Monthly Pay in full (free start). Charges generation

In this article:

General rules

The Monthly Pay in full (free start) billing type supposes that a customer always pays for the maximum quantity of the resources used during the billing period (month) as if the maximum quantity was used during the full month.

Subscriptions with the Monthly Pay in full (free start) billing type are provided with a free period with a duration of up to one month (to the next billing day):

• The free period starts from the date of the subscription ordering and ends on the next billing day.
• During the free period, switching the plan is not available.
• The availability of changing the quantity of resources during the free period depends on the service term, like for trial subscriptions with other billing types (see Creating a service term).

Plans with the Monthly Pay in full (free start) billing type have plan periods with a duration of 1 month.

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

The ordered subscription may generate the following charges 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 Monthly Pay in full (free start) billing type because corresponding fees are not applicable.

Recurring fee charges

Recurring fee charges for the service (resource) usage are generated for the full 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:

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

There are no charges for using the subscription during the free period.

The amounts of charges are always calculated for the full 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 Monthly Pay in full (free start) billing type is ordered, the following rules are applied:

1. No charges are generated.
2. The sales order is completed automatically, and the subscription expiration date is set to the next billing day.
3. The subscription is available for free until the next billing day.

Renewing a subscription

When the 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 full 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 full 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 full 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 in 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 in 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 in 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.