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Remainder Discount Rules

Overview

You can configure a discount rule with a Monthly Interval and a Duration value set for Maximum Applicable Months, so that it will sum up to a particular amount over its application period. This is achieved by choosing as the Invoice Application value "Use proration and remainder factors". When applied on the plan instance level for a recurring monthly service, this option will prorate the discount applied on the initial invoice and apply the remaining proportion of the discount on the appropriate invoice.

Configuring a Remainder Discount Rule

See Create a Discount Rule for complete instructions for creating a Discount Rule.

20210914_rdr_conf.png

  1. Remainder Discount Rules can be configured with either a Discount Type of Fixed or Percentage.
  2. Under Duration, select the radio button next to Specify Interval (from first application), then choose Months from the dropdown menu.
    Note: Remainder Discount Rules are not compatible with other intervals.
  3. Choose "Use proration and remainder factors" from the Invoice Application drop-down menu. 

Sample Use Case for a Remainder Discount Rule 

In the middle of a billing period, on the 6th day of the month, a new plan is added to an account with:

  • a $50 per month Recurring charge for Service A;
  • an alternative bill day of 1, to ensure all the account's plans are billed on the 1st of the month;
  • a coupon that grants a Remainder Discount Rule with a 100% discount for the first two months of service; Because it is a Remainder Discount Rule, we expect that 2 months' of such a discount yields a total discount of $100:
    $50 per month × 2 months = $100;
    and
  • a directive producing the next account invoice on the anniversary date, with a prorated billing period plus the next advance billing period for a full month.

We see the following calculations for the first invoice:

Invoice 1
1-Jan
  Period Start Period End Days Used Days In Month Proration Discount Unit Rate Amount
Service A 6-Dec 31-Dec 26 31 0.838709   $50.00 $41.94
Discount Active         0.838709 100% $(41.94)
Service A 1-Jan 31-Jan 31 31 1   $50.00 $50.00
Discount Active         1 100% $(50.00)
Total               $0.00

The invoice bills for a prorated billing period, plus the next full billing period. The total discount provided so far is:

$41.94 + $50.00 = $91.94

Here are the subsequent invoices, showing one final application of the discount, and then the full invoice.

Invoice 2
1-Feb
  Period Start Period End Days Used Days In Month Proration Discount Unit Rate Amount
Service A 1-Feb 28-Feb 28 28 1   $50.00 $41.94
Discount Active         0.151290 100% $(8.06)
Total               $41.94
Invoice 3
1-March
  Period Start Period End Days Used Days In Month Proration Discount Unit Rate Amount
Service A 1-March 31-March 31 31 1   $50.00 $50.00
Discount Exhausted         0    
Total               $50.00

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