Consumption-Based Proration Example

This example describes how the MATRIXX Charging Application performs proration when a group member purchases a catalog item that is shared at the group level and then cancels the offer mid-cycle.

  • Balances:
    • Shared Assets (SA) — Periodic, G/L balance owned by a group.
    • Total Contribution (TC) — Periodic, G/L balance owned by a group.
  • Group-owned offer:
    • Recurring grant to the SA balance based on the amount in the TC balance in the previous recurring period.
    • If there is no previous balance in the TC, the recurring grant to the SA is 0.
  • Subscriber-owned offer:
    • Purchase proration — Full Amount.
    • Recurring grant to the TC. Copy previous CycleBalanceUpdate amount of the TC to the SA (no real grant to group SA). For the first period, because there is no previous CycleBalanceUpdate of the TC, copy new CycleBalanceUpdate amount of the TC to the SA and do a real grant to group SA.
    • Usage is on the SA.
    • Cancelation proration — Consumption-based.
      • If the offer is shared and cancelation proration type is fair share, must specify the balance pair.
      • The contribution amount of the TC is in CycleBalanceUpdate of the TC. The contribution amount of the SA is in CycleBalanceUpdate of the SA. The Usage amount is on the SA; forfeit full contribution amount of the TC from group TC.
      • If the contribution of the SA >= the usage, then forfeit contribution of the SA (usage) from group SA, refund the usage amount to the subscriber the SA.
      • If the contribution of the SA < the usage, then do not forfeit from group SA, 'refund' the amount of the recurring grant to the subscriber SA.
      • Increase the contribution amount of the TC to the credit floor of the TC. Increase the contribution amount of the SA to the credit floor of the SA. 
-Balances: 
 * 
 * 

-Group-owned offer: 
 * 

-Subscriber-owned offer:
 * purchase proration: Full Amount
 * 
 * usage is on SA.
 * cancelation proration: consumption-based 
   . 

For example:
A group with 10 subscribers and each subscriber has an offer 
with a 2MB purchase grant and a 2MB recurring grant.

 * case 1. 
   Sub1 used 1.5MB then cancel the offer. Forfeit 2MB from group TC. 
   Forfeit 2MB-1.5MB=0.5MB from group SA. 'Refund' 1.5MB to sub1 SA.
   Before cancelation:
     Group: SA=-20MB+1.5MB=-18.5MB TC=-20MB
     Sub: SA=1.5MB
   After cancelation:
     Group: SA=-18.5MB+0.5MB=-18MB  TC=-20MB+2MB=-18MB
     Sub: SA=1.5MB-1.5MB=0

 * case 2. 
   Sub1 used 2.5MB then cancel the offer. 
   Forfeit 2MB from group TC. 
   No forfeit from group SA. 
   'Refund' 2MB to sub SA.
   Before cancelation:
     Group: SA=-20MB+2.5MB=-17.5MB TC=-20MB
     Sub: SA=2.5MB
   After cancelation:
     Group: SA=-18.5MB+0.5MB=-17.5MB  TC=-20MB+2MB=-18MB
     Sub: SA=2.5MB-2MB=0.5MB

Restrictions:
 * TC and SA balances must have the same unit.
 * TC and SA balances must have the same billing cycle.
 * Offer purchased by group:
   * has a recurring grant which scale basis is balance_amount,
     from previous slot of TC to current slot of SA.
 * Offer purchased by subscriber: 
   * has a recurring grant that grants to group TC. 
   * grant cancelation proration type is consumption based. 
   * Has SharedBalance1/2 defined as TC/SA that is triggered by 
     the same bill cycle.
   * has a usage charge component charges to SA.
For example, there is a group with 10 subscribers and each subscriber has an offer with a 2MB purchase grant and a 2MB recurring grant.
  • Example A:
    • Subscriber1 used 1.5MB then canceled the offer
      • Forfeit 2MB from group TC
      • Forfeit 2MB-1.5MB=0.5MB from group SA
      • Refund 1.5MB to Subscriber1 SA
    • Before cancelation
      • Group
        • SA=-20MB+1.5MB=-18.5MB
        • TC=-20MB
      • Subscriber
        • SA=1.5MB
        • After cancelation: Group SA=-18.5MB+0.5MB=-18MB, Group TC=-20MB+2MB=-18MB, Subscriber SA=1.5MB-1.5MB=0
  • Example B:
    • Subscriber1 used 2.5MB then canceled the offer
      • Forfeit 2MB from group TC
      • Do not forfeit from group SA
      • Refund 2MB to subscriber SA
    • Before cancelation
      • Group
        • SA=-20MB+2.5MB=-17.5MB
        • TC=-20MB
      • Subscriber
        • SA=2.5MB
        • After cancelation: Group SA=-18.5MB+0.5MB=-17.5MB, Group TC=-20MB+2MB=-18MB, Subscriber SA=2.5MB-2MB=0.5MB