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Home > Aria Crescendo Documentation > Proration > Proration Effects with Plan Changes

Proration Effects with Plan Changes

This article applies to:Aria Crescendo

Overview

When a customer subscribes to a new plan, cancels a plan, or changes plans in the middle of a billing cycle, you can select one of the following proration assignments:

  • Assign on Anniversary
  • Assign Immediately  
  • Assign in Future 

Note: When choosing Assign Immediately, you can delay the resulting invoice until the next billing date by setting the Proration Invoice Timing field within the plan's Billing & Invoicing tab.

When choosing to assign immediately or in the future, different proration occurs, depending on the selected proration option:

  • Client Default 
  • None
  • Full Proration
  • Charge Only Proration
  • Credit Only Proration

Note: The Client Default option defaults to client proration parameter settings.

Examples of Proration Effects with Plan Changes

The tables below provide examples of proration periods and resulting charges or credits. Actual proration periods and resulting charges or credits vary depending on the plan type, billing intervals, and whether you are adding, canceling, or changing plans.

Changing to a More Expensive Plan

This example describes the different proration types and resulting charges or credits that would exist if a customer who is billed on the 15th of every month was switched from monthly Plan A to monthly Plan B on 4/27/15.

  • Plan A's monthly recurring charges are $30.
  • Plan B's monthly recurring charges are $60.
Proration Type Plan A: Credit Amount Unused service:
​4/27 through 5/14
Plan B: Charge Amount New service:
 4/27 through 5/15
Prorated Total
As of 4/27
Charge for Plan B
5/15 Invoice
Charge for Plan B
on 6/15 Invoice and All Future Invoices for the Subscription

None

None

None

$0 balance

$60

$60

Full proration

$18

($1 daily cost x 18 days of unused service)

$36

($2 daily cost x 18 days of new service)

$18 charge

($36 charge - $18 credit)

$60

$60

Charge only proration

None

$36

($2 daily cost x 18 days of new service)

$36 charge

$60

$60

Credit only proration

$18

($1 daily cost x 18 days of unused service)

None

$18 credit

(Applied to 5/15/15 invoice.)

$42

($60 charge - $18 credit)

$60

 

Changing to a Less Expensive Plan

This example describes the different proration types and resulting charges or credits that would exist if a customer who is billed on the 15th of every month was switched from monthly Plan B to monthly Plan A on 4/27/15.

  • Plan A's monthly recurring charges are $30.
  • Plan B's monthly recurring charges are $60.
Proration Type Plan A:
Credit Amount
Unused service:
​4/27 through 5/14
Plan B:
Charge Amount
New service:
4/27 through 5/15
Prorated Total
As of 4/27
Charge
for Plan A
5/15 Invoice
Charge
for Plan A
6/15 Invoice
Charge for Plan A
on 7/15 Invoice and All Future Invoices for the Subscription

None

None

None

$0 balance

$30

$30

$30

Full proration

$36

($2 daily cost x 18 days of unused service)

$18

($1 daily cost x 18 days of new service)

$18 credit

($18 charge - $36 credit applied to 5/15/15 invoice.)

$12

($30 charge - $18 credit)

$30

$30

Charge only proration

None

$18

($1 daily cost x 18 days of new service)

$18 charge

$30

$30

$30

Credit only proration

$36

($2 daily cost x 18 days of unused service)

None

$36 credit (Applied to 5/15/15 invoice.)

$0

($30 charge - $30 credit = $6 credit balance applied to 6/15/15 invoice.)

$24

($30 charge - $6 credit)

$30

 

Credit and Refund Behavior Associated with Proration

In any of the above proration scenarios, the following credit and refund behavior applies:

  • A service credit resulting from proration is assigned to the Master Plan Instance responsible for the proration.
  • A cash credit resulting from proration is assigned to the account.
  • A refund of electronic payment/refund reversal resulting from proration is applied to the method of payment associated to the billing group for the Master Plan Instance if, and only if, the payment associated to the original invoice has been applied to one invoice.
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Last modified
16:43, 31 Aug 2016

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