This supports prorating for products with a dynamic (sliding scale) price. This lets you account for mid-period changes and prorate the charge for a product based on the active features throughout the month. For example, you can dynamically calculate in arrears the charge for a data package where the price is based on the quantity of specific SKUs on an account across services. The calculation takes into account proration for adds and disconnects done throughout the bill period.
Billing
When a Prorated Product Charge is billed, the charge amount calculation is based on the quantity of active contributing products throughout the bill period (in arrears). The calculation does not support charging in advance.
The following rules apply:
The configured tiers in the Dynamic Charge configuration are used to determine the charge amount based on the quantity of contributing products for active features.
The start and end dates of the features are evaluated to determine the number of days for each applicable tier.
When more than one tier applies within the bill period, the tier amount is prorated based on the number of days it was applicable.
If the Prorated Product Charge is assigned at the service level, only features on the service are used for the charge calculation (consistent with existing Dynamic Charge functionality)
If the Prorated Product Charge is assigned at the account level, features on the account and all services are used for the charge calculation (consistent with existing Dynamic Charge functionality)
Example Tiers:
Quantity | Constant Amount |
|---|---|
1 | $55 |
2 | $100 |
3 | $110 |
4 | $120 |
Scenario 1: Three features are contributing products and active every day of the bill period.
Charge = $110
Scenario 2: Two contributing products are active every day of the bill period (tier amount = $100). A third product is added and active the last 10 days of the bill period (tier amount = $110). There are 30 days in the bill period.
Charge = (20/30 * $100) + (10/30 * $110) = $103.33
Scenario 3: Two contributing products are active at the beginning of the bill period. One is disconnected after 15 days. There are 31 days in the bill period.
Charge = (15/31 * $100) + (16/31 * $55) = $76.77
Scenario 4: Complex example of four features which are contributing products, active various days within a bill period:
Charge Calculation Breakout:
Days 1-7: Qty = 2
Days 8-9: Qty = 3
Days 10-12: Qty = 4
Days 13–20: Qty = 3
Days 21-30: Qty = 2
Qty 2 for 17 Days (17/30 * $100) = $56.6667
Qty 3 for 10 Days (10/30 * $110) = $36.6667
Qty 4 for 3 Days (3/30 * $120) = $12.00
Total Charge = $105.33
Invoice Preview in Customer Care
The Invoice Preview function in Customer Care (Billing > Invoices) lets service representatives review prorated dynamic charges with their customers and answer any questions they may have.
When a sale is made that impacts a Prorated Product Dynamic Charge, the invoice preview accounts for the sale when calculating the charge amount.
When a disconnect is done that impacts a Prorated Product Dynamic Charge, the invoice preview accounts for the disconnect when calculating the charge amount.
The dynamic charge amount is calculated based on the quantity of contributing products and their start and end dates at the time the invoice preview is generated.