A service re-rate is a customer facing MRR / price change (as opposed to element re-rate that changes element cost to provider). A service re-rate applies to base MRR only not the add-on MRR.
| A re-rate only adjusts the monthly recurring revenue (customer price) only (some organizations allow such an unilateral re-rate based on their terms of service) — for price, term and renewal adjustment (such as customer renewal) use Re-Term/Term Extension. |
A service re-rate is usually more complicated than just editing service record and changing the MRR amount:
- It has an effective date (usually with the end of a billing cycle),
- The change has to be tracked and reflected in the billing,
- The change may require a service order / flow.
Nextian handles service re-rates by the Re-rate/Change MRR action. The following happens when an MRR is changed:
- Service MRR field is adjusted.
- All customer, term & renewal data is left intact.
- A service change record is created.
- The change is logged in the service timeline (Service Details → Timeline).
- The change is logged in the service Chatter.
| Important | MRR change can happen in any point in the service lifecycle regardless of its current fulfillment status. |
If the effective date is in the future, the operation is saved and scheduled for processing. It will be visible in the service timeline as a pending change (in yellow). The change will be processed automatically by the Apply Service And Element Changes job (Setup → Nextian Settings → Apply Service And Element Changes) when the effective date has been reached.
Please read more about applying changes to services here.
A re-rate can be initiated manually by a user or automatically from a work order.
User-initiated (‘manual’) re-rate
Re-rate/Change MRR is available as one of the management actions on service details:
To change the MRR on a service:
- Open service details.
- Click Re-rate/Change MRR.
- Review Effective Date when MRR change should be applied — current date is provided as the default.
- Enter New Base MRR.
- Provide an optional description (it will be saved in the description field of the change).
- Click Save.
If the provided Effective Date is in the future, a change record will be created with and processed on that date, otherwise the change will be applied immediately.
Work order-initiated
In that case work order templates control the process flow by defining appropriate tasks and their sequence and Re-rate step may be part of the flow.
