Partial Period Billing with Thresholds

Subscription Management provides configurable controls for how partial billing periods are handled when a subscription starts or ends outside the standard billing cycle boundary. Instead of always prorating these partial periods, you can determine whether the first partial period and last partial period are billed in full, not billed, or conditionally billed based on a defined threshold.

Partial period billing behavior is controlled through attributes available in the subscription profile and on the product summary. Separate settings are available for the first partial period and the last partial period, allowing different treatment at the beginning and end of the subscription term.

For each partial period, the following options are available:

• Bill partial period in full

  The application charges the full period amount regardless of the number of days in the partial period.

• Do not bill partial period

  The application does not generate a charge for the partial period.

• Do not bill partial period if below threshold

  The application evaluates the partial period against a configured minimum before deciding whether to bill.

The threshold-based option applies only when Do not bill partial period if below threshold is selected.

When threshold evaluation is enabled, the threshold can be defined in one of the following ways:

• Number of days

• Fraction of the charge period

During billing, the application compares the actual length of the partial period to the configured threshold. Here's the threshold evaluation behavior:

• If the partial period is below the threshold, no charge is applied.
• If the partial period meets or exceeds the threshold, billing is applied according to the configured rules.

Example using number of days:

Assume the threshold is set to 10 days.

• If the partial period is 7 days, the period is below the threshold and no charge is generated.

• If the partial period is 12 days, the threshold is met and the period is billed.

Example using fraction of charge period:

Assume the threshold is set to 0.5 of the charge period and the charge period is one month.

• If the partial period is less than half of the monthly period, no charge is generated.
• If the partial period is at least half of the monthly period, the period is billed.

Because the threshold is evaluated relative to the charge period, the actual number of days required to meet the threshold depends on the billing frequency defined for the subscription product.

These controls apply consistently when calculating both billing and credit outcomes for partial periods. This allows organizations to suppress very short billing fragments while maintaining predictable and consistent invoicing behavior.

To use these capabilities, the Enable Partial Period Advanced Billing Options profile option must be set to Yes. After this option is enabled, the attributes for controlling first and last partial period behavior become available in the subscription profile and product summary. Threshold values and billing behavior can be maintained through the Redwood user interface, the ADF interface, REST services, or import.