License-based (Monthly). Charges generation

In this article:

General rules for the License-based (Monthly) billing type

The License-based (Monthly) billing type supposes that a customer always pays for the maximum quantity of resources used during the billing period (month) as if the maximum quantity was used during the whole month. For the period from the purchase day to the next billing day, the customer pays as for a full month.

Plans with the License-based (Monthly) billing type have plan periods with a duration of 1 month.

The billing day must be set in the account class as the first day of the month (see Creating a service term).

The ordered subscription may generate the following charge types:

• Recurring fee for the subscription resources (see Charges attributes) when the resources are not included in the plan price.
• Recurring fee for the subscription when the resources are included in the price of the plan.

There are no Setup fee, Renewal fee, and Transfer fee charges for the subscriptions with the License-based (Monthly) billing type because corresponding fees are not applicable.

Recurring fee charges

Recurring fee charges for the service (resource) usage are generated for the whole period of the subscription (1 month) for each resource type and the subscription usage, if the corresponding fee is applicable. Charges are created with the following attributes:

• Status: New.
• Period: 1 month.
• Created at: the order creation date.
• Close date: the end date of the charge period.
• Amount: the monthly fee for one unit of resource usage multiplied by the quantity of the ordered (included) resource units.

The amounts of charges are always calculated for the whole billing period and based on the maximum quantity of the resources used during the current billing period.

Ordering a subscription

When a new subscription with the License-based (Monthly) billing type is ordered, the following rules are applied:

1. A charge is generated for the period from the start date of the current billing period to the start date of the next billing period and gets the Open status.
2. The subscription expiration date is set to the next billing day.
3. After completing the payment, the charge gets the Blocked status. The funds are blocked on the account balance.
4. If the payment is completed after the payment creation day, the charge and the subscription expiration date are not changed.

On the next billing day:

1. The charge gets the Closed status.
2. The funds are withdrawn from the account balance.
3. The subscription stops.

Renewing a subscription

When a subscription renewal order is created (see Delayed renewing of a subscription), the Recurring fee charges for the subscription renewal and for the additional (included) resources renewal are generated for the whole period of the subscription as it described in the Recurring fee charges section.

The subscription expiration date is set to the next billing day.

Upgrading resources

When additional resources are ordered, the Recurring fee charges for the resources usage are generated.

Recurring fee charges for each resource type are generated by the following rules:

1. Each new order for the resource quantity increasing generates new charges.
2. Regardless of the date of order creation, the charge for the current billing period is created for the whole billing period duration, in which resource quantity is increased.
3. The charge is created in the New status and gets the Blocked status after the order is paid.

Downgrading resources

When the additional resource quantity of the subscription is reduced, the charge for the current billing period is not changed.

Manual stopping and activating a subscription

When the subscription is stopped and then is re-activated, the following rules are applied:

1. If the subscription was stopped on the first day of the current billing period, then the charge for the current billing period changes its status from Blocked to Opened. The account gets the refund to the account balance.
2. If the subscription was stopped on any other day of the current billing period, then the charge for the current period stays in the Blocked status and is closed on the nearest billing day.
3. When the subscription is re-activated, the charge for the period, in which the re-activation happened, receives the Blocked status and is closed on the nearest billing day.
4. If the subscription was inactive during the whole billing period, then the charges in the Opened status for this billing period are deleted.

Switching the subscription plan

Only the immediate switch is available (see Switching a plan).

Switching the subscription plan within the same product

When the subscription plan is switching to a plan of the same product, the following rules are applied:

1. If the ordered or the included quantity of the resource in the new plan is greater than in the old one, then:
   1. The charge for the current billing period of the old plan with the Blocked status is deleted.
   2. The new charge for the old plan for the current billing period is created with the Refunded status. The account balance is increased by the charge amount.
   3. The new charge for the current billing period is created with the Blocked status. The amount of the charge is blocked at the account balance.
2. If the ordered or the included quantity of the resource in the new plan is less than in the old one, then the charge for the current billing period of the old plan with the Blocked status isn't changed.

Switching the subscription plan to a plan of other product

When the subscription plan is changed to the plan of the other product, regardless of the resource quantity in the new plan compared to the previous one, the generation and the changing of the charges attributes is performed as in the case, when the subscription plan is changed to the plan of the same product with the greater resource quantity.

Deleting a subscription

When a subscription is deleted, the following rules are applied:

1. If the subscription was deleted on the first day of the current billing period, then the charge for the current billing period changes its status from Blocked to Deleted. The account gets the refund to the account balance.
2. If the subscription was deleted on any other day of the current billing period, then the charge for the current period changes its status from Blocked to Closed. The charge amount is debited from the account balance.