NextBillingDate -- Going from prorated annual plan -> prorated monthly plan
Hey guys-
We have a situation where we want to move users from an annual recurring plan to a monthly recurring plan. Both plans are marked as prorated plans.
How does your proration logic work in this case? In my tests, it appears that going from an annual prorated plan --> monthly prorated plan does not adjust the next billing date. Is that correct? I just need to know what the expected result is so that I can handle things appropriately on our end.
Thanks-
-Ka Wai
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1 Posted by Dean on 25 Sep, 2013 03:52 PM
Hi Ka Wai,
The downgrade should adjust the billing date time to be one month after the customer's signup. How would you like it to work? You can also use the API to override the bill date.
Best,
Dean
Support Staff 2 Posted by Marc Guyer on 25 Sep, 2013 07:11 PM
Right, assuming the plan that you're changing the subscription to is configured to prorate, an invoice is executed on plan change. The prorated invoice will contain a credit for the remaining portion of the year. Assuming that credit is greater than the monthly fee, the executed invoice will be for $0 and the remaining credit will be carried to the next invoice which will have a bill date of 1 month later. The remaining credit will be carried forward until it's used up.
Jess Pendley closed this discussion on 21 Nov, 2013 07:50 PM.