This article is mostly useful for CloudBlue Commerce support.
Charge Calculation Logic from the recurring_strategy Value Prospective
The charge calculation logic below is relevant when the settings in the Billing Terms tab of the service plan profile are set to their default values:
- Charges for limit changes
- Upsizing: Actual amount (prorated charges)
- Downsizing: Actual amount (prorated charges)
- Charges for service plan or subscription period changes
- Upgrading: Actual price (prorated charges)
- Downgrading: Actual price (prorated charges)
Charge calculation logic for changes to subscriptions to service plans with and without volume pricing is implemented through a calculated parameter (Enum), recurring_strategy, which can have one of these values:
-
prorate_only: when a resource quantity is changed, a single prorated charge is calculated: either an additional charge for upsize, or a refund for downsize.
-
refund_based: when a resource quantity is changed, three charges are calculated: the full refund for the current billing period, a prorated charge for the old quantity before the change, and a prorated charge for the new quantity for the billing period part after the change.
Note: This option is useful when implementing Microsoft's upsize/downsize and upgrade/downgrade policies.
Charge Calculation Logic from the Service Pricing Model Prospective (Volume Pricing On/Off)
When changes are made to a subscription - a resource quantity is changed (upsized or downsized) or the service plan or subscription period is switched (upgraded or downgraded) - applicable charges are calculated depending on the service type:
- For service plans with volume pricing: Recalculations are based on volume-based unit price changes.
- For other service plans: Recalculations are based on proration.
Note: In both cases, actual sales price changes are also a factor.
When a subscription is upsized (downsized) or upgraded (downgraded), Rating Engine calculates revenue in the following way depending on whether the service plan uses volume pricing:
- If the service plan uses volume pricing, recurring_strategy = refund_based for revenue calculation.
- If the service plan is not based on volume pricing:
- For revenue calculation: Rating Engine uses the default value defined by the defaultrecurringstrategy parameter in Rating Engine Helm values. If the defaultrecurringstrategy value is prorate_only (or null) or not defined, Rating Engine uses recurring_strategy = prorate_only.