Hold Credit checkbox to hold credits untill next Billing cycle

Hi Team,

I am looking for the details of the functionality of the Hold credit checkbox. Service Contracts User Guide says

You can place a hold on credit memos until the next billing cycle. This setting does not

hold invoices.

By default the Hold Credits check box is cleared, so the credit memo immediately picks

  up the billing amount

Please share the logic which is used to determine the date on which the credit memo will be generated for a subline terminated on a contract having the "Hold Credit" checkbox checked. I am looking for the field name which i should consider like either it "Bill to" or the "Interface Date" field. Also if the Termination date would be considered for the purpose to calculate the next billing cycle or the transaction date.