License-based Products

Overview

This document guides you on creating and managing custom service license-based products and add-ons.

It covers the steps to set up new products, how to configure their details, and how to manage them over time.

It also goes into detail about the different billing logic setup, with detailed examples and calculations.

Steps Involved in Creating a License-Based Products

Log in to your seller account.
Navigate to Services > Custom Services.
Create a new service (or) if you chose a pre-existing service, navigate to Actions > Products.
Click on Create.
Fill in the details about the product. To add a license-based product, it is essential to select Recurring subscription as the product type and License-based as the billing model.
Select the suitable billing option from the choices provided.
Once all the fields are filled, click on Create to add the product to your portfolio.

Detailed Explanation of Billing

Important Terminology

First Partial Cycle: The first partial cycle refers to the initial period of a subscription that doesn't cover a full billing cycle. For example, if a subscription starts in the middle of a billing month, the days from the start date of the subscription to the next billing date make up the first partial cycle.

Billing Logic: This explains how the billing will be calculated.
1. Billing Day Only: Billing lines will be created only on the service billing date for the upcoming cycle, based on the "Billing day of the month" chosen for the service this product is part of.
2. Pro-rated Billing: Billing lines would be generated depending on the number of days the subscription or add-on was active. In addition, when a subscription is canceled or add-ons are removed, refunds will be issued for the unused days. If the subscription or add-on quantity changes, a pro-rated charge or refund will be applied.
First Billing Period: This explains how billing is calculated for the initial partial period when a subscription starts.
1. No Billing: No billing will be generated for the first partial cycle, and enabling add-ons won't create any charges.
2. Pro-rated Billing: Billing for the first partial cycle will be calculated proportionally based on the number of days the subscription or add-on was active.
3. Full Billing Cycle: Billing for the first partial cycle will be applied for the entire billing cycle. Adding extra add-ons will also result in full-cycle billing for each add-on. Billing will cover the entire cycle, regardless of how many days the service was active before the first billing day.

Starting period billing:

CODE

Current period total days = (next billing date) - (previous billing date)
Discounted days = (subscription creation date) - (previous billing date)
Pro-rated days = (current period total days) - (discounted days)
Billing for 1st period = ((pro-dated days) / (total period days)) * (billing cycle total sales price)

Pro-Rated Refunds When Subscription is Deleted

1. Monthly billing, Delete immediately mid-period

Example: For a monthly subscription with a monthly billing cycle starting on the 25th of each month and a sales price of 100 €/month, the subscription is created on February 25th. On June 25th, the subscription is billed upfront for 100 €. On July 13th, the subscription is cancelled and deleted mid-period, and a proportional refund billing line is generated for the last period.

Timeline and calculations:

CODE

Monthly subscription period
Monthly billing cycle
Billing day: 25
Sales price: 100 €/mo
Product Cancel Action: Delete immediately
25.02: Subscription is created
25.06: Subscription is billed upfront for 100 €
13.07: Subscription is cancelled & deleted mid-period
13.07: Proportional refund billing line is generated for the last period

CODE

Refund amount: 
  Refund period start = 13.07
  Refund period end = 25.07
  Refund days = (25.07) - (13.07) = 12
  Current period total days = (25.07) - (25.06) = 30
  Refund amount = 12 / 30 * 100 * (-1) = -40 €

2. Monthly billing, Delete at the end of subscription period, Billing day matches sub created day

Example: For a monthly subscription with a monthly billing cycle starting on the 25th of each month and a sales price of 100 €/month, the subscription is created on February 25th. On June 25th, the subscription is billed upfront for 100 €. On July 13th, the subscription is cancelled, and on July 25th, the subscription is deleted as the current monthly subscription period ends. A proportional refund billing line is generated for the last period.

Timeline and calculations:

CODE

Monthly subscription period
Monthly billing cycle
Billing day: 25
Sales price: 100 €/mo
Product Cancel Action: Delete at the end of the subscription period
25.02: Subscription is created
25.06: Subscription is billed upfront for 100 €
13.07: Subscription is cancelled
25.07: Subscription is deleted (current monthly sub period ended)
25.07: Proportional refund billing line is generated for the last period

CODE

Refund amount: 
  Refund period start = 25.07
  Refund period end = 25.07 (same day included)
  Refund days = (25.07) - (25.07) = 0
  Current period total days = (25.07) - (25.06) = 30
  Refund amount = 0 / 30 * 100 * (-1) = 0 €

3. Monthly billing, Delete at the end of sub period, billing day different than sub end date

Example: For a monthly subscription with a monthly billing cycle starting on the 5th of each month and a sales price of 100 €/month, the subscription is created on February 25th. On July 5th, the subscription is billed upfront for 100 €. On July 13th, the subscription is cancelled, and on July 25th, the subscription is deleted. A proportional refund billing line is generated for the last period.

Timeline and calculations:

CODE

Monthly subscription period
Monthly billing cycle
Billing day: 5
Sales price: 100 €/mo
Product Cancel Action: Delete at the end of the subscription period
25.02: Subscription is created
05.07: Subscription is billed upfront for 100 €
13.07: Subscription is cancelled
25.07: Subscription is deleted
25.07: Proportional refund billing line is generated for the last period

CODE

Refund amount: 
  Refund period start = 25.07
  Refund end date = 05.08
  Refund days = (05.08) - (25.07) = 11
  Billing period total days = (05.08) - (05.07) = 31
  Refund amount = 11 / 31 * 100 * (-1) = -35.48 €

4. Monthly billing, Delete immediately, Cancelled on the same day when created

Example: For a monthly subscription with a monthly billing cycle starting on the 5th of each month and a sales price of 100 €/month, the subscription is created on February 25th. On the same day, an initial partial period billing line for 28.57 € is generated. The subscription is then cancelled and deleted on the same day, and a refund billing line for -28.57 € is generated.

Timeline and calculations:

CODE

Monthly subscription period
Monthly billing cycle
Billing day: 5
Sales price: 100 €/mo
Product Cancel Action: Delete immediately
25.02: Subscription is created
25.02: Initial partial period billing line for 28.57 €
25.02: Subscription is cancelled & deleted
25.02: Refund billing line is generated for -28.57 €

CODE

Refund amount: 
  Refund period start = 25.02
  Refund period end = 05.03
  Refund days = (05.03) - (25.02) = 8
  Current period total days = (05.03) - (05.02) = 28
  Refund amount = 8 / 28 * 100 * (-1) = -28.57 €

5. Annual Subscription, Quarterly Billing Cycle, Delayed deletion

Example: For an annual subscription with a quarterly billing cycle starting on the 1st of each quarter and a sales price of 1000 €/quarter, the subscription is created on February 15th. On the same day, the proportional price for the initial period is calculated and billed upfront. Regular full period billing is generated and billed upfront on March 1st and June 1st. On June 5th, the subscription is cancelled and scheduled for deletion after 45 days. On July 20th, the subscription is deleted, and a proportional refund billing line is generated.

Timeline and calculations:

CODE

Annual subscription period
Quarterly billing cycle
Billing day: 1
Sales price: 1000 €/quarter
Product Cancel Action: Delete After 45 Days
15.02: Subscription is created
15.02: Proportional price for the 1st period is calculated and billed upfront
01.03: Regular full period billing is generated and billed upfront
01.06: Regular full period billing is generated and billed upfront
05.06: Subscription Cancelled, Scheduled for deletion after 45 days
20.07: Subscription Deleted
20.07: Proportional refund billing line is generated

CODE

Starting period billing calculation: 
  Previous billing day = 01.12.2025 (because quarterly)
  Current period total days = (01.03.2026) - (01.12.2025) = 90 
  Discounted days = (15.02.2026) - (01.12.2025) = 76
  Pro-rated days = 90 - 76 = 14
  Billing for 1st period = 14/90 * 1000 =~ 155.56 €

Refund amount: 
  Refund period start = 20.07
  Refund period end = 01.09
  Refund days = (01.09) - (20.07) = 43
  Current period total days = (01.06) - (01.09) = 92
  Refund amount = 43 / 92 * 1000 * (-1) = -467.39 €

6. Annual subscription, Annual billing, Delete immediately

Example: For an annual subscription with an annual billing cycle starting on the 10th of each year and a sales price of 5000 €/year, the subscription is created on January 20, 2025, with an ending date of January 20, 2026. On the same day, the proportional price for the initial period is calculated and billed upfront. On February 10, the regular full-period billing is generated, assuming the subscription is renewed automatically. On September 23, the subscription is canceled and deleted immediately, and a proportional refund for the rest of the billing cycle that was already charged is generated.

Timeline and calculations:

CODE

Annual subscription period
Annual billing cycle
Billing day: 10
Sales price: 5000 €/year
Product Cancel Action: Delete immediately
20.01.2025: Subscription is created (Subscription ending date: 20.01.2026)
20.01: Proportional price for the 1st period is calculated and billed upfront
10.02: Regular full period billing is generated, even though the subscription end will be within the billing cycle. We will assume the subscription is being renewed autiomatically
23.09: Subscription is cancelled & deleted immediately
23.09: Proportional refund for the rest of the billing cycle that was already charged for.

CODE

Refund amount: 
  Refund period start = 23.09.2025
  Refund period end = 10.02.2026
  Refund days = (10.02.2026) - (23.09.2025) = 140
  Current period total days = (20.01.2026) - (10.02.2025) = 344
  Refund amount = 140 / 344 * 5000 * (-1) = -2034.88 €

7. Annual subscription, Quarterly billing, Cancelled during Trial, delayed deletion

Example: For an annual subscription with a quarterly billing cycle starting on the 1st of each quarter and a sales price of 1000 €/quarter, the subscription is created on February 15th with a 30-day trial, during which no billing occurs. On February 25th, the subscription is cancelled during the trial period. On March 17th, the subscription is started, and partial billing is generated for the first period. On March 27th, the subscription is deleted, and a refund billing line is generated.

Timeline and calculations:

CODE

Annual subscription period
Quarterly billing cycle
Product Cancel Action: Delete after 30 days
Billing day: 1
Sales price: 1000 €/quarter
15.02: Subscription is created with a 30-day trial, no billing happens
25.02: Subscription cancelled during trial
17.03: Subscription is started and partial billing is generated for the 1st period
27.03: Subscription deleted
27.03: Refund billing line generated

CODE

Starting period billing calculation: 
  Previous billing day = 01.01.2025 (because trial pushed it forward for 30 days)
  Current period total days = (01.04.2026) - (01.01.2026) = 90 
  Discounted days = (17.03.2026) - (01.01.2026) = 75
  Pro-rated days = 90 - 75 = 15
  Billing for 1st period = 15/90 * 1000 =~ 166.67 €
Refund amount: 
  Refund period start = 27.03
  Refund period end = 01.04
  Refund days = (01.04) - (27.03) = 5
  Current period total days = (01.04) - (01.01) = 90
  Refund amount = 5 / 90 * 1000 * (-1) = -55.56 €

8. Monthly Subscription, Monthly Billing Cycle, Add-on enabled & disabled later

Example: For a monthly subscription with a billing cycle starting on the 25th of each month, a sales price of 100 €/month, and an add-on price of 20 €/month, the subscription is created on February 20th. On the same day, the proportional price for the initial period is calculated and billed upfront. On February 25th, the regular subscription full period billing is generated and billed upfront. This regular billing continues on March 25th and April 25th. On May 12th, the add-on is enabled, and proportional billing is generated for the partial period. On May 25th and June 25th, the regular subscription full period billing is generated and billed upfront. On July 17th, the add-on is disabled, and a proportional refund billing line is generated. On July 25th, the regular subscription full period billing is generated and billed upfront.

Timeline and calculations:

CODE

Billing day: 25
Sales price: 100 €/mo
Add-on price: 20 €/mo
20.02: Subscription is created
20.02: Proportional price for the 1st period is calculated and billed upfront
25.02: Regular subscription full period billing is generated and billed upfront
25.03: Regular subscription full period billing is generated and billed upfront
25.04: Regular subscription full period billing is generated and billed upfront
12.05: Add-on enabled, proportial billing is generated for the partial period
25.05: Regular subscription full period billing is generated and billed upfront
25.06: Regular subscription full period billing is generated and billed upfront
17.07: Add-on disabled, proportional refund billing lines is generated
25.07: Regular subscription full period billing is generated and billed upfront

CODE

Add-on enabled calculation:
  Previous billing day (for ongoing period) = 25.04.2025
  Current period total days = (25.05.2025) - (25.04.2025) = 30
  Discounted days = (12.05.2025) - (25.04.2025) = 17
  Pro-rated days = 30 - 17 = 13
  Billing for add-on enabled = 13/30 * 20 =~ 8.67 €

Add-on disabled calculation:
  Refund period start = 17.07
  Refund period end = 25.07
  Refund days = (25.07) - (17.07) = 8
  Current period total days = (25.07) - (25.06) = 30
  Add-on refund amount = 8/30 * 20 * (-1) = -5.33 €

9. Annual subscription, Quarterly billing, Delete immediately, Add-on enabled then deleted

Example: For an annual subscription with a quarterly billing cycle starting on the 1st of each quarter, a sales price of 1000 €/quarter, and an add-on price of 400 €/quarter, the subscription is created on February 15th. On the same day, the proportional price for the initial period is calculated and billed upfront. On March 1st, the regular full period billing is generated and billed upfront. On April 24th, the add-on is enabled, and proportional billing is generated for the partial period. On June 1st, the regular full period billing is generated for both the subscription and the add-on, and both are billed upfront. On July 20th, the subscription is deleted while the add-on is enabled, and separate refund billing lines are generated for the subscription and the add-on.

Timeline and calculations:

CODE

Annual subscription period
Quarterly billing cycle
Billing day: 1
Sales price: 1000 €/quarter
Add-on price: 400 €/quarter
Product Cancel Action: Delete immediately
15.02: Subscription is created
15.02: Proportional price for the 1st period is calculated and billed upfront
01.03: Regular full period billing is generated and billed upfront
24.04: Add-on enabled, proportional billing is generated for the partial period
01.06: Regular full period billing is generated for the subscription & the add-on, both billed upfront
20.07: Subscription Deleted while add-on was enabled. Generate separate refund billing lines for the subscription & the add-on

CODE

Add-on enabled calculation:
  Previous billing day (for ongoing period) = 1.03.2025
  Current period total days = (01.06.2025) - (01.03.2025) = 92
  Discounted days = (24.04) - (01.03) = 54
  Pro-rated days = 92 - 54 = 38
  Billing for add-on enabled = 38/92 * 400 =~ 165.22 €

Subscription refund amount: 
  Refund period start = 20.07
  Refund period end = 01.09
  Refund days = (01.09) - (20.07) = 43
  Current period total days = (01.09) - (01.06) = 92
  Refund amount = 43 / 92 * 1000 * (-1) = -467.39 €

Add-on disabled calculation:
  Refund period start = 20.07
  Refund period end = 01.09
  Refund days = (01.09) - (20.07) = 43
  Current period total days = (01.09) - (01.06) = 92
  Add-on refund amount = 43/92 * 400 * (-1) = -186.96 €

10. Bi-annual subscription, Bi-annual billing, Delete immediately, Add-on enabled before deletion

Example: For a bi-annual subscription with a bi-annual billing cycle starting on the 10th of each period, a sales price of 2000 €/biannually, and an add-on price of 600 €/biannually, the subscription is created on February 5th. On the same day, the proportional price for the initial period is calculated and billed upfront. On February 10th, the regular full period billing is generated and billed upfront. On May 10th, the subscription period ends and renews automatically, with no billing generated. On August 10th, the regular full period billing is generated and billed upfront. On November 11th, the add-on is enabled, and a proportional billing line is generated and billed upfront. On December 31st, the subscription is deleted while the add-on is enabled, and proportional refund billing lines are generated for both the subscription and the add-on.

Timeline and calculations:

CODE

Bi-annual subscription period
Bi-annual billing cycle
Billing day: 10
Sales price: 2000 €/biannually
Add-on price: 600 €/biannually
Product Cancel Action: Delete immediately
05.02: Subscription is created
05.02: Proportional price for the 1st period is calculated and billed upfront
10.02: Regular full period billing is generated and billed upfront
10.05: Subscription period ends & renews automatically. No billing is generated. 
10.08: Regular full period billing is generated and billed upfront
11.11: Add-on enable, proportial billing line is generated and billed upfront
31.12: Subscription Deleted while add-on was enabled. Generate proportional refund billing lines for the subscription & the add-on

11. Quarterly Subscription, Quarterly Billing Cycle, Delete after sub renewal and before next billing

Example: The quarterly subscription period involves a billing cycle where charges are applied every quarter, with the billing day set on the 1st of each quarter. The sales price is 1000 € per quarter, and if the subscription is canceled, it is deleted immediately. The subscription is created on 15.02, with the proportional price for the first period calculated and billed upfront. Regular full period billing is generated and billed upfront on 01.03 and 01.06. On 15.08, the subscription end date is reached, and the subscription period is renewed without any billing. Finally, on 20.08, the subscription is deleted, and a proportional refund is generated for the period that was already billed for. This setup ensures efficient billing and prompt processing of refunds upon cancellation.

Timeline and calculations:

CODE

Quarterly subscription period
Quarterly billing cycle
Billing day: 1
Sales price: 1000 €/quarter
Product Cancel Action: Delete immediately
15.02: Subscription is created
15.02: Proportional price for the 1st period is calculated and billed upfront
01.03: Regular full period billing is generated and billed upfront
01.06: Regular full period billing is generated and billed upfront
15.08: Subscription end date is reached, subscription period is renewed, no billing happens
20.08: Subscription Deleted, generate proportional refund for the period that was already billed for

CODE

Subscription refund amount: 
  Refund period start = 20.08 (deletion date used (because MIN), since new sub ending date is now 15.11 (15.08+1quarter))
  Refund period end = 01.09
  Refund days = (01.09) - (20.08) = 12
  Current period total days = (01.09) - (01.06) = 92
  Refund amount = 12 / 92 * 1000 * (-1) = -130.43 €

12. Annual subscription, Renewal Changes Product to Monthly

Example: The subscription setup involves two products with distinct billing cycles. Product 1 has an annual subscription period with billing on the 15th of each year, priced at 4000 €/year. Upon cancellation, Product 1 renews to Product 2. Product 2 has a monthly subscription period with billing on the 15th of each month, priced at 400 €/month, and is deleted at the end of the subscription period upon cancellation. The subscription for Product 1 is created on 14.01.2025, ending on 14.01.2026, with the proportional price for the first period (1 day) billed upfront. Regular full period billing for Product 1 is generated on 15.01.2025. On 14.01.2026, the subscription period for Product 1 ends and renews to Product 2, generating a partial refund billing line since the annual billing was until 15.01.2026, but the subscription ended 1 day earlier. The proportional price for the first period (1 day) of Product 2 is billed upfront. Regular full period billing for Product 2 is generated on 15.01.2026, 15.02.2026, and 15.03.2026. The Product 2 subscription is canceled on 20.03.2026 and deleted on 14.04.2026, with a partial refund billing line generated. This setup ensures efficient billing and prompt processing of refunds upon cancellation.

Timeline and calculations:

CODE

Billing day: 15
Product 1: 
Annual subscription period
Annual billing cycle
Sales price: 4000 €/year
Product Cancel Action: Renew to Product 2
Product 2: 
Monthly subscription period
Monthly billing cycle
Sales price: 400 €/month
Product Cancel Action: Delete at the end of the subscription period
14.01.2025: Subscription is created (Subscription ending date: 14.01.2026)
14.01.2025: Proportional price for the 1st period is calculated and billed upfront (for 1 day, until the regular billing date)
15.01.2025: Regular full period billing is generated, even though the subscription end will be within the billing cycle. We will assume the subscription is being renewed autiomatically
14.01.2026: Subscription period ended and the product was renewed to Product 2. 
14.01.2026: Partial refund billing line was generated, since the annual billing was until 15.01.2026, so subscription ended 1 day earlier. 
14.01.2026: Product 2 proportional price for the 1st period is calculated and billed upfront (for 1 day, until the regular billing date)
15.01.2026: Regular full period billing is generated for Product 2
15.02.2026: Regular full period billing is generated for Product 2
15.03.2026: Regular full period billing is generated for Product 2
20.03.2026: Product 2 subscription cancelled
14.04.2026: Product 2 subscription deleted & partial refund billing line generated

CODE

Product 1 initial billing
  Current period total days = (15.01.2025) - (15.01.2024) = 366
  Discounted days = (14.01.2025) - (15.01.2024) = 365
  Pro-rated days = 366 - 365 = 1
  Billing for 1st period = 1/366 * 4000 = 10.93 €

Product 1 regular billing 1
  Annual total billing = 4000 €

Product 1 refund when subscription renewed
  Refund period start = 14.01.2026
  Refund period end = 15.01.2026
  Refund days = (15.01.2026) - (14.01.2026) = 1
  Current period total days = (15.01.2026) - (15.01.2025) = 365
  Refund amount = 1 / 365 * 4000 * (-1) = -10.96 €

CODE

Product 2 initial billing
  Current period total days = (15.01.2026) - (15.12.2026) = 31  <- Previous billing date 15.12.2026, since we treat it as a new monthly subscription, without looking at the annual billing cycle
  Discounted days = (14.01.2026) - (15.12.2026) = 30 
  Pro-rated days = 31 - 30 = 1
  Billing for 1st period = 1 / 31 * 400 = 12.90 €

Product 2 regular billing
  Monthly total billing = 400 €

Product 2 refund when cancelled & deleted at the end of the sub period
  Refund period start = 14.04.2026
  Refund period end = 15.04.2026
  Refund days = (15.04.2026) - (14.04.2026) = 1
  Refund amount = 1 / 31 * 400 * (-1) = -12.90 €

Pro-Rated Billing Lines When Subscription Quantity is Changed

1. Monthly billing, Quantity increased mid-period

Example: For a monthly subscription with a billing cycle starting on the 25th of each month and a sales price of 100 €/month, the subscription is created on February 25th with a quantity of 1. On June 25th, the subscription is billed upfront for 100 €. On July 13th, the subscription quantity is increased to 2, generating a proportional extra billing line.

Timeline and calculations:

CODE

Monthly subscription period
Monthly billing cycle
Billing day: 25
Sales price: 100 €/mo
25.02: Subscription is created with qty 1
25.06: Subscription is billed upfront for 100 €
13.07: Subscription qty is increased to 2
13.07: Proportional extra billing line is generated

CODE

New qty days = (25.07) - (13.07) = 12
Current period total days = (25.07) - (25.06) = 30
Quantity change = 2 - 1 = 1
Billing line = 12 / 30 * 100 * 1 = 40 €

2. Quarterly billing, Quantity decreased mid-period

Example: For a quarterly subscription with a billing cycle starting on the 25th of each quarter and a sales price of 400 €/quarter, the subscription is created on February 25th with a quantity of 3. On the same day, the subscription is billed upfront for 1200 €. This regular billing continues on May 25th, with another upfront billing of 1200 €. On July 13th, the subscription quantity is decreased to 2, generating a proportional extra billing line.

Timeline and calculations:

CODE

Quarterly subscription period
Quarterly billing cycle
Billing day: 25
Sales price: 400 €/quarter
25.02: Subscription is created with qty 3
25.02: Subscription is billed upfront for 1200 €
25.05: Subscription is billed upfront for 1200 €
13.07: Subscription qty is decreased to 2
13.07: Proportional extra billing line is generated

CODE

New qty days = (25.08) - (13.07) = 43
Current period total days = (25.08) - (25.05) = 92
Quantity change = 2 - 3 = -1
Billing line = 43 / 92 * 400 * (-1) = -186.96 €

3. Monthly billing, Quantity Change Each Billing Cycle

Example: For an annual subscription with a monthly billing cycle starting on the 25th of each month and a sales price of 5 €/month, the subscription is created on February 15th with a quantity of 120. On the same day, the proportional price for the initial period (from February 15th to February 25th) is calculated and billed upfront for 193.55 €. On February 25th, the subscription is billed upfront for 600 €. On March 13th, the subscription quantity is increased to 150, and a proportional extra billing line is generated for 64.29 €. On March 25th, the normal monthly billing for 150 quantities is 750 €. On April 8th, the subscription quantity is increased to 430, and a proportional extra billing line is generated for 767.96 €. On April 25th, the normal monthly billing for 430 quantity is 2150 €. On May 5th, the subscription quantity is increased to 670, and a proportional extra billing line is generated for 800 €. On May 25th, the normal monthly billing for 670 quantity is 3350 €. This continues on June 25th with another billing of 3350 €. On July 20th, the subscription quantity is decreased to 500, and a proportional extra billing line is generated for -141.67 €.

Timeline and calculations:

CODE

Annual subscription period
Monthly billing cycle
Billing day: 25
Sales price: 5 €/mo
15.02: Subscription is created with qty 120 
15.02: Subscription is billed upfront for: 10/31 * 5 € * 120 = +193.55 €
25.02: Subscription is billed upfront for: 120 * 5 € = 600 €
13.03: Subscription qty is increased to 150
13.03: Proportional extra billing line is generated for +64.29 €
25.03: Normal Monthly billing for 150 qty: 150 * 5 € = 750 €
08.04: Subscription qty is increased to 430
08.04: Proportional extra billing line is generated for +767.96 €
25.04: Normal Monthly billing for 430 qty: 430 * 5 € = 2150 €
05.05: Subscription qty is increased to 670
05.05: Proportional extra billing line is generated for +800 €
25.05: Normal Monthly billing for 670 qty: 670 * 5 € = 3350 €
25.06: Normal Monthly billing for 670 qty: 670 * 5 € = 3350 €
20.07: Subscription qty is decreased to 500
20.07: Proportional extra billing line is generated for -141.67 €

CODE

Billing line 1 calculation: 
  New qty days = (25.03) - (13.03) = 12
  Current period total days = (25.03) - (25.02) = 28
  Quantity change = 150 - 120 = 30
  Billing line = 12 / 28 * 5 * 30 = 64.29 €
Billing line 2 calculation: 
  New qty days = (25.04) - (8.04) = 17
  Current period total days = (25.04) - (25.03) = 31
  Quantity change = 430 - 150 = 280
  Billing line = 17 / 31 * 5 * 280 = 767.95 €
Billing line 3 calculation: 
  New qty days = (25.05) - (05.05) = 20
  Current period total days = (25.05) - (25.04) = 30
  Quantity change = 670 - 430 = 240
  Billing line = 20 / 30 * 5 * 240 = 800 €
Billing line 4 calculation: 
  New qty days = (25.07) - (20.07) = 5
  Current period total days = (25.07) - (25.06) = 30
  Quantity change = 500 - 670 = -170
  Billing line = 5 / 30 * 5 * (-170) = -141.67 €

4. Annual billing, Prices Changed Several Times During the Billing Cycle

Example: For an annual subscription with an annual billing cycle starting on the 10th of each year and a sales price of 5000 €/year, the subscription is created on January 20th with a quantity of 1. On February 10th, the subscription is billed upfront for 5000 €. On April 15th, the subscription quantity is increased to 3, and a proportional extra billing line is generated for 8246.58 €. On July 23rd, the subscription quantity is decreased to 2, and a proportional extra billing line is generated for -2676.12 €. On October 4th, the subscription quantity is increased to 5, and a proportional extra billing line is generated for 5301.37 €. On January 1st, the subscription quantity is decreased to 1, and a proportional extra billing line is generated for -2191.78 €.

Timeline and calculations:

CODE

Annual subscription period
Annual billing cycle
Billing day: 10
Sales price: 5000 €/year
20.01: Subscription is created with qty 1
10.02: Subscription is billed upfront for qty 1: 5000€
15.04: Subscription qty is increased to 3
15.04: Proportional extra billing line is generated for +8246.58 €
23.07: Subscription qty is decreased to 2
23.07: Proportional extra billing line is generated for -2676.12 €
04.10: Subscription qty is increased to 5
04.10: Proportional extra billing line is generated for +5301.37 €
01.01: Subscription qty is decreased to 1
01.01: Proportional extra billing line is generated for -2191.78 €

CODE

Billing line 1 calculation: 
  New qty days = (10.02.2026) - (15.04.2025) = 301
  Current period total days = (10.02.2026) - (10.02.2025) = 365
  Quantity change = 3 - 1 = 2
  Billing line = 301 / 365 * 5000 * 2 = 8246.58 €
Billing line 2 calculation: 
  New qty days = (10.02.2026) - (23.07.2025) = 202
  Current period total days = (10.02.2026) - (10.02.2025) = 365
  Quantity change = 2 - 3 = -1
  Billing line = 202 / 365 * 5000 * (-1) = -2767.12 €
Billing line 3 calculation: 
  New qty days = (10.02.2026) - (04.10.2025) = 129
  Current period total days = (10.02.2026) - (10.02.2025) = 365
  Quantity change = 5 - 2 = 3
  Billing line = 129 / 365 * 5000 * 3 = 5301.37 €
Billing line 4 calculation: 
  New qty days = (10.02.2026) - (01.01.2026) = 40
  Current period total days = (10.02.2026) - (10.02.2025) = 365
  Quantity change = 1 - 5 = -4
  Billing line = 40 / 365 * 5000 * (-4) = -2191.78 €

5. Monthly billing, Product, and Add-on Qty Changed During a Subscription Edit

Example: For a monthly subscription with a quarterly billing cycle starting on the 15th of each quarter a product sales price of 44 €/month and an add-on sales price of 22 €/month, the subscription is created on February 25th with a product quantity of 1 and add-on quantity of 1. On the same day, the subscription is billed upfront for the product quantity of 1 for 28.29 € and the add-on quantity of 1 for 14.14 €. On March 15th, the normal billing for the product quantity of 1 and add-on quantity of 1 occurs. On April 1st, the product quantity is increased to 2 and billed for 19.87 €, and the add-on quantity is increased to 5 and billed for 39.74 €. On April 15th and May 15th, the normal billing for the product quantity of 2 and add-on quantity of 5 occurs. On June 3rd, the product quantity is increased to 4 and billed for 34.06 €, and the add-on quantity is decreased to 3 and billed for -17.03 €. On June 15th and July 15th, the normal billing for the product quantity of 4 and add-on quantity of 3 occurs. On July 30th, the product quantity is decreased to 3 and billed for -22.71 €, and on August 3rd, the add-on quantity is increased to 6 and billed for 21.29 €. On August 15th, the normal billing for the product quantity of 3 and add-on quantity of 6 occurs.

Timeline and calculations:

CODE

Monthly subscription period
Quarterly billing cycle
Billing day: 15
Product Sales price: 44 €/month
Add-on Sales price: 22 €/month
25.02: Subscription is created with product qty 1 and add-on qty 1
25.02: Subscription is billed upfront product qty 1 for 28.29 €
25.02: Subscription is billed upfront add-on qty 1 for 14.14 €
15.03: Normal billing for product qty 1 and add-on qty 1
01.04: Product qty is increased to 2 and billed for +19.87 €
01.04: Add-on qty is increased to 5 and billed for +39.74 €
15.04: Normal billing for product qty 2 and add-on qty 5
15.05: Normal billing for product qty 2 and add-on qty 5
03.06: Product qty is increased to 4 and billed for +34.06 €
03.06: Add-on qty is decreased to 3 and billed for -17.03 €
15.06: Normal billing for product qty 4 and add-on qty 3
15.07: Normal billing for product qty 4 and add-on qty 3
30.07: Product qty is decreased to 3 and billed for -22.71 €
03.06: Add-on qty is increased to 6 and billed for +21.29 €
15.08: Normal billing for product qty 3 and add-on qty 6

CODE

Billing 1 line calculation (product): 
  New qty days = (15.04) - (01.04) = 14
  Current period total days = (15.04) - (15.03) = 31
  Quantity change = 2 - 1 = 1
  Billing line = 14 / 31 * 44 * 1 = 19.87 €

Billing 2 line calculation (add-on): 
  New qty days = (15.04) - (01.04) = 14
  Current period total days = (15.04) - (15.03) = 31
  Quantity change = 5 - 1 = 1
  Billing line = 14 / 31 * 22 * 4 = 39.74 €

Billing 3 line calculation (product): 
  New qty days = (15.06) - (03.06) = 12
  Current period total days = (15.06) - (15.05) = 31
  Quantity change = 4 - 2 = 2
  Billing line = 12 / 31 * 44 * 2 = 34.06 €

Billing 4 line calculation (add-on): 
  New qty days = (15.06) - (03.06) = 12
  Current period total days = (15.06) - (15.05) = 31
  Quantity change = 3 - 5 = -2
  Billing line = 12 / 31 * 22 * (-2) = -17.03 €
  
Billing 5 line calculation (product): 
  New qty days = (15.08) - (30.07) = 16
  Current period total days = (15.08) - (15.07) = 31
  Quantity change = 3 - 4 = -1
  Billing line = 16 / 31 * 44 * (-1) = -22.71 €
  
Billing 6 line calculation (add-on): 
  New qty days = (15.08) - (05.08) = 10
  Current period total days = (15.06) - (15.05) = 31
  Quantity change = 6 - 3 = 3
  Billing line = 10 / 31 * 22 * 3 = 21.29 €

6. Monthly billing, Product and Add-on Quantity Changed During Trial + Qty increase & Decrease on same day

Example: For a monthly subscription with a monthly billing cycle starting on the 10th of each month, with a product sales price of 25 €/month and an add-on sales price of 12 €/month, the subscription is created on January 25th with a product quantity of 1 and an add-on quantity of 10. A 31-day trial starts on the same day. On February 2nd, the product quantity is changed to 2 and the add-on quantity is changed to 5, but no billing is generated since the subscription is still in the trial period. On February 25th, the trial ends and the subscription starts, generating an initial billing line for the product quantity of 2 for 26.79 € and the add-on quantity of 5 for 32.14 €. Normal billing for the product quantity of 2 and add-on quantity of 5 is generated on March 10th, April 10th, May 10th, June 10th, and July 10th.

Timeline and calculations:

CODE

Monthly subscription period
Monthly billing cycle
Billing day: 10
Product Sales price: 25 €/mo
Add-on Sales price: 12 €/mo
25.01: Subscription is created with product qty 1 & add-in qty 10
25.01: Subscription 31 day trial starts
02.02: Product quantity is changed to 2, no billing is generated since Trial
02.02: Add-on quantity is changed to 5, no billing is generated since Trial
25.02: The 31-day trial is over and the Subscription starts
25.02: Initial billing line is generated for product qty 2: 26.79 €
25.02: Initial billing line is generated for add-on qty 5: 32.14 €
10.03: Normal billing is generated for product qty 2 & add-on qty 5
10.04: Normal billing is generated for product qty 2 & add-on qty 5
10.05: Normal billing is generated for product qty 2 & add-on qty 5
10.06: Normal billing is generated for product qty 2 & add-on qty 5
10.07: Normal billing is generated for product qty 2 & add-on qty 5

CODE

Starting period billing calculation for Product:
  Previous billing day = 10.02.2025
  Current period total days = (10.03.2025) - (10.02.2025) = 28
  Discounted days = (25.02.2025) - (10.02.2025) = 15
  Pro-rated days = 28 - 15 = 13
  Billing for 1st period = 15 / 28 * 2 * 25 = 26.79 €

Starting period billing calculation for Add-on:
  Previous billing day = 10.02.2025
  Current period total days = (10.03.2025) - (10.02.2025) = 28
  Discounted days = (25.02.2025) - (10.02.2025) = 15
  Pro-rated days = 28 - 15 = 13
  Billing for 1st period = 15 / 28 * 5 * 12 = 32.14 €

Billing 1 line calculation: 
  New qty days = (10.07) - (24.06) = 16
  Current period total days = (10.07) - (10.06) = 30
  Quantity change = 3 - 2 = 1
  Billing line = 16 / 30 * 25 * 1 = 13.33 €

Billing 2 line calculation: 
  New qty days = (10.07) - (24.06) = 16
  Current period total days = (10.07) - (10.06) = 30
  Quantity change = 2 - 3 = 1
  Billing line = 16 / 30 * 25 * (-1) = -13.33 €