Understanding Change Requests Made for Price Amendments

When you amend prices on a contract, Billing Central creates a change request with the new price information. The changes made to contract line items depend on:

• Whether they are one-off or recurring lines.
• Where they fall in relation to the Effective from Date.
• Whether they have been billed beyond the Effective from Date.

The example below illustrates some scenarios. For a complete list, see Amend Prices Immediately. If any of the changes do not suit your business practices, edit the contract line items before applying the change request.

You must apply the change request to the active contract for the price amendments to take effect. The new prices are charged when you start billing the contract after the Effective from Date.

Example

A contract comprises three contract line items:

Line	Billing Type	Start Date	End Date	Unit Price	Billed To
1	One-off	March 1, 2022	March 31, 2022	1500.00	March 31, 2022
2	Recurring Fixed	January 1, 2022	June 30, 2022	500.00	March 31, 2022
3	Recurring Fixed	May 1, 2022	June 30, 2022	200.00	-

By amending prices on either the whole contract or individual contract line items, you increase all the unit prices by 10% effective from February 1 2022. The resulting change request has the following lines:

Change Request Created if Price Changes Are Applied Immediately

Line	Billing Type	Start Date	End Date	Unit Price	Canceled	Explanation
1	One-off	March 1, 2022	March 31, 2022	1500.00	Y	This one-off line is canceled because it started after the Effective from Date and had been billed. It is replaced by Line 4 which uses the new unit price. When you apply the change request, a credit note is created for the amount that had already been billed.
2	Recurring Fixed	January 1, 2022	January 31, 2022	500.00		Line 2 originally spanned the Effective from Date. It now ends the day before the Effective from Date, and Line 5 is added for the remaining duration using the new price.
3	Recurring Fixed	May 1, 2022	June 30, 2022	220.00		Line 3 started after the Effective from Date but had not been billed so it is simply updated to use the new unit price.
4	One-off	March 1, 2022	March 31, 2022	1650.00		This line is cloned from Line 1 and uses the new unit price.
5	Recurring Fixed	February 1, 2022	June 30, 2022	550.00		This line is cloned from Line 2. Its Start Date is set to the Effective from Date (February 1, 2022) and it uses the new unit price. When you apply the change request, a credit note is created for the amount that was already billed from the Effective from Date to the Billed To date.

Change Request Created if Price Changes Are Applied When Next Billed

Line	Billing Type	Start Date	End Date	Unit Price	Explanation
1	One-off	March 1, 2022	March 31, 2022	1500.00	This line does not change because it was already fully billed before the price amendment occurred.
2	Recurring Fixed	January 1, 2022	March 31, 2022	500.00	Line 2 now ends on its Billed To date, and Line 4 is added for the remaining duration using the new price.
3	Recurring Fixed	May 1, 2022	June 30, 2022	220.00	Line 3 started after the Effective from Date and had not been billed so it is simply updated to use the new unit price.
4	Recurring Fixed	April 1, 2022	June 30, 2022	550.00	This line is cloned from Line 2. It's Start Date is set to the day after Line 2's Billed To date, and it uses the new unit price.