Re-terming Services / Customer Renewals

A re-term operation is an adjustment of term and renewal type on a service along with a re-rate (i.e., adjusting monthly recurring revenue/customer price). This operation is superset of re-rate; however, the latter can adjust revenue on a service in any status, while a re-term only works on active services (i.e., with fulfillment status equal to In Service). A re-term is usually a part of a customer renewal process.

A re-term is usually more complicated than just editing a service record and changing field values:

• Is typically part of a larger customer renewal (or other) process,
• It has an effective date (usually with the end of a billing cycle),
• The change has to be tracked and reflected in the billing.

Nextian handles service re-term by the Re-term/Term Extension action. The action works as follows:

1. Service Start Date is not changed.
2. Monthly Recurring Revenue is set to the new value (both old and new values are saved in the change record).
3. Term is set to the new term value.
4. Renewal Type is set to the new renewal type.
5. Current Term Start Date is set to the effective date of the change.
6. Current Term End Date is calculated based on Current Term Start Date and the new Term.
   
7. Current Term Type is set to Customer Renewal.
8. A service change record is created.
9. The change is logged in the service timeline (Service Details → Timeline).
10. The change is logged in the service Chatter.

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-term can be initiated manually by a user or automatically from a work order.

User-initiated (‘manual’) re-term

Re-term/Term Extension is available as one of the management actions on service details:

To re-term a service:

1. Open service details.
2. Click Re-term/Term Extension.
3. Review Effective Date a change should be applied — current date is provided as the default.
4. Enter New MRR, New Term and New Renewal Type.
5. Provide an optional description (it will be saved in the description field of the change).
6. 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-term step may be part of the flow.