Credit memo for cancellation of Maintenance contracts

[Former Member]

Hi Experts,

Need to check if someone has come across the below requirement,

Requirement: We have maintenance contracts with/without billing plans. We will bill the customer upfront. If customer cancels the contract going forward we will give them a portion of amount back as credit based on the period in which they cancel.

E.g. : Suppose contract date has a validity period 01st Jan 2015 to 31st Dec 2015.

if the customer cancels the contract:

1. 90 days before the contract end date(31st Dec 2015) - Full  refund

2. 60 days before the contract end date(31st Dec 2015) - 50% refund

3. 30 days before the contract end date(31st Dec 2015) - 20% refund

4. Less than 30 from the contract end date(31st Dec 2015) - "NO" refund

I was thinking of using cancellation procedure function but i do not see the functionality of providing partial credit w.r.t to the cancellation procedure.

Let me know if we have standard functionality to handle this scenario.

Thanks,

Abhijit G. Borkar

[former_member186385]

Hi,

There is no standard functionality to accomplish this.

As a workaround you have to do few configurations

1.  Since it is a credit memo, insert a manual price with accepted amount based on the cancellation date for example 50% or 20%

2. To create partial Credit memo's from the Credit memo Request , modify the copy control at the item category with Positive and negative field as Blank

3. Create a User status profile with CLSD ( for example) and assign to the Credit memo request. In the user status profile against your status maintain business transaction As Forbid Invoice creation . By doing this system will not allow you to create Credit memo if the user status set to CLSD. You can set the CLSD user status once you confirm that you don't want to create Credit Memo's anymore

The above process has to be handled manually and cannot be controlled automatically.

thanks

santosh