Manage Price Adjustments

You can make price adjustments on subscriptions, including making multiple adjustments, and then apply them to one or more discretionary discounts or markups.

Note: Be sure to adjust prices before setting a subscription to active. You can't adjust prices when a subscription is in active status.

To make price adjustments for a subscription product:

Navigate to the Pricing subtab and click the Add icon in the Adjustment column.
On the Price Adjustments page, click Add Adjustment.
Enter the adjustment name.
Click the Type drop-down list and select a price adjustment type.
Enter the price adjustment value.
Select whether the price adjustment basis is list price or net price.
Click the Effectivity drop-down list and select the period when the adjustment is active.
Enter the reason.
Click Save and Close.

The Effectivity drop-down list lets you select the duration you want to apply a discount or markup for. In this drop-down list, you can select:

All terms: Applies price adjustments for the entire term.
First periods: Applies price adjustments only for specified first periods.
Last periods: Applies price adjustments only for specified last periods.
Specific periods: Applies price adjustments for the period range specified in the Effective From and Effective To fields.
First full periods: Applies price adjustments correctly when a subscription starts mid-period and uses Calendar Month as the period start value. For example, when a subscription starts on January 8 and you select this option to give a discount for 3 months, the discount is applied starting January 8 till April 7.

Examples of How Effectivity List Values Impact a Billing Schedule

This example illustrates how the Effectivity drop-down list values affect the billing schedule:

Configuration

Let's assume you have configured the application such as:

Product

Product	Quantity	Start Date	End Date	Bill Frequency	Invoice Rule	Billing Date	Period Start
Product 1	1	16-Jan-20	15-Jan-21	Month	Advance	Period Start	Calendar Month

Charges

Charge	Periodicity	Unit Price
Recurring Fee	Month	$100

Price Adjustments

Charge	Adjustment	Adjustment Type	Value	Basis	Effectivity	Effective From	Effective To	Duration
Recurring Fee	100% off	Discount Percent	100	List Price	First full periods			3
Recurring Fee	30% off	Discount Percent	30	Net Price	First full periods	4	5

Scenario 1: First Full Periods and Specific Period Adjustments

In this scenario, here's how the application generates the billing summary:

Period	Charge	Interface Date	Bill-from Date	Bill-to Date	Amount
1	Recurring Fee	1/16/2020	1/16/2020	1/31/2020	0.00
2	Recurring Fee	2/1/2020	2/1/2020	2/29/2020	0.00
3	Recurring Fee	3/1/2020	3/1/2020	3/31/2020	0.00
4	Recurring Fee	4/1/2020	4/1/2020	4/30/2020	35.00
5	Recurring Fee	5/1/2020	5/1/2020	5/31/2020	70.00
6	Recurring Fee	6/1/2020	6/1/2020	6/30/2020	100.00
7	Recurring Fee	7/1/2020	7/1/2020	7/31/2020	100.00
8	Recurring Fee	8/1/2020	8/1/2020	8/31/2020	100.00
9	Recurring Fee	9/1/2020	9/1/2020	9/30/2020	100.00
10	Recurring Fee	10/1/2020	10/1/2020	10/31/2020	100.00
11	Recurring Fee	11/1/2020	11/1/2020	11/30/2020	100.00
12	Recurring Fee	12/1/2020	12/1/2020	12/31/2020	100.00
13	Recurring Fee	1/1/2021	1/1/2021	1/15/2021	48.39

When you click the $35 amount in period 4, the application displays:

Field	Amount
List Price	100
100% off List 4/1/20 - 4/15/20	-50
100% off List 4/1/20 - 4/15/20	-50
Net Price	35

Scenario 2: First Full Periods and Specific Period Adjustments with Termination

Now, let's look at the same configuration again. In this scenario, let's assume that you have invoiced the subscription till period 4, that's 1-Apr-20, and the user closes the line on April 11 with the Close Credit Method set as Prorate with credit. Here's how the application generates the billing summary:

Period	Charge	Interface Date	Bill-from Date	Bill-to Date	Amount
1	Recurring Fee	1/16/2020	1/16/2020	1/31/2020	0.00
2	Recurring Fee	2/1/2020	2/1/2020	2/29/2020	0.00
3	Recurring Fee	3/1/2020	3/1/2020	3/31/2020	0.00
4	Recurring Fee	4/1/2020	4/1/2020	4/30/2020	11.67