Purchase Proration

When product offers are purchased mid-cycle, the recurring charge and grant amounts from the purchase can be applied completely, partially (scaled), or not at all.

The purchase proration setting for charges is identified in My MATRIXX as one of the following options:
  • Charge Full Amount — The charge amount is applied in total for the full cycle period in which the purchase/resume occurs.
  • Charge Prorated Amount — (Default) The charge amount is scaled according to the portion of the cycle period that the product offer is owned/valid.
  • Charge Nothing — The charge amount is not applied for any of the cycle period in which the purchase/resume occurs.
Note: One-time charges applied when an offer is purchased are not prorated and are not refunded after an offer is canceled. Charges associated with recurring application pricing components that are part of the offer are applied at purchase time and can be prorated based on the offer configuration. These charges can be refunded and prorated after the offer is canceled.
The purchase proration setting for grants is identified in My MATRIXX as one of the following options:
  • Grant Full Amount — The grant amount is applied in total for the full cycle period in which the purchase/resume occurs.
  • Grant Prorated Amount — (Default) The grant amount is scaled according to the portion of the cycle period that the product offer is owned/valid.
  • Grant Nothing — The grant amount is not applied for any of the cycle period in which the purchase/resume occurs.
You can override the purchase proration type at purchase time using the OfferRequestArray field in the following SubMan APIs:
  • MtxRequestDevicePurchaseOffer
  • MtxRequestGroupPurchaseOffer
  • MtxRequestSubscriberPurchaseOffer
For more information about these SubMan APIs, see MATRIXX Subscriber Management API.

For subscribers in a group, the charges are applied to the G/L balance, so if the subscriber is a group member, the charges are applied to the G/L balance in the group wallet. Similarly, the grants purchased by subscribers in a group are applied to the shared asset balance in the group wallet.

You can specify the proration scale unit (second, minute, hour, or day) when weekly, monthly, or yearly scaled charges and grants are to be prorated by answering the proration scale unit configuration create_config.info question. For more information about proration granularity and the proration scale unit configuration parameter, see the discussions about proration granularity.

If you do not configure proration granularity, when using the Charge Prorated Amount and Grant Prorated Amount options, the scaled charges and grants are calculated by dividing the cycle period according to a granular unit based on the cycle length, and only charging or granting for the amount of time the product offer is owned. For cycles defined in hours or days, the granular unit is seconds. For cycles defined in weeks, months, or years, the granular unit is days. The day or second that the product offer is purchased or canceled is part of the time in which the product offer is considered owned. For example, if a subscriber purchases a product offer on the third day of a weekly (7 day) cycle, the product offer is considered to be owned for 5 days of the cycle.

The scaled amount is calculated by multiplying the total price amount by the ratio between the number of granular units the product offer is owned (inclusive of the purchase day or second) and the total number of granular units in the cycle: 
Prorated amount = total amount × (number of granular units owned ÷ number of granular units in the cycle)

If a catalog item is purchased during a non-standard length cycle period that occurs due to a change in a billing cycle, it is prorated based on the billing cycle proration first and then on the purchase proration setting. See the discussion about proration due to billing cycle changes.

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.