Cancel Subscriptions

with nue, users sales reps or customer success managers can cancel subscriptions for customers if they no longer want to renew after the subscriptions are canceled, their statuses will be changed to cancelled if subscriptions are canceled before the subscription term ends, there will be a negative cmrr and arr impact as results of the early cancellations this article outlines 3 different cancellation options available in nue you can follow the steps below to cancel one or more subscriptions for a customer login to salesforce, and navigate to an account click 'manage customer lifecycle" to navigate to the lifecycle manager click 'cancel' action in the cancel popup, you can choose from 3 different cancellation options today the cancellation would take effect immediately after the (change) order is activated once selected, the date picker will be populated with today’s date if this is selected, the new subscription end date will be set to today 1 after the current subscription term ends the cancellation would take effect 1 day after the current subscription’s subscription end date this is the default option on a specific date user can specify any day that is greater or equal to today the cancellation would take effect on the date specified in the date picker if system setting allow back dated change orders is enabled, the date must be within the range between the current subscription's start and end date otherwise, the date must be greater or equal to today and less or equal to the subscription end date + 1 after specifiying the cancellation date, click 'confirm' to add the cancellation request into the change cart if you have more than one subscriptions to cancel for the same customer, you can click the standard filter 'active subsriptions' to filter for all active subscriptions, and repeat the steps above when a subscription having children assets, subscriptions, and entitlements is canceled, all its children assets, subscriptions, and entitlements will be canceled so you don't need to repeat the cancel action for all children subscriptions, assets and entitlements checkout the change requests in the change cart into a new quote, a new order, or an existing quote, an existing order if you are checking out the change requests into a new quote, you must associate the quote with an existing opportunity, or a new opportunity in the create quote step in the line editor, you can expand the summary line to see the change lines containing the cancellation changes for example, i chose to cancel on a specific day 07/01/2023 i can see a cancellation line showing that 100 units are reduced for the time period between 07/01/2023 and 12/31/2023 you can add 'cancellation date' fields into the line editor grid, as shown below you can see that the cancellation date of the summary line is displayed as the cancellation date specified in the change cart in this case, it is shown as 07/01/2023 you can click into the cancellation date field to change the cancellation date the prices will be recalculated according to the updated cancellation date you can also click 'edit' icon in the change line to change the cancellation date the prices will be recalculated accordingly click save and exit, and activate the cancellation order (or mark the opportunity as closed) this will version the subscription, and mark the subscription as canceled the subscription end date will be changed to the cancellation date 1 in the lifecycle manager, you can see the updated status, cancellation date, subscription end date, and the subscription revenue stream clearly shows the subscription is canceled cancel subscription with future changes when a subscription term is reduced, or a subscription is canceled before the subscription end date, this subscription may have multiple changes (leading to different versions) before the cancellation date for example, on 01/01/2023, i created a subscription with a 12 month term and 100 users later i renewed the subscription for 12 months, and added 50 users later 1 i reduced the term by 6 months, and removed 20 users later i want to cancel the subscription effective 01/01/2024 as a result, i am expecting that after the cancelation, the subscription has term starting 01/01/2023, and ending 12/31/2023, with 80 users total let's see how nue handles this complex use case before the user cancels the subscription, the subscription is in version 4 with the following change lines associated number linetype start date end date subscription term quantity total price delta cmrr sub 0001 (v4) subscription (latest version) 01/01/2023 06/30/2024 18 80 1500 change line\ op 0001 new 01/01/2023 12/31/2023 12 100 1200 100 change line\ op 0002 change renew 01/01/2024 12/31/2024 12 100 1200 100 change line\ op 0003 change reduce quantity 10/01/2023 12/31/2024 15 (20) (300) (20) change line\ op 0004 change reduce term 07/01/2024 12/31/2024 6 (100) (600) (100) when the user cancels the subscription on 01/01/2024, the subscription will be versioned to version 5, with the following change lines associated number linetype start date end date subscription term quantity total price delta cmrr sub 0001 (version 4) subscription (latest version) 01/01/2023 12/31/2023 12 80 1020 change line op 0005 change cancel ramp 1 01/01/2024 06/30/2024 6 (100) (600) (100) change line op 0006 change cancel ramp 2 01/01/2024 06/30/2024 6 20 120 120 it looks complicated, but nue essentially reverses the change line after the cancellation date, one by one, to produce the final results in the summary line all these changes lines are also visible in the line editor you can simply expand to see all the change details arr impact after subscriptions are canceled within the three cancellation options we provide, each option may have a different arr impact for the subscription term after the cancellation is processed "after the current subscription term ends" by choosing this option, there will be no impact on the arr during the subscription term after you cancel "on a specific date" or "today" if you select either of these options, the subscription will be canceled on the chosen date or the current date, respectively for instance, if your subscription ends before today and has a monthly recurring revenue (mrr) of $1k, canceling the subscription today or any date after the subscription end date will not impact the arr for the subscription term in the case of a subscription ending on 08/06, if you cancel it on 07/06, there will be a negative delta of $1k in mrr (and a negative delta of $12k in arr) between 07/06 and 08/06, but this impact is only for this month to see the actual arr impact, after you checkout the subscription cancellation requests into a quote or order, you can add the following fields to the line editor cancellation date delta arr (change in arr) delta cmrr (change in monthly recurring revenue) in the example below, where the subscription is canceled before its intended end date, this action will generate a change line that reflects a negative change in arr between the cancellation date and the original subscription end date cancel multiple subscriptions scenario customer has a series of subscriptions created separately in the past they would like to cancel them together on a specific date you can follow the steps below in the lifecycle manager, navigate to subscriptions click list view next to the grid view in the list view, all subscriptions of this customer are displayed select one or more subscriptions in the list, and click 'cancel' in the batch actions cancel multiple subscriptions jpg in the cancel popup window, choose the below cancellation options and click 'confirm' today the cancellation would take effect immediately after the (change) order is activated once selected, the new end date of each selected subscription will be set to today 1 after each subscription term ends the cancellation would take effect 1 day after each of the selected subscriptions’ end date this is the default option on a specific date users can specify any day that is greater or equal to today the cancellation would take effect on the date specified in the date picker if system setting allow back dated change orders is enabled, the date must be greater or equal to the earliest subscription's start date otherwise, it must be greater or equal to today this adds the cancel requests for all selected subscriptions into the change cart checkout the change cart into a quote or an order, as usual