Terminate Subscriptions
The close credit method determines the credit given to customers if they close a subscription in the middle of the term.
Different credit methods have different impacts on billing when you terminate a subscription. You can select them at line level or at header level while closing the subscription.
There are three accepted types of close credit methods:
- Prorate with credit
This is the default value of the close credit method at the header level. With this credit option, if the customer has been billed for the entire term in advance, they will receive credit upon closing a subscription midterm. For example, if a subscriber was billed for the month of December 2021, in advance on December 1, 2021, and they close the subscription on December 12, then the customer receives credit for the period of December 2-31.
- Prorate without credit
With this credit option, the customer doesn't receive credit if they close a subscription midterm, even if they have been billed for the entire term already. For example, if a subscriber was billed for the month of December 2021, in advance on December 1, 2021, and they close the subscription on December 2, then the customer doesn't receive credit for the period of December 2-31.
- Full credit
With this credit option, the customer receives full credit when they close a subscription midterm, even if they have been billed for the entire term already. For example, if a subscriber was billed for the month of December 2021, in advance on December 1, 2021, and they close the subscription on December 2, then the customer receives credit for the whole period of December 1-31.
Consider this example of a subscription product:
Product Details and Billing Profile Details
| Product | Quantity | Start Date | End Date | Bill Frequency | Invoicing Rule | Billing Date | Period Start | Period Type |
|---|---|---|---|---|---|---|---|---|
| Subscription Product | 1 | 01-Sep-21 | 31-Mar-22 | Month | Advance | Period Start | Service Start | Actual |
Charge Details
| Charge | Amount | Interfaced? | Interface Date | Today’s Date |
|---|---|---|---|---|
|
Monthly Recurring |
$100 |
Yes |
02-Dec-21 |
02-Dec-21 |
Billing Summary
| Period | Charge | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount (USD) | Class | Interfaced? |
|---|---|---|---|---|---|---|---|---|
|
1 |
Monthly Recurring |
1 |
02-Dec-21 |
1-Sep-21 |
30-Sep-21 |
100 |
Invoice |
Y |
|
2 |
Monthly Recurring |
2 |
02-Dec-21 |
1-Oct-21 |
31-Oct-21 |
100 |
Invoice |
Y |
|
3 |
Monthly Recurring |
3 |
02-Dec-21 |
1-Nov-21 |
30-Nov-21 |
100 |
Invoice |
Y |
|
4 |
Monthly Recurring |
4 |
02-Dec-21 |
1-Dec-21 |
31-Dec-21 |
100 |
Invoice |
Y |
|
5 |
Monthly Recurring |
5 |
1-Jan-22 |
1-Jan-22 |
31-Jan-21 |
100 |
Invoice |
N |
|
6 |
Monthly Recurring |
6 |
1-Feb-22 |
1-Feb-22 |
28-Feb-21 |
100 |
Invoice |
N |
|
7 |
Monthly Recurring |
7 |
1-Mar-22 |
1-Mar-22 |
31-Mar-21 |
100 |
Invoice |
N |
Here’s the billing summary when the close credit method used is Full:
| Close Credit Method | Close Date | Today’s Date | Early Termination Fee |
|---|---|---|---|
| Full | 02-Dec-21 | 02-Dec-21 | $60 |
Credit memos are generated for all of the bill lines interfaced so far. The future bill lines for the months of January, February, and March are deleted.
Billing Summary
| Period | Charge | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount (USD) | Class | Interfaced? |
|---|---|---|---|---|---|---|---|---|
|
0 |
Penalty Fee |
0 |
02-Dec-21 |
02-Dec-21 |
02-Dec-21 |
60 |
Invoice |
N |
|
1 |
Monthly Recurring |
1 |
02-Dec-21 |
1-Sep-21 |
30-Sep-21 |
100 |
Invoice |
Y |
|
1 |
Monthly Recurring |
1 |
02-Dec-21 |
1-Sep-21 |
30-Sep-21 |
-100 |
Credit Memo |
N |
|
2 |
Monthly Recurring |
2 |
02-Dec-21 |
1-Oct-21 |
31-Oct-21 |
100 |
Invoice |
Y |
|
2 |
Monthly Recurring |
2 |
02-Dec-21 |
1-Oct-21 |
31-Oct-21 |
-100 |
Credit Memo |
N |
|
3 |
Monthly Recurring |
3 |
02-Dec-21 |
1-Nov-21 |
30-Nov-21 |
100 |
Invoice |
Y |
|
3 |
Monthly Recurring |
3 |
02-Dec-21 |
1-Nov-21 |
30-Nov-21 |
-100 |
Credit Memo |
N |
|
4 |
Monthly Recurring |
4 |
02-Dec-21 |
1-Dec-21 |
31-Dec-21 |
100 |
Invoice |
Y |
|
4 |
Monthly Recurring |
4 |
02-Dec-21 |
1-Dec-21 |
31-Dec-21 |
-100 |
Credit Memo |
N |
Here’s the billing summary when the close credit method is "prorate without credit":
| Close Credit Method | Close Date | Today’s Date | Early Termination Fee |
|---|---|---|---|
| Prorate without credit | 02-Dec-21 | 02-Dec-21 | $0 |
If the close credit method is "prorate without credit", then future bill lines are deleted and credit memos aren't generated.
Billing Summary
| Period | Charge | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount (USD) | Class | Interfaced? |
|---|---|---|---|---|---|---|---|---|
| 1 |
Monthly Recurring |
1 |
02-Dec-21 |
1-Sep-21 |
30-Sep-21 |
100 |
Invoice |
Y |
|
2 |
Monthly Recurring |
2 |
02-Dec-21 |
1-Oct-21 |
31-Oct-21 |
100 |
Invoice |
Y |
|
3 |
Monthly Recurring |
3 |
02-Dec-21 |
1-Nov-21 |
30-Nov-21 |
100 |
Invoice |
Y |
|
4 |
Monthly Recurring |
4 |
02-Dec-21 |
1-Dec-21 |
31-Dec-21 |
100 |
Invoice |
Y |
Here’s the billing summary when the close credit method is "prorate with credit":
| Close Credit Method | Close Date | Today’s Date | Early Termination Fee |
|---|---|---|---|
| Prorate with credit | 02-Dec-21 | 02-Dec-21 | $0 |
If close credit method is "prorate with credit", then future bill lines are deleted and credit memos are generated for the remaining duration.
Billing Summary
| Period | Charge | Sequence | InterfaceDate | Bill-from Date | Bill-to Date | Amount (USD) | Class | Interfaced? |
|---|---|---|---|---|---|---|---|---|
|
1 |
Monthly Recurring |
1 |
02-Dec-21 |
1-Sep-21 |
30-Sep-21 |
100 |
Invoice |
Y |
|
2 |
Monthly Recurring |
2 |
02-Dec-21 |
1-Oct-21 |
31-Oct-21 |
100 |
Invoice |
Y |
|
3 |
Monthly Recurring |
3 |
02-Dec-21 |
1-Nov-21 |
30-Nov-21 |
100 |
Invoice |
Y |
|
4 |
Monthly Recurring |
4 |
02-Dec-21 |
1-Dec-21 |
31-Dec-21 |
100 |
Invoice |
Y |
|
4 |
Monthly Recurring |
4 |
02-Dec-21 |
02-Dec-21 |
31-Dec-21 |
-96.77 |
Credit Memo |
N |