinking the initial term by two months. As a result, the renewal subscription starts from 2024/11/01.
Since the period between 2024/11/01 and 2025/01/01 has been invoiced, the subscription total delta will be $1000 = -$200 (proration credit of the shrunk period) + $1200 (renewal term); charge A’s subtotal delta will be $1000 = $1200 (renewal term) + -$200 (decrease due to the term reduction) because the renewal term overlaps with the shrunk period.
Changing the subscription start date, initial term length, or period type may impact billing.
The following example shows the impact on billing for an early renewal:
The current subscription version's term: Term 1 - 2024/01/01 ~ 2025/01/01, 2024, is fully invoiced for $1200 (100*12).
There is an early renewal in October, with the renewal term starting from 2024/12/01. The renewal term is six months. Hence, the current term has been changed from 12 months to 11 months.
- The contractual amount of the original SO line for the current term will be updated from $1200 to $1100
- The contractual amount of the new SO line for the renewal term will be $600
- The early renewal quote’s total amount is $500
The next bill run will have the following three invoice items:
- 2024/12/01 ~ 2024/12/31 -$100 (proration credits for the last month in the current term)
- 2024/12/01 ~ 2024/12/31 $100 (the first month of the renewal term)
- 2025/01/01 ~ 2025/05/31 $500 (from 2nd to 6th months of the renewal term)