Proration Modes

If your customer has time remaining in their current subscription period when they change their subscription, you can choose how to apply changes to the payment and current subscription period by setting a proration mode. For example, you may allow the customer to immediately start using the selected subscription item or wait until the current subscription period ends before allowing its use.

There are four modes that can be set when a subscription is changed:

• INSTANT_PRORATED_DATE - The current subscription is instantly changed and the customer can start using the new subscription item immediately.

  When a subscription is upgraded, the remaining payment of the original subscription is prorated to the cost of the higher-priced subscription (based on the daily price). The existing subscription period ends when the remaining payment has been completely used on the higher-priced subscription. The payment (renewal) date and starting day of the subscription period are changed based on this calculation.

  When a subscription is downgraded, the remaining payment of the original subscription is prorated to the cost of the lower-priced subscription (based on the daily price). The existing subscription period ends when the remaining payment has been completely used on the lower-priced subscription. The payment date and starting day of the subscription period are changed based on this calculation.

• INSTANT_PRORATED_CHARGE - For upgraded subscriptions only. The current subscription is instantly changed and the customer can start using the new subscription item immediately. While the starting day of the subscription period and payment (renewal) date remain the same, the prorated cost of the upgraded subscription for the remainder of the subscription period (minus the remaining payment of the original subscription) is immediately charged to the customer.
  
  

• INSTANT_NO_PRORATION - For upgraded subscriptions only. The current subscription is instantly changed and the customer can start using the new subscription item immediately. The new subscription rate is not applied until the current subscription period ends. The payment (renewal) date remains the same. That is, the customer is allowed to change the subscription for the remainder of the current subscription period without any consequences. There are no extra charges to use the upgraded item during the current subscription period. The starting day of the subscription period remains the same.
  
  

• DEFERRED - The current subscription continues and the features of the new subscription are not available until the current subscription period ends. The new subscription price is charged and the features of the new subscription are available when the subscription is renewed. The payment (renewal) date remains the same. When the customer changes their subscription, they cannot change the subscription again during the remaining time of the current subscription period. That is, when the customer changes their subscription, the customer may only change their subscription again when the current subscription period ends. The starting day of the subscription period remains the same.

	Use selected subscription item immediately	Apply prorated subscription price to new subscription	Payment (renewal) date is updated	Immediately charge prorated subscription price	Charge new subscription price after current subscription period ends
INSTANT_ PRORATED_DATE1	✓	✓	✓
INSTANT_ PRORATED_CHARGE2	✓	✓		✓3
INSTANT_ NO_PRORATION2	✓				✓
DEFERRED					✓
1The remaining payment of the original subscription is prorated to the cost of the new subscription (based on the daily price). The subscription period ends when the remaining payment has been completely used and the payment date is adjusted accordingly. 2Can only be set for an upgraded subscription item. 3The customer is immediately charged the prorated subscription price for the remainder of the subscription period.

Free trial periods and introductory prices

Free trial periods or introductory prices may be applied to the new subscription if the customer has not previously subscribed to the item or if the duration of the free trial or introductory price has not been exceeded. Free trial periods and introductory prices are not included or applied when a subscription is downgraded or if the proration mode is set to INSTANT_PRORATED_CHARGE.

		Original Subscription: no free trial/no introductory price		Original Subscription: with free trial/with introductory price
		Upgrade	Downgrade	Upgrade	Downgrade
New Subscription: no free trial/no introductory price	INSTANT_ PRORATED_DATE	N/A		Applied1	Not included3
	INSTANT_ PRORATED_CHARGE			Not included	Not included
	INSTANT_ NO_PRORATION			Applied1	Not included
	DEFERRED			Applied1	Not included
New Subscription: with free trial/ with introductory price	INSTANT_ PRORATED_DATE	Applied2	Not included	Applied2	Not included4
	INSTANT_ PRORATED_CHARGE	Not included	N/A	Not included	N/A
	INSTANT_ NO_PRORATION	Applied2		Applied2
	DEFERRED	Applied2	Not included	Applied2	Not included
1The prorated time left in the free trial period or introductory price is applied. 2The full period for free trial or introductory price is applied. If the customer has previously subscribed to the new subscription item, the free trial or introductory price is not included. 3If the change occurs during the free trial period or introductory price of the original subscription, the remaining time of the free trial period or introductory price is prorated and applied (see Example 4: Downgrade, both subscriptions have free trial periods for more information).

Recommended modes

The following table shows the recommended proration mode to use when a subscription is changed. The mode used is based on if the subscription item has a free trial/introductory price or not.

	Subscription changed to item with a free trial period	Subscription changed to item without a free trial period
Downgrade during free trial period/introductory price	INSTANT_PRORATED_DATE	DEFERRED
Downgrade after free trial period/introductory price has expired	INSTANT_PRORATED_DATE	DEFERRED
Downgrade item with no free trial period/introductory price	INSTANT_PRORATED_DATE	DEFERRED
Upgrade during free trial period/introductory price	INSTANT_PRORATED_CHARGE	INSTANT_WITHOUT_PRORATION
Upgrade after free trial period/ introductory price has expired	INSTANT_PRORATED_CHARGE	INSTANT_PRORATED_CHARGE
Upgrade item with no free trial period/introductory price	INSTANT_PRORATED_CHARGE	INSTANT_PRORATED_CHARGE