About Proration

Proration settings determine how much of the total charges are applied or refunded and how much of the total grants are applied or forfeited.

If two transition actions occur in the same billing period:
  • Purchase or Resume → Cancel or Suspend: If the cancel or suspend proration type is Scaled, the proration is scaled based on the cycle end time and the suspend or cancel and resume times.
    Note: When canceling an offer in the same period in which it was purchased with the purchase proration set to full and the cancel proration set to scaled, the refunded prorated amount is based on the time since the start of the cycle, not the time that the product offer is owned.
  • Suspend → Resume: If the suspend proration type is None, then there is no forfeiture or refund and no credit floor change when suspended and there is no recurring grant or charge and no credit floor change when resumed.
    Note: Credit floor changes are controlled by the credit floor adjustment parameter defined in the balance template. The balance amount change is calculated based on the proration type.
    Suspend/Resume Balance Impacts lists the proration balance impacts.
    Table 1. Suspend/Resume Balance Impacts
    Suspend Proration Setting Resume Proration Setting Resume Proration Performed
    None None None
    None Scaled None
    None Full None
    Scaled None None
    Scaled Scaled Scaled
    Scaled Full Full
    Full None None
    Full Scaled Scaled
    Full Full Full
    Note: When a resume action occurs in a separate balance period, the suspend action from a previous balance period does not impact the proration setting of the current resume action.
  • Suspend → Cancel: If during a suspend action, a balance is forfeited or refunded, there is no forfeiture or refund during the cancellation. If the suspend proration setting is None, the cancellation will forfeit or refund based on the cancel proration setting. When a forfeiture occurs during a suspend or cancel action, the credit floor is adjusted based on the credit floor setting for forfeiture in the balance template. When a grant occurs during an offer purchase or resume action, the credit floor is adjusted based on the credit floor setting for the grant in the balance template. Suspend/Cancel Credit Floor Impacts shows the possible proration outcomes based on the suspend and cancel proration settings.
    Table 2. Suspend/Cancel Credit Floor Impacts
    Suspend Proration Setting Cancel Proration Setting Cancel Proration Performed
    None None None
    None Scaled Prorated
    None Full Full
    None ConsumptionBased ConsumptionBased
    Scaled NA None
    Full NA None
When a cancellation occurs in the same billing cycle after a suspend, the credit floor is impacted because of a cancellation only if the suspend proration type is None. In this example, a cancellation occurs with 25% of the billing cycle remaining and 90% of a 100 MB offer that was purchased in the middle of the billing cycle has been used. The credit floor is impacted according to the settings in Credit Floor Impacts in Same Billing Cycle. In this example, the purchase proration was prorated.
Table 3. Credit Floor Impacts in Same Billing Cycle
Suspend Proration Setting Cancel Proration Setting Credit Floor Setting Credit Floor Impact
Nothing No Amount None No Change
Grant Adjustment The Actual Grant Amount (100 MB)
Forfeiture Amount The Calculated Forfeiture Amount (10 MB)
Prorated None No Change
Grant Adjustment The Actual Grant Amount (50 MB)
Forfeiture Amount The Calculated Forfeiture Amount (10 MB)
Full None No Change
Grant Adjustment The Actual Grant Amount (100 MB)
Forfeiture Amount The Calculated Forfeiture Amount (10 MB)

For detailed information about pricing proration and credit floor impacts, see the discussion about pricing proration in MATRIXX Pricing and Rating. For information about proration granularity, see the discussion about proration granularity in MATRIXX Pricing and Rating.