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Former Member
Jan 22, 2015 at 04:29 PM

Credit memo for cancellation of Maintenance contracts

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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