When subscription is canceled, the cancellation charges are calculated automatically. The following amounts are taken into account for cancellation charge calculation:
- Refund amount.
- Cancellation fee. Defined per subscription period, it can be calculated using placeholders, which allows you to specify a cancellation fee according to actual amount paid by a customer and actual subscription period used and remaining.
- The fee for used part of subscription period.
Depending on the service provisioning terms, customer may be fully or partly refunded, or not refunded at all. In addition, provider can adjust the refund options on cancellation order placement stage.
In case a provider owes money to customer cancellation order is placed. Cancellation order is to be always released manually since no automated refunds are allowed. In case customer owes money to provider, the cancellation charge order is placed.
Generally, cancellation conditions and outcome depend on whether the subscription is canceled before or after the end of refund period.
Cancellation Order details
When calculating duration for recurring fee, Billing does not include the current day. With the duration for overusage the situation is quite the opposite: the current day is included. Described behavior applies to all orders generated for a part-time period (e.g., a partial month). Therefore, in a cancellation order (or switch order) details the duration shown for overusage is 1 day greater than the one shown for included and additional recurring amount.
Example: a subscription was purchased on 01.02.2014 at 23.00 and canceled on 02.02.2014 at 01.00. In the cancellation order the duration for recurring fee is 1 day, whereas overusage duration is calculated as 2 days.
To reimburse taxes on refunds, a calculation is made based on the tax rate used at the time that the service plan or resource was purchased.
For example, if an order is placed and invoiced at a 7% tax rate in 2022 and then it is canceled in 2023, year when the tax rate has been increased from 7% to 8%, the automated credit note will be generated at a 7% tax rate.
Note: The feature is disabled by default. To enable the feature, set FEA_REFUND_WITH_ORIGINAL_TAX feature to IsActive=1 in Features table of PBA database.