Subscription Prorate Precision

Salesforce CPQ provides different calculations depending on whether your daily prorate precision uses daily or monthly subscription term units.

If your org uses daily subscription term units, divide the number of days in your quote’s term by the number of days in your quote line’s default subscription term.

If your quote uses monthly subscription term units, divide the number of days in your quote’s term by the number of days in one full subscription term from your quote’s start date.

If your quote uses a start date and end date, the quote’s term equals all the days in this period including the end date.

Term Units = Day

05/23/19 through 09/30/19 totals 131 days. Our prorate multiplier is (131/365) = 0.3589. Our prorated list price is $12000 * (131/365) = $4306.85.

Term Units = Months

The default subscription term of 12 months from our start date of 05/23/19 puts the default end date at 05/22/20. Since 2020 is a leap year, we use 366 days when calculating the prorate multiplier. (131/366) gives us a prorate multiplier of 0.3579 and a prorated list price of $12000 * (131/366) = $4295.08.

If the full subscription term includes a leap day, Salesforce CPQ uses 366 in proration multiplier calculation, even if the quote’s term doesn’t contain the leap day.

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.

You can select this setting only if your Subscription Term Unit is Month. While this value is active, the quote line must have a default subscription term of 12.

This setting is available in Salesforce CPQ Winter ’20 and later.

Term Unit = Month

The default subscription term of 12 months from our start date of 05/23/19 puts the default end date at 05/22/20.

However, since our effective subscription end date is 09/30/19, we don’t include the leap day (2/29/20) in our calculations, giving us a prorate multiplier of 0.3589, or (131/365). Our prorated list price is $12000 * (131/365) = $4306.85.

Divide the length of your subscription term in whole months by the product’s subscription term. If your term contains a partial month, Salesforce CPQ rounds the number of months to the nearest whole number.

You can select this setting only if your subscription term unit is Month.

Term Unit = Month

05/23/2019 through 09/22/2019 totals 4 whole months. Due to the remaining 8 days, Salesforce CPQ rounds the month total to 5.

Prorate multiplier = (5 / 12) = 0.4167

Prorated list price = $12000 * (5 / 12) = $5000

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 setting if you sell and price products by month or year but don’t regularly quote for specific periods of time.

You can select this setting only if your subscription term unit is Month.

Term Unit = Month

05/23/19 through 09/22/19 = 4 months

09/23/19 through 09/30/19 = 8 days, so we’ll use (8/(365/12)) to calculate the partial month value in our prorate multiplier.

Prorate multiplier = (4 + (8 / (365 / 12))) / 12 = 0.3553

Prorated list price = $12,000 * ((4 + (8 / (365 / 12))) / 12) = $4263.01.

This setting works the same as Month + Day, but bases calculations on the exact length of the beginning month and ending month, rather than using (365/12).

You can select this setting only if your subscription term unit is Month.

This setting is available in Salesforce CPQ Winter ’20 and later.

Term Unit = Month

05/23/19 through 05/31/19 = (9/31) days

06/01/19 through 08/31/19 = 3 months

09/01/19 through 09/30/19 = (30/30) days

Prorate multiplier = (3 + (9 / 31 + 30 / 30)) / 12 = 0.3575

Prorated list price = $4,290.32

While Proration Day of Month (Calendar Monthly + Daily) is active, Salesforce CPQ calculates proration periods based on quote’s proration day of month. The setting uses the same formula as Calendar Monthly + Daily to calculate the prorate multipliers.

When the quote's proration day of month aligns with the billing day of the month in Salesforce Billing, proration of invoices is more closely aligned to the proration on the quote.

Term Unit = Month

Proration Day of Month = 28

6/28/19 through 7/27/19 = 1 complete month

7/28/19 through 10/27/19 = 3 complete months

10/28/19 through 11/15/19 =19/31 days​=0.6129032258 day

Prorate multiplier = (1+ 3 + (19 / 31)) / 12 = 0.3575

Prorated list price = 0.384×$4,290.32=$1,647.40

Term Unit = Month

Proration Day of Month = 10

6/28/19 through 7/9/19 = 12/31 = 0.3870967742

7/10/19 through 11/9/19 = 4 complete months

11/10/19 through 11/15/19 =6/31 days​=0.1935483871 day

Prorate multiplier = ((12/31)+ 4 +(6 / 31)) / 12 = 0.3833333333

Prorated list price = 0.3833333333×$4,290.32=$1,644.87

Term Unit = Month

Proration Day of Month = 1

6/28/19 through 6/30/19 = 3/30 = 0.1

7/1/19 through 10/31/19 = 4 complete months

11/1/19 through 11/15/19 =15/31 days​=0.4838709677 day

Prorate multiplier = ((3/30)+ 4 +(15 / 31)) / 12 = 0.3833333333

Prorated list price = 0.3833333333×$4,290.32=$1,644.87