Proration Due to Billing Cycle Changes

For a cycle period that is shorter or longer than the standard period, you can define the following values: No Proration or Prorate.

Take the following scenarios with a product offer that grants 300 minutes a month.

• If the September billing period (30 days) is shortened to 24 days due to billing cycle change, the offer can grant 240 minutes or 300 minutes, depending on the short period proration setting.
• If the September billing period is lengthened to 36 days, the offer can grant 300 minutes or 360 minutes, depending on the long period proration setting.
• If the product offer is purchased during the nonstandard-length cycle period, it is prorated based on the short/long cycle proration first and then on the purchase proration setting. For example, if a catalog item is purchased 6 days into a 24-day monthly billing cycle, the short period proration can grant the following amounts:
  • 0 — No purchase proration or cycle proration
  • 180 — 75% of the scaled purchase proration × 240
  • 225 — 75% of the scaled purchase proration × 300
  • 240 — 100% (full amount purchase proration) × 240
  • 300 — 100% (full amount purchase proration) × 300
• If the product offer is purchased before the nonstandard-length cycle period, a cancelation does the same in reverse when there is cancelation and cycle proration. For example, if a product offer is canceled 6 days into a 24-day, monthly billing cycle, the short period proration can refund or forfeit the following amounts:
  • 0 — No cancelation proration or cycle proration
  • 180 — 75% of the scaled cancelation proration × 240 (cycle proration)
  • 225 — 75% of the scaled purchase proration × 300
  • 240 — 100% (full amount purchase proration) × 240
  • 300 — 100% (full amount purchase proration) × 300
• If the product offer is purchased and canceled within the same nonstandard-length cycle period, a modified version of how the normal proration processing is performed. So, if a 30-day monthly billing cycle is shortened to 24 days, and an offer is purchased on day 6 and canceled on day 12, the cancelation can refund or forfeit the following amounts:
  • No cancelation proration or cycle proration, so nothing is refunded or forfeited — 0%.
  • Full-amount cancelation proration and cycle proration, so everything is refunded or forfeited — 100%.

For more granular proration on scaled charges and grants, answer the proration scale unit create_config.info question: Global:What should be the proration scale unit when weekly, monthly or yearly recurring charge/grant are to be prorated (second/minute/hour/day)?. For more information, see the discussion about proration granularity.