SSP Question!
When our sales teams does a rip/rep...
# armj
Judy Caldwell
03/09/2023, 2:34 PMSSP Question!
When our sales teams does a rip/replace of entitlements, they often use a negative quantity. When it flows into NS, it's allocating a huge negative amounts to these lines. Has anyone solved for this to make sure it doesn't happen?
(In some instance the start/end dates all match so the impact to rev rec nets to $0. some instances it does not and we take a big negative hit to revenue)
k
Karina
03/09/2023, 3:33 PMso they do rip, what about replace, when that happens? also, is this coming from SFDC CPQ?
j
Judy Caldwell
03/14/2023, 6:28 PM@Karina - Sorry for the delay in response. Yes, all the data is coming from SFDC CPQ.
See the example attached. We use the negative qty amount to calculate the Credit the customer received for funds already paid towards the old product.
In the scenario below, they're early renewing the contract with an upgraded subscription. So they negative amount in CPQ is calculated the credit that they've already paid for those 3 months.
Judy Caldwell
03/14/2023, 6:29 PMbut the problem is that SSP is doing a FMV allocation and giving us a really large negative value for those 3 months of rev rec.
k
Karina
03/14/2023, 6:37 PMI see, so there should be a bit of adjustment of business process. In other words, say, you give a credit to customer; this credit should come through as Return Authorization (or perhaps as a Credit Memo, up to you), then you merge your original rev arr with the return authorization, and that’s true reflection revenue wise what is happening in business
j
Judy Caldwell
03/14/2023, 6:42 PMWe won't be able to change the process upstream. by using the negative qty it means that no one has to touch the deal from close/won through deprovisioning, provisioning, invoicing and creating a RAR.
Judy Caldwell
03/14/2023, 6:45 PMIs there a formula change we can do for the set up of SSP that would exclude any allocations for negative amounts?
k
Karina
03/14/2023, 6:46 PMnope, unfortunately, formula has no place here 😞
Karina
03/14/2023, 6:46 PMI am not proposing to do anything in SFDC, this is all on NS side
Karina
03/14/2023, 6:47 PMwhy won’t you merge? what you say is “we sold X for $100, then we gave X a credit in the last two months for $30”
Karina
03/14/2023, 6:48 PMthey way to express it in ARM is to create a SO on the sale date and then Return Authorization on credit date and merge on the credit date
Karina
03/14/2023, 6:48 PMthrough remainer of the contract
j
Judy Caldwell
03/14/2023, 6:49 PMwe process 55k+ transaction a month. i can't ask the billing team to start doing a portion of it manually that has been automated. it's not a feasible "ask"
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Karina
03/14/2023, 6:49 PMso your net in the end is $70, isn’t that what you are doing?
j
Judy Caldwell
03/14/2023, 7:00 PMwithout changing anything in our current process...
are you saying there is no way to correct this issue?
k
Karina
03/14/2023, 7:01 PMthis is how to change the process without changing anything
Karina
03/14/2023, 7:02 PMthe process change is on rev side only, you just accomodate/“interpret” what your sales are doing
Karina
03/14/2023, 7:02 PMoh, no, this does not have to be a manual process
Karina
03/14/2023, 7:07 PMa little script combining associated contracts will do the trick
j
Judy Caldwell
03/14/2023, 8:02 PMSo we would be linking the RAR from the old contract to the new contract?
k
Karina
03/14/2023, 8:28 PMno, that would not be it. you will be linking Return Authorization with the original source document where contract is. essentially you are modifying your original contract by providing this credit, so merging service the purpose of reflecting this contract modification
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