Terminating converted contract does not create credit memo

Hi

  For converting service contracts that are partially billed it is common practice to mark old billing schedule lines as 'Billed'.

  That way we ensure that old billing lines are not billed from oracle again.

   If conversion happens in the middle of a billing period then it is possible to have it terminated post-conversion.

   But oracle will not create any credit memo. Assume following scenario where conversion happens on 15th August.

   If I terminate contract line on 1st September, oracle does not create credit memo.

  Any idea how this can be handled?

Period

Billing Date

Amount

Rev Rec

Billed

Inv #