Proration and Daily-Weekly Billing
Note:
- As of Release 28, all types of proration (no proration, charge only, credit only, and full) with different Assignment Directives (immediate, anniversary, and future) are supported for Daily-Weekly Billing.
Also supported in Release 28: - invoice unbilled usage
- plan status (i.e. active for new plan and inactive for old plan)
- alternate proration start date (applicable only for master plan instance)
- coupon application.
Offset options (offset interval and offset months) are not yet supported. Support for these options is planned for a future release.
- As of Release 29:
- All of these features related to assigning a new daily or weekly plan are supported in the assign_acct_plan_m, update_acct_plan_multi_m, and update_acct_plan_m APIs: <override_bill_thru_date>, <alt_bill_day>, <alt_start_date>, <status_until_alt_start>, <retroactive_start_date>, and <bill_lag_days>.
- You can also create daily or weekly prorated invoices when adding a new account via the create_acct_complete_m API call.
- As of Release 30: When you call an API to assign a daily or weekly plan with an inactive or a pending activation status, you can now pass in <assignment_directive> values 1-10 to apply your chosen proration rule in the future, immediately, or on the anniversary date. The available proration rules are: charge only, full proration, or no proration.
- As of Release 31: When you add, update, replace, or cancel a daily or weekly plan, all <assignment_directives> and their corresponding proration rules are now supported.
Replace Plan Proration
Proration triggered by replacing plans with daily/weekly billing is calculated differently than that triggered by monthly billing (or variations of months such as quarterly or annual). Because there is no concept of Bill Day or Anniversary (the day and date of the billing change every interval), replace plan proration depends on whether your old plan and new plan have the same interval.
Example 1: Plans With the Same Billing Interval (Length and Type)
If the new plan and the old plan have the same interval (length and type), the proration behavior is to prorate to the Next Bill Date.
Consider a plan change in which both plans have a 2-week interval with FULL proration:
Replace Plan A (2 weeks interval) with Plan B (2 weeks interval).
Last bill date: 1/5/2020
Next bill date: 1/19/2020
Replacement date: 1/14/2020
Assignment directive: Immediate
| Proration Type | Plan A: Credit Amount (1/14–1/19) | Plan B: Charge new amount (1/14–1/19) | Prorated Total | Next Charge for Plan B (1/19) |
|---|---|---|---|---|
| None | None | None | $0 | $28 |
| Full proration | ($5) | $10 | $5 | $28 |
| Charge Only proration | None | $10 | $10 | $28 |
| Credit Only proration | ($5) | None | ($5) | $28 |
Example 2: Plans With Different Billing Intervals
If the new plan and the old plan have different interval, the proration behavior is to prorate the old plan and charge, in full, the new plan.
Consider a plan change in which Plan A has a 2-week billing interval plan is replaced with Plan B, which has 4-week billing interval:
last bill date 1/5, next bill date is 1/19. Replacement date on 1/14, on that day we prorate the old plan (credits: 1/14 to 1/19) and charge in full (4 weeks) of the new plan. And plan B next bill date is 2/4.
Replace Plan A (2 weeks interval) with Plan B (4 weeks interval).
Last bill date: 1/5/2020
Plan A Next bill date: 1/19/2020
Replacement date: 1/14/2020
Assignment direction: Immediate
| Proration Type | Plan A: Credit Amount (1/14–1/19) | Plan B: Full Charge (1/14–2/4) | Prorated Total | Next Charge for Plan B (2/4) |
|---|---|---|---|---|
| None | None | $28 | $0 | $28 |
| Full proration | ($5) | $28 | ($5) | $28 |
| Charge Only proration | None | $28 | $0 | $28 |
| Credit Only proration | ($5) | $28 | ($5) | $28 |
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