Partial Period Billing

You can implement rules so that the billing engine calculates a partial period within the service duration driven by your business.

Let's take an example where we have a service running from 15th January 2019 to 10th April 2019. You can bill your subscription using either of these strategies.

• Two months of service and a partial period at the end. The partial period would be 15th March 2019 to 10th April 2019.

• A service period tied to a calendar period. Here, the first partial period is 15th January 2019 to 31st January 2019, then two full periods of February and March, and the second partial period of 1st April 2019 to 10th April 2019.

You can tie the period start date to the service start date of the calendar start date. For service start date, the period starts from the service start date. For the calendar start date, the period starts from the calendar start date, which can be the first day of the month.

The period type determines whether the partial period duration is based on a fixed number of days or the actual days in the period.

This setup also applies to other types of periodicity, such as Quarterly.

How Period Type Influences Duration

Let's take an example where a service starts on 1st March 2019 and ends on 10th February 2020, and the period start date is tied to the service start date.

If the period type is actual, here's how the application calculates duration:

Date	Duration
1st March 2019 - 31st January 2020	11 months
1st February 2020 - 10th February 2020	0.357 months (10/28)

Note that since February has 28 days, the partial period is calculated based on 28 days. The total duration is calculated as 11.357 months.

If the period type is fixed, here's how the application calculates the duration:

Date	Duration
1st March 2019 - 31st January 2020	11 months
1st February 2020- 10th February 2020	0.333 months (10/30)

Note that a month is set as 30 days, hence the partial period is calculated based on 30 days. The total duration is calculated as 11.333 months.

How Period Start Influences Duration

Let's take an example, where a service starts on 15th January 2019 and ends on 10th April 2019 and the period type is actual.

If the period start is service start, here's how the application calculates the duration:

Date	Duration
15th January 2019 - 14th March 2019	2 months (2 full periods)
15th March 2019 - 10th April 2019	0.871 months (27/31)

The total duration is calculated as 2.871 months.

If the period start is a calendar month, here's how the application calculates the duration:

Date	Duration
15th January 2019 - 31st January 2019	0.548 months (17/31) - First partial period
1st February 2019 - 31st March 2019	2 months - 2 full periods tied to calendar months
1st April 2019 - 10th April 2019	0.333 (10/30) - Second partial period

The total duration is calculated as 2.881 months.