Proration of Recurring Charges in Arrears

Recurring charges in arrears are prorated for the cycle periods in which a product offer is purchased/activated, canceled, or expires.

Recurring charges in arrears are supported for billing cycles. Recurring charges in arrears are prorated for a billing cycle when:

A purchased item is activated in the middle of a billing cycle. Recurring charges in arrears are prorated at the end of the first cycle based on the offer activation date.
A purchased item is canceled or expires within a billing cycle. Recurring charges in arrears are prorated at the end of the cycle based on the offer cancellation or expiration date.
A purchased item is activated and canceled within the same billing cycle. Recurring charges in arrears are prorated at the end of the first cycle based on the offer activation and cancellation dates.

The proration granularity can be configured in seconds, minutes, hours, or days, depending on the response to the following create_config.info file configuration 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)?

After making this change to the create_config.info question, apply the configuration change. For more information, see the discussion about applying MATRIXX Engine configuration changes in MATRIXX Installation and Upgrade.

For more information about configuring the proration scale unit, see the discussion about global system configuration in MATRIXX Configuration.

Prorated amounts are calculated as follows for each proration type in the following cases:

When a purchased item is activated in the middle of a billing cycle, and there is no expiration or cancellation within the cycle:


Arrears Purchase Proration Type	Prorated Amount
Full amount	Full amount
No amount	No amount
Scaled	Full amount * ([duration from offer activation time until cycle period end time] / [duration from cycle period start time until cycle period end time])

When a purchased item expires or is canceled in the middle of a billing cycle:


Arrears Cancel Proration Type	Prorated Amount
Full amount	Full amount
No amount	No amount
Scaled	Full amount * ([duration from cycle period start time until purchased offer cancellation/end time] / [duration from cycle period start time until cycle period end time])

When a purchased item is activated and canceled within the same cycle:


	Arrears Purchase Proration Type: Full Amount	Arrears Purchase Proration Type: No Amount	Arrears Purchase Proration Type: Scaled
Arrears Cancel Proration Type: Full Amount	Full amount	No amount	Full amount * ([duration from offer activation time until cycle period end time] / [duration from cycle period start time until cycle period end time])
Arrears Cancel Proration Type: No Amount	No amount	No amount	No amount
Arrears Cancel Proration Type: Scaled	Full amount * ([duration from cycle period start time until purchased offer cancellation/end time] / [duration from cycle period start time until cycle period end time])	No amount	Full amount * ([duration from offer activation time until purchased offer cancellation/end time] / [duration from cycle period start time until cycle period end time])

Note: For cases such as a cycle change or the last cycle, the actual cycle length may differ from defined cycle length. In these cases, the prorated amount is further adjusted according to the ratio between the actual cycle length and the defined cycle length. Scaled is the default proration type.

Proration of recurring charges in arrears is configurable in My MATRIXX. In Product Offer revisions, you can add proration types (based on the full amount, no amount, or a scaled amount) for purchase charges and cancellation charges in arrears to prorate cycle charges in arrears from an offer according to the defined proration types. For more information about configuring proration of recurring charges in arrears, see the discussions about product offer configuration and proration properties and settings in My MATRIXX Help.