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          Annual Proration Examples

          Annual Proration Examples

          Demonstrates how the system calculates pricing based on a yearly billing cycle.

          Base Transaction Details (All Examples)

          • Effective From: 2025-03-28
          • Effective To: 2026-02-04
          • Total Duration: 314 Days
          • Start Proration Day: 5 (Used for DayOfPeriod examples)
          • Start Proration Month: February (Used for DayOfPeriod examples)
          • Proration Period: Annual
          • List Price: $800.00

          1. Start Proration Period: DayOfPeriod (Feb 5) and Allow Partial Proration Periods: True

          • Calculation Logic: The system creates billing periods anchored to February 5th.
          • Period 1: 5-Feb-2025 to 4-Feb-2026
            • Total Days in Period: 365
            • Utilized Duration: 28-Mar-2025 to 4-Feb-2026 (314 Days)
            • Pricing Term Count: 314 / 365 = 0.860274
          • Subscription Price: $800 x 0.860274 = $688.22

          2. Start Proration Period: DayOfPeriod (Feb 5) and Allow Partial Proration Periods: False

          • Pricing Term Count: 1.0
          • Calculation Logic: The term utilizes a single billing period (Feb 5 to Feb 4). Since the subscription falls within this specific annual cycle, the system rounds the partial usage up to 1 full unit.
          • Subscription Price: $800 x 1.0 = $800.00

          3. Start Proration Period: Anniversary (Mar 28) and Allow Partial Proration Periods: True

          • Calculation Logic: The system creates periods anchored to the start date (Mar 28).
            • Period 1: 28-Mar-2025 to 27-Mar-2026
              • Total Days in Period: 365
              • Utilized Duration: 28-Mar-2025 to 04-Feb-2026 (314 Days)
              • Pricing Term Count: 314 / 365 = 0.860274
              • Subscription Price: $800 x 0.860274 = $688.22

          4. Start Proration Period: Anniversary (Mar 28) and Allow Partial Proration Periods: False

          • Calculation Logic: The subscription duration sits entirely within a single anniversary year (Period 1 above); this is counted as 1 full unit.
          • Pricing Term Count: 1.0
          • Subscription Price: $800 x 1.0 = $800.00

          5. Start Proration Period: AlignToCalendar (Jan 1) and Allow Partial Proration Periods: True

          • Calculation Logic: The system calculates the total days utilized divided by the days in the year.
            • Period 1: 1-Jan-2025 to 31-Dec-2025
              • Utilized Duration: 28-Mar-2025 to 31-Dec-2025 (279 /365)
            • Period 2: 1-Jan-2026 to 31-Dec-2026
              • Utilized Duration: 1-Jan-2026 to 04-Feb-2026 (35/365)
            • Total: (279/365 + 35/365) = 0.860274
          • Subscription Price: $800 x 0.860274 = $688.22

          6. Start Proration Period: AlignToCalendar (Jan 1) and Allow Partial Proration Periods: False

          • Calculation Logic: The term crosses the Jan 1 boundary, touching two distinct calendar years (2025 and 2026). Each "touched" calendar year counts as 1.0.
            • Period 1: 2025 (Touched) = 1.0
            • Period 2: 2026 (Touched) = 1.0
          • Subscription Price: $800 x 2.0 = $1,600.00
           
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