Cycle Charges and Discounts in Arrears

You can create a product offer with charge or discount components with an application type of cycle_arrears_recurring to apply cycle recurring charges or discounts incurred during the preceding billing cycle at the end of the current billing cycle.

Note: Charges and discounts in arrears are not supported for balance cycles or purchased item cycles (even if they are aligned with a bill cycle). Credit limits are ignored for cycle arrears processing. Processing can succeed if credit limits are exceeded or there is a lack of funds.

For cycle arrears charges generated at the end of the first period, the "current" cycle is the first period and the "next" cycle is the second period. This differs from "cycle forward" charges, which are generated at the beginning of the second period. In this case, the "current" cycle is the second period, and the "preceding" cycle is the first period.

Charges in arrears are postpaid and can be defined to address pricing requirements such as minimum usage requirements.
Note: Charges in arrears are for charges that occurred in the preceding recurring cycle and they are applied in the current billing cycle. Cycle charges in arrears do not support automatic recharges.

Meters track usage for a user or group to determine cycle charges in arrears. At the end of the current cycle, any recurring charges and discounts based on these meters are applied. Proration is not applied for offers or bundles that are purchased or canceled within the preceding bill period.

Cycle charges in arrears are processed at the time the current bill cycle period closes (a configurable time interval after the end of a bill cycle period). This rule applies to the following:
  • Balance and meter periods.
  • Bill periods (charges to postpaid main balances are to the period that has ended).
  • Pricing revisions.

When a subscription or group is part of a hierarchy, cycle arrears recurring processing occurs for parent groups first.

Revenue recognition for cycle arrears charges is always immediate. When cycle arrears processing completes, an MtxRecurringEvent Event Detail Record (EDR) is generated that includes EventType 67. Charges are applied to the closing period and, for the postpaid main balance, are tracked in the MtxTransferToBilledAREvent EDR.

Billing profile templates allow you to select a cycle arrears notification profile to control when advance notifications are generated for cycle recurring charges or discounts incurred during the preceding billing cycle and applied in the current cycle for the group or subscriber. For more information, see the discussion about creating a billing profile template in My MATRIXX Help.

Cycle Charges in Arrears

Consider a product offer that includes the following:

  • A recurring charge for $5 with a 20% discount.
  • A cycle arrears recurring charge for $20 with 10% discount.

On January 1, a subscription is created and the total charges are:

  • $4 for the recurring charge for this first period between Jan-01 and Feb-01 ($5 for the charge minus $1 for the discount).
  • There are no cycle arrears charges.

On February 1, the period ends and a new recurring maintenance time is triggered. The charges are:

  • $4 for the recurring charge for the second period (between Feb-01 and Mar-01).
  • $18 ($20 charge minus $2 discount) for a cycle arrears recurring charge for the first period between (Jan-01 and Feb-01).

The total charge for the second period is $22. Each later period has a total charge of $22 ($4 recurring charge and $18 cycle arrears recurring charge).