Bill Partial Periods
You can implement rules, wherein, the billing engine calculates a partial period within the service duration driven by your business.
You can tie the period start date to the service start date or 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 fixed number of days or actual days in the period. If the period type is actual, the period duration is the actual number of days in the period. If the period type is fixed, the number of days in the period are fixed.
How Period Start Impacts 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.
Let’s consider the partial period calculations when Period Start is Service Start:
Subscription details when Billing Frequency is Month:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 01 | One time | NA | $1000 |
| Sub 01 | Recurring | Monthly | $100 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 01 | 14 -Jan-2022 | 05-Dec-2022 | Advance | Service Start | Month | Actual | Period Start | <no entry> |
Here, the partial period is 14-Nov-2020 to 05-Dec-2020. The partial period amount will be calculated as follows:
(No of days in Partial period / Today number of days )* charge
(22/30) * 100 = 73.33
Here’s the Billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec-2022 | $1000 |
| 1 | Recurring Charge | 1 | 14-Jan-2022 | 14-Jan-2022 | 13-Feb-2022 | 100 |
| 2 | Recurring Charge | 2 | 14-Feb-2022 | 14-Feb-2022 | 13-Mar-2022 | 100 |
| 3 | Recurring Charge | 3 | 14-Mar-2022 | 14-Mar-2022 | 13-Apr-2022 | 100 |
| 4 | Recurring Charge | 4 | 14-Apr-2022 | 14-Apr-2022 | 13-May-2022 | 100 |
| 5 | Recurring Charge | 5 | 14-May-2022 | 14-May-2022 | 13-Jun-2022 | 100 |
| 6 | Recurring Charge | 6 | 14-Jun-2022 | 14-Jun-2022 | 13-Jul-2022 | 100 |
| 7 | Recurring Charge | 7 | 14-Jul-2022 | 14-Jul-2022 | 13-Aug-2022 | 100 |
| 8 | Recurring Charge | 8 | 14-Aug-2022 | 14-Aug-2022 | 13-Sep-2022 | 100 |
| 9 | Recurring Charge | 9 | 14-Sep-2022 | 14-Sep-2022 | 13-Oct-2022 | 100 |
| 10 | Recurring Charge | 10 | 14-Oct-2022 | 14-Oct-2022 | 13-Nov-2022 | 100 |
| 11 | Recurring Charge | 11 | 14-Nov-2022 | 14-Nov-2022 | 13-Dec-2022 | 100 |
| 12 | Recurring Charge | 12 | 14-Dec-2022 | 14-Dec-2022 | 05-Dec-2022 | 73.33 |
Billing details if the Billing Frequency is Quarter:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 02 | One time | NA | $1000 |
| Sub 02 | Recurring | Quarterly | $300 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 02 | 14 -Jan-2022 | 05-Dec-2022 | Advance | Service Start | Quarter | Actual | Period Start | <no entry> |
Here the partial period is in the last quarter. It will be calculated as follows:
14-Oct-2020 to 13-Nov-2020 = 100
14-Nov-2020 to 05-Dec-2020 = (22/30)*100 = 73.33
Total amount for partial period 100 + 73.33 =173.33
Here’s the Billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec-2022 | $1000 |
| 1 | Recurring Charge | 1 | 14-Jan-2022 | 14-Jan-2022 | 13-Apr-2022 | 300 |
| 2 | Recurring Charge | 2 | 14-Apr-2022 | 14-Apr-2022 | 13-Jul-2022 | 300 |
| 3 | Recurring Charge | 3 | 14-Jul-2022 | 14-Jul-2022 | 13-Oct-2022 | 300 |
| 4 | Recurring Charge | 4 | 14-Oct-2022 | 14-Oct-2022 | 05-Dec-2022 | 173.33 |
Subscription Details if Billing frequency is Year:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 03 | One time | NA | $1000 |
| Sub 03 | Recurring | Yearly | $1200 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 03 | 14 -Jan-2022 | 05-Dec-2022 | Advance | Service Start | Year | Actual | Period Start | <no entry> |
Here the partial period will be calculated as follows:
14-Jan-2020 to 13-Nov-2020 = 10 months * $100 = 1000
14-Nov-2020 to 05-Dec-2020 = 73.33
(No of days in Partial period / total number of days )* charge
(22/30)*100
Total amount for partial period 1000 + 73.33 =1073.33
Here’s the billing summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec-2022 | $1000 |
| 1 | Recurring Charge | 1 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec -2022 | 1073.33 |
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.
Let’s consider the partial period calculations when Period Start is Calendar Month:
If Billing Frequency is Month:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 01 | One time | NA | $1000 |
| Sub 01 | Recurring | Monthly | $100 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 01 | 14 -Jan-2022 | 05-Dec-2022 | Advance |
Calendar Month |
Month | Actual | Period Start | <no entry> |
Here, the first partial period will be from 14-Jan-2020 to 31-Jan-2020 and the next partial period will be from 01-Dec-2020 to 05-Dec-2020
The partial periods will be calculated as follows:
14-Jan to 31-Jan-2020 = (18/31)*100=58.064
01-Dec to 05-Dec-2020 = (5/31) * 100=16.129
Here’s the billing summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec-2022 | $1000 |
| 1 | Recurring Charge | 1 | 14-Jan-2022 | 14-Jan-2022 | 31-Jan-2022 | 58.06 |
| 2 | Recurring Charge | 2 | 01-Feb-2022 | 01-Feb-2022 | 28-Feb-2022 | 100 |
| 3 | Recurring Charge | 3 | 01-Mar-2022 | 01-Mar-2022 | 31-Mar-2022 | 100 |
| 4 | Recurring Charge | 4 | 01-Apr-2022 | 01-Apr-2022 | 30-Apr-2022 | 100 |
| 5 | Recurring Charge | 5 | 01-May-2022 | 01-May-2022 | 31-May-2022 | 100 |
| 6 | Recurring Charge | 6 | 01-Jun-2022 | 01-Jun-2022 | 30-Jun-2022 | 100 |
| 7 | Recurring Charge | 7 | 01-Jul-2022 | 01-Jul-2022 | 31-Aug-2022 | 100 |
| 8 | Recurring Charge | 8 | 01-Aug-2022 | 01-Aug-2022 | 31-Aug-2022 | 100 |
| 9 | Recurring Charge | 9 | 01-Sep-2022 | 01-Sep-2022 | 30-Sep-2022 | 100 |
| 10 | Recurring Charge | 10 | 01-Oct-2022 | 01-Oct-2022 | 31-Oct-2022 | 100 |
| 11 | Recurring Charge | 11 | 01-Nov-2022 | 01-Nov-2022 | 30-Nov-2022 | 100 |
| 12 | Recurring Charge | 12 | 01-Dec-2022 | 01-Dec-2022 | 05-Dec-2022 | 16/13 |
If Billing Frequency is Quarter:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 02 | One time | NA | $1000 |
| Sub 02 | Recurring | Quarterly | $300 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 02 | 14 -Jan-2022 | 05-Dec-2022 | Advance |
Calendar Month |
Quarter | Actual | Period Start | <no entry> |
There will be 2 partial periods:
14-Jan-2022 to 31-Jan-2022
(No of days in Partial period / Today number of days )* charge
(18/31)*100=58.064
01-Nov-2022 to 30-Nov-2022 =100
01-Dec-2022 to 05-Dec-2022 = (5/31) * 100=16.129
(No of days in Partial period / Today number of days )* charge
100 + 16.129 = 116.13
Here’s the Billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec-2022 | $1000 |
| 1 | Recurring Charge | 1 | 14-Jan-2022 | 14-Jan-2022 | 31-Jan-2022 | 58.06 |
| 2 | Recurring Charge | 2 | 01-Feb-2022 | 01-Feb-2022 | 30-Apr-2022 | 300 |
| 3 | Recurring Charge | 3 | 01-May-2022 | 01-May-2022 | 31-Jul-2022 | 300 |
| 4 | Recurring Charge | 4 | 01-Aug-2022 | 01-Aug-2022 | 31-Oct-2022 | 300 |
| 5 | Recurring Charge | 5 | 01-Nov-2022 | 01-Nov-2022 | 05-Dec-2022 | 113.13 |
Subscription details if Billing Frequency is Year:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 03 | One time | NA | $1000 |
| Sub 03 | Recurring | Yearly | $1200 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 03 | 14 -Jan-2022 | 05-Dec-2022 | Advance |
Calendar Month |
Year | Actual | Period Start | <no entry> |
Here the Partial period will be calculated as follows:
14-Jan-2022 to 31-Jan-2022 = (18/31)*100=58.064
01-Feb-2022 to 30-Nov-2022 = 100* 10 = 1000
01-Dec-2022 to 05-Dec-2022 = (5/31) * 100=16.129
1000 + 16.129 = 1016.13
Here’s the billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 14-Jan-2022 | 14-Jan-2022 | 05-Dec-2022 | $1000 |
| 1 | Recurring Charge | 1 | 14-Jan-2022 | 14-Jan-2022 | 31-Jan-2022 | 58.06 |
| 2 | Recurring Charge | 2 | 01-Feb-2022 | 01-Feb-2022 | 05-Dec-2022 | 1016.13 |
How Period Type Impacts 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.
Let’s consider the following partial period calculations when the Period Type is Actual:
Subscription details when Billing Frequency is Month:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 01 | One time | NA | $1000 |
| Sub 01 | Recurring | Monthly | $100 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date |
| Sub 01 | 10-Jan-2020 | 22-Dec-2020 | Advance | Service Start | Month | Actual | Period Start |
Here, the period start is Service start. Therefore, 10-Jan-2020 to 10-Dec-2020 will be complete periods and the 10-Dec-2020 to 22-Dec-2020 will be the partial period.
The partial period will be calculated as follows:
(No of days in Partial period / Total number of days )* charge
(13/31)*100 = $41.935
Here is the billing summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | $1000 |
| 1 | Recurring Charge | 1 | 10-Jan-2020 | 10-Jan-2020 | 09-Feb-2020 | 100 |
| 2 | Recurring Charge | 2 | 10-Feb-2020 | 10-Feb-2020 | 09-Mar-2020 | 100 |
| 3 | Recurring Charge | 3 | 10-Mar-2020 | 10-Mar-2020 | 09-Apr-2020 | 100 |
| 4 | Recurring Charge | 4 | 10-Apr-2020 | 10-Apr-2020 | 09-May-2020 | 100 |
| 5 | Recurring Charge | 5 | 10-May-2020 | 10-May-2020 | 09-Jun-2020 | 100 |
| 6 | Recurring Charge | 6 | 10-Jun-2020 | 10-Jun-2020 | 09-Jul-2020 | 100 |
| 7 | Recurring Charge | 7 | 10-Jul-2020 | 10-Jul-2020 | 09-Aug-2020 | 100 |
| 8 | Recurring Charge | 8 | 10-Aug-2020 | 10-Aug-2020 | 09-Sep-2020 | 100 |
| 9 | Recurring Charge | 9 | 10-Sep-2020 | 10-Sep-2020 | 09-Oct-2020 | 100 |
| 10 | Recurring Charge | 10 | 10-Oct-2020 | 10-Oct-2020 | 09-Nov-2020 | 100 |
| 11 | Recurring Charge | 11 | 10-Nov-2020 | 10-Nov-2020 | 09-Dec-2020 | 100 |
| 12 | Recurring Charge | 12 | 10-Dec-2020 | 10-Dec-2020 | 22-Dec-2020 | $41.94 |
Subscription details when ou can enable Prorate :
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 02 | One time | NA | $1000 |
| Sub 02 | Recurring | Quarterly | $300 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 01 | 10-Jan-2020 | 22-Dec-2020 | Advance | Service Start | Quarter | Actual | Period Start | <no entry> |
Here the partial period will be from 10-Oct-2020 to 22-Dec-2020. Applying the same formula as before, the partial period will be billed as follows:
10-Oct-2020 – 09-Nov-2020 = $100
10-Nov-2020 – 09-Dec-2020 = $100
10-Dec-2020 – 22-Dec-2020 = (13/31)*100 = $41.935
Partial Period Amount = $241.94
Here’s the Billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | $1000 |
| 1 | Recurring Charge | 1 | 10-Jan-2020 | 10-Jan-2020 | 09-Apr-2020 | 300 |
| 2 | Recurring Charge | 2 | 10-Apr-2020 | 10-Apr-2020 | 09-Jul-2020 | 300 |
| 3 | Recurring Charge | 3 | 10-Jul-2020 | 10-Jul-2020 | 09-Oct-2020 | 300 |
| 4 | Recurring Charge | 4 | 10-Oct-2020 | 10-Oct-2020 | 22-Dec-2020 | 241.94 |
Subscription details if the Billing Frequency is Yearly:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 03 | One time | NA | $1000 |
| Sub 03 | Recurring | Yearly | $1200 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 01 | 10-Jan-2020 | 22-Dec-2020 | Advance | Service Start | Year | Actual | Period Start | <no entry> |
Here the partial period will be calculated as follows:
10-Jan-2020 – 09-Dec-2020 (11 Months) = 100*11 = 1100
10-Dec-2020 – 22-Dec-2020 = (13/31)*100
= 41.935
Total Amount for the partial Period = 1100+41.94= 1141.94
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | $1000 |
| 1 | Recurring Charge | 1 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | 1141.94 |
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.
Let’s consider the following partial period calculations when the Period Type is Fixed:
Subscription Details when Billing Frequency is Month:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 01 | One time | NA | $1000 |
| Sub 01 | Recurring | Monthly | $100 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 01 | 10-Jan-2020 | 22-Dec-2020 | Advance | Service Start | Month | Fixed | Period Start | <no entry> |
Here the partial period is from 10-Dec-2020 to 22-Dec-2020. The partial period amount calculation will be as follows:
(No of days in Partial period / Fixed number of days)* charge
(13/30) *100
Total amount for partial period = 43.333
Here’s the Billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | $1000 |
| 1 | Recurring Charge | 1 | 10-Jan-2020 | 10-Jan-2020 | 09-Feb-2020 | 100 |
| 2 | Recurring Charge | 2 | 10-Feb-2020 | 10-Feb-2020 | 09-Mar-2020 | 100 |
| 3 | Recurring Charge | 3 | 10-Mar-2020 | 10-Mar-2020 | 09-Apr-2020 | 100 |
| 4 | Recurring Charge | 4 | 10-Apr-2020 | 10-Apr-2020 | 09-May-2020 | 100 |
| 5 | Recurring Charge | 5 | 10-May-2020 | 10-May-2020 | 09-Jun-2020 | 100 |
| 6 | Recurring Charge | 6 | 10-Jun-2020 | 10-Jun-2020 | 09-Jul-2020 | 100 |
| 7 | Recurring Charge | 7 | 10-Jul-2020 | 10-Jul-2020 | 09-Aug-2020 | 100 |
| 8 | Recurring Charge | 8 | 10-Aug-2020 | 10-Aug-2020 | 09-Sep-2020 | 100 |
| 9 | Recurring Charge | 9 | 10-Sep-2020 | 10-Sep-2020 | 09-Oct-2020 | 100 |
| 10 | Recurring Charge | 10 | 10-Oct-2020 | 10-Oct-2020 | 09-Nov-2020 | 100 |
| 11 | Recurring Charge | 11 | 10-Nov-2020 | 10-Nov-2020 | 09-Dec-2020 | 100 |
| 12 | Recurring Charge | 12 | 10-Dec-2020 | 10-Dec-2020 | 22-Dec-2020 | 43.33 |
Subscription details if the Billing Frequency is Quarter:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 02 | One time | NA | $1000 |
| Sub 02 | Recurring | Quarterly | $300 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 02 | 10-Jan-2020 | 22-Dec-2020 | Advance | Service Start | Quarter | Fixed | Period Start | <no entry> |
10-Oct-2020 to 09-Dec-2020 = 200
10-Dec-2020 to 22-Dec-2020 = (13/30)*100 = 43.333
Last partial period, 243.333
Here’s the Billing Summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | $1000 |
| 1 | Recurring Charge | 1 | 10-Jan-2020 | 10-Jan-2020 | 09-Apr-2020 | 300 |
| 2 | Recurring Charge | 2 | 10-Apr-2020 | 10-Apr-2020 | 09-Jul-2020 | 300 |
| 3 | Recurring Charge | 3 | 10-Jul-2020 | 10-Jul-2020 | 09-Oct-2020 | 300 |
| 4 | Recurring Charge | 4 | 10-Oct-2020 | 10-Oct-2020 | 22-Dec-2020 | 243.33 |
Subscription Details if the Billing frequency is Year:
| Subscription Product | Charge Name | Periodicity | Amount |
| Sub 03 | One time | NA | $1000 |
| Sub 03 | Recurring | Yearly | $1200 |
| Subscription | Start Date | End Date | Invoicing Rule | Period Start | Billing Frequency | Period Type | Billing Date | Billing Interface offset Date |
| Sub 03 | 10-Jan-2020 | 22-Dec-2020 | Advance | Service Start | Year | Fixed | Period Start | <no entry> |
Here the partial period will be calculated as follows:
10-Jan-2020 to 09-Dec-2020, 11 months = 1100
10-Dec-2020 to 22-Dec-2020 = (13/30)*100 = 43.333
Total = $1143.33
Here’s the billing summary for this subscription:
| Period | Charge Name | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount |
| 0 | One Time Charge | 0 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | $1000 |
| 1 | Recurring Charge | 1 | 10-Jan-2020 | 10-Jan-2020 | 22-Dec-2020 | 1143.33 |
Prorate by Day
You can enable Prorate by day from the Subscription Profile or the Subscription Product to prorate partial periods greater than a month.
This lets you calculate the price for a charge per day and multiply it by the number of days in the partial period. Consider the following example of a 1 year 14 days subscription with a yearly charge of $12,000.
By default, the prorate by day checkbox is unchecked. In this scenario, the partial period will be calculated by prorating by month.
Monthly rate is calculated Yearly charge divided by 12.
Monthly rate = 12000/12 = 1000 per month.
This amount is prorated on the monthly rate and a partial period of 14 days:
1000*14/31 = 451.61
When you enable Prorate by day, a daily rate is computed based on the yearly charge divided by the number of days in a year.
Daily rate = 12000/365 = 32.88
Then the partial period amount is calculated by multiplying the 14-day partial period by the daily rate.
14*32.88 = 460.27
Note: If the Period Type is Actual, the application divides by 365/366 days. If the Period Type is Fixed, daily rates are calculated by dividing by 360.
Consider the following example of a subscription with yearly billing and the following details:
| Product | Quantity | Start Date | End Date | Duration | Period | Billing Frequency | Inv Rule | Period Start | Prorate by day |
| P1 | 1 | 01-Jan-2021 | 12-May-2021 | 132 | Days | Year | Advance | Service Start | Yes |
| Charge | Periodicity | Unit Price |
| Recurring | Year | 12000 |
Here, the billing amount will be calculated by multiplying the daily rate by the number of days in the partial period.
(12000/365)*132 = 4339.75
Here’s the billing summary for this subscription:
| Period | Charge | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount | End of Full Period | Days in partial period | Total days in the period |
| 1 | Recurring Charge | 1 | 01-Jan-2021 | 01-Jan-2021 | 12-May-2021 | 4339.75 | 31-Dec-2021 | 132 | 365 |
Similarly, consider the example of another subscription with quarterly billing and an align billing date:
| Product | Quantity | Start Date | End Date | Duration | Period | Alignment Date | Billing Frequency | Inv Rule | Period Start | Prorate by day |
| P2 | 1 | 28-Jan-2020 | 27-Jan-2021 | 1 | Year | 01-Jan-2020 | Quarter | Advance | Service Start | Yes |
| Charge | Periodicity | Unit Price |
| Recurring | Year | 4000 |
Here, since there is an alignment date of 01-Jan-2020, the first partial period will be from 28-Jan-2020 to 31-Mar-2020.
This partial period amount will be calculated as follows:
(Quarterly Charge * Number of days in this quarter) / Number of days in the partial period = (4000/91)*64 = 2813.2
The remaining quarters will be charged the quarterly amount $4000
The last partial period from 01-Jan-2021 to 27-Jan-2021 will be calculated similarly as follows:
(4000/90)*27 = 1200
Here’s the billing summary for this subscription:
| Period | Charge | Sequence | Interface Date | Bill-from Date | Bill-to Date | Amount | End of Full Period | Days in partial period | Total days in the period |
| 1 | Recurring Charge | 1 | 28-Jan-2020 | 28-Jan-2020 | 31-Mar-2020 | 2813.19 | 27-Apr-2020 | 64 | 91 |
| 2 | Recurring Charge | 2 | 01-Apr-2020 | 01-Apr-2020 | 30-Jun-2020 | 4000 | |||
| 3 | Recurring Charge | 3 | 01-Jul-2020 | 1-Jul-2020 | 30-Sep-2020 | 4000 | |||
| 4 | Recurring Charge | 4 | 01-Oct-2020 | 01-Oct-2020 | 31-Dec-2020 | 4000 | |||
| 5 | Recurring Charge | 5 | 01-Jan-2021 | 01-Jan-2021 | 27-Jan-2021 | 1200 | 31-Mar-2021 | 27 | 90 |