Proportional Charge Bundle

A bundle can be configured with proportional charges across the included offers. A proportional charge bundle allows the user to configure pricing for charge and discount at the bundle level. The bundle price is distributed to the constituent offers. The charge amount for each offer is calculated based on the distribution method and distribution percentage for that offer. For more information, see the examples further on in this topic.

Product offer revenue, taxes, and fees are determined based on the revenue distribution method defined in My MATRIXX. The charge or discount component is at the bundle level for the purchase, purchase item activation, purchased item cycle recurring, cancelation, suspend, or resume applications. There can be only one charge and one discount component for these applications.

Note: Recurring discount components where Cycle is set to Any cannot be added to proportional charge bundles.

For information about extending proportional charge bundles, see the discussion about extending bundles.

Charge Distribution

As shown in Distribution Methods, revenue distribution methods can be tax inclusive or tax exclusive.

Note: For the application types purchase and cancelation, the product offers within a proportional charge bundle cannot mix tax-inclusive and tax-exclusive pricing.

Table 1. Distribution Methods
Distribution Method	Tax Inclusive?	Tax Exclusive?	Description
Distribute total	yes	n/a	The total charge, including taxes and fees, is distributed.
Distribute base charge and taxes	yes	n/a	The base charge and taxes are distributed without any fees.
Distribute base charge only	yes	yes	The base charge is distributed without any taxes or fees.

For more information about configuring the proportional bundle distribution method, see the discussion about configuring bundle level pricing in My MATRIXX Help.

The SubMan API MtxPricingBundleDetailInfo includes information about proportional charge bundles, including distribution methods. For more information, see the discussion about MtxPricingBundleDetailInfo in MATRIXX Subscriber Management API.

Distribution Method Examples

Distribute Total Method (Tax Inclusive)

This method includes the base charges, taxes, and fees in the distribution.

In this example, there are two product offers (O1 and O2), and the total bundle charge includes all taxes and fees:

Bundle charge distribution:
- Product offer O1 = 65%
- Product offer O2 = 35%
Product offer O1 taxes and fees:
- Fee 1 = $5.00
- Tax 1 = 12%
- Tax 2 = 8%
Product offer 02 taxes and fees:
- Fee 2 = $1.00
- Tax 3 = 25%

Distribution and break down of charges:

Product offer O1 distributed charge = $65.00 (65% * 100.00)
- Fee 1 = $5.00
- Base charge = $50 (60.00 / (1.0 + (.12 + .08)))
- Tax 1 = $6.00 (12% * 50.00)
- Tax 2 = $4.00 (8% * 50.00)
Product Offer 2 distributed charge = $35.00 (35% * 100.00)
- Fee 2 = $1.00
- Base charge = $27.20 ($34.00 / (1.0 + .25)
- Tax 3 = $6.80 (25% * 27.20)
Total bundle charge = $100.00

Tax inclusive distribute total method diagram — Figure 1. Distribute Total Method, Tax Inclusive

Distribute Base Charge Method (Tax Exclusive)

This method excludes taxes and fees.

In this example, there are two product offers (O1 and O2) the total bundle charge is the sum of the base charges without taxes and fees:

Amount to distribute = $100.00 (total of O1 and O2 base charges)
Product Offer O1:
- Base charge = $65 (65% * 100.00)
- Fee 1 = $5.00
- Tax 1 = $7.80 (12% * 65.00)
- Tax 2 = $5.20 (8% * 65.00)
Product Offer O2:
- Base charge = $35.00 (35% * 100.00)
- Fee 2 = $1.00
- Tax 3 = $8.75 (25% * 35.00
Total bundle charge = $127.75

Figure 2. Distribute Base Charge Method (Tax Exclusive)

Pricing Components

The components in a proportional charge bundle can only be charge or discount components for qualified applications. In a proportional charge bundle, the charge and discount pricing components are referenced from the bundle, not the product offers within the bundle.

For proportional charge bundles, the per-product offer configuration retains other types of pricing components including grants, sponsorships, and policies, and pricing components for other applications including usage, and recurring processing for balance cycles and bill cycles. Taxes and fees are configured on the individual product offers within the proportional charge bundle.

For more information about configuring sponsorship, see the discussion about sponsorship.

Contract Offers

A service contract offer in a proportional charge bundle cannot contain a payment schedule. If the offer has an early termination charge (ETC) schedule associated with it, the cancel components in the proportional charge bundle use the ETC schedule to determine the cancelation charges. The cancel charge is then distributed to all offers in the bundle.

If a service contract offer has an ETC schedule associated with it, normalizers are used during rating.

U. S. Taxes

Proportional charge bundles support U. S. taxation for all three distribution methods described in Distribution Methods. When U. S. taxation applies, the charge and discount, if any, from the bundle level are distributed to each offer in the bundle, and U. S. taxes and fees for the distributed charge and any discount are calculated for each bundle offer.

If the provider passes the provider tax to the consumer, the funds representing the passed through tax are added to the base charge and are treated as taxable gross receipts to the provider. This tax then becomes subject to various consumer- and provider-based taxation. This is called tax-on-tax. For more information about tax-on-tax, see the discussion about consumer- and provider-paid taxes.

The MtxRequestSubscriberPurchaseOffer, MtxRequestGroupPurchaseOffer, and MtxRequestDevicePurchaseOffer SubMan APIs optionally accept either zip+4, NPA/NXX, or geocode as input. For more information, see the discussions about MtxRequestSubscriberPurchaseOffer, MtxRequestGroupPurchaseOffer, and MtxRequestDevicePurchaseOffer in MATRIXX Subscriber Management API.