Scenario 1. Downgrading a Resource

This is one of the scenarios in which a customer downgrades one of the services they use and the system delays the processing of the downgrade order until the next billing date to gather the necessary usage statistics and issue an invoice that will not need future corrections. The capability to delay the processing of such orders is configurable. For more detail see Configuring Delayed Processing of Orders with Downgrade Items. For the full list of such scenarios see List of Delayed Downgrade Scenarios and How Subscriptions and Delayed Orders Are Affected.

Note: This scenario is valid for all the available billing models in Billing: Charge Before Subscription Period, Charge Before Billing Period, and Charge After Billing Period. For more information see Billing Models. The example below is for the Charge Before Billing Period billing model.

This is an example of the Downgrading Resource scenario, where you place a change order only to downgrade some resource and do not upgrade or purchase any other resource in the same order.

Preconditions:

1. Enable the Delayed Downgrade feature. For more detail see Configuring Delayed Processing of Downgrade Orders.
2. Configure a service plan as follows:
   • Setup fee: $0
   • Recurring fees: $5 recurring fee for the subscription, $10 per month for the resources.
3. Create an active subscription for a customer with the following characteristics:
   • Billing Model: Charge Before Billing Period
   • Subscription period: 1 year
   • Billing period: 1 month
   • Recurring fee: $5 per month
   • Additional resources: $10 * 5 additional resources = $50 per month.

Assumptions:

There are no open Change Orders placed for the subscription.

Scenario:

1. The customer places a change order to downgrade the additional resources by 2 items (from 5 to 3). Order Total = $0.00.
2. The order contains downgrade order details. The order receives the Scheduled status and will be processed on the next billing date. From the next billing date there will be only 3 additional resources in the subscription instead of the original 5 resources.