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Proration Multipliers for Standalone Order Products
An order product’s prorate multiplier tells us how many pricing periods are in the order product’s term. Salesforce Billing uses a prorate multiplier and other billing fields to calculate the order product’s billable unit price. By default, Salesforce CPQ calculates a prorate multiplier for a quote line and passes it to the resulting order product. Because you’re creating an order product without CPQ, you must calculate your order product’s prorate multiplier on your own. (Salesforce Billing Managed Package)
Required Editions
| Available in: Salesforce Billing Winter ’21 and later |
Before starting, note the length of your order product terms, and whether they’re in days or months. For our examples, we use a monthly order product with a term of 5/23/19 through 09/30/19.
First, let’s review the types of proration precisions that CPQ supports and how each option calculates prorate multipliers for the order product. You can then use the formulas to calculate a prorate multiplier on your own.
| Proration Precision Type | Calculation | Example |
|---|---|---|
| Day |
If the full subscription term includes a leap day, use 366 in proration multiplier calculation, even if the quote’s term doesn’t contain the leap day. |
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| Day with Calendar Month Weighted | This value works similarly to Day. The only difference occurs when your org uses monthly subscription term units and calculates one full subscription term. If your quote’s term doesn’t contain a leap day, Salesforce CPQ doesn’t add an extra day to the full subscription term length. Only use 366 days if the effective subscription term actually includes a leap day. |
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| Month | Use this formula only if your subscription terms are in months. Divide your order product’s subscription term in whole months by the product’s subscription term. If your term contains a partial month, round the number of months up to the nearest whole number.
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| Monthly + Daily | Use this formula only if your subscription terms are in months. Calculate the subscription term’s length as its number of whole months plus a decimal for any partial month at the end of the term, then divide this value by your subscription term. The partial month equals the number of days in the month divided by (365 ÷ 12). We recommend using this formula if you sell and price products by month or year but don’t regularly quote for specific periods of time.
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| Calendar Monthly + Daily | Use this formula only if your subscription terms are in months.
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You can use this table to figure out the formula needed to provide a prorate multiplier that aligns with your proration needs.
Salesforce Billing always invoices the customer for the order product’s complete balance. However, recurring order products can split that balance differently over their invoice lines based on how you calculated your order product’s proration multiplier and Salesforce Billing proration package settings. To learn how you can align your proration settings, review Aligning Proration Between CPQ and Billing.
