Examples of term length or subscription term start date
This document provides examples illustrating the calculation of subscription total delta and charge subtotal delta metrics when renewing terms by extending or shrinking the initial term.
The current subscription version's term: Term 1 - 2024/01/01 ~ 2025/01/01. This subscription has one rate plan X with one charge A ($100 per month) and is fully invoiced for $1200 ($100 * 12 months).
Example 1
In October 2024, you want to renew the term earlier by extending the initial term by two months. As a result, the renewal subscription will start from 2025/03/01.
Since the period between 2025/01/01 and 2025/03/01 has not been invoiced, the subscription total delta will be $1400 = $200 (extended period) + $1200 (renewal term); charge A's subtotal delta will be $1200 (renewal term) because it includes the increase from the renewal subscription start date only.
When generating the Quote document referring to the Zuora Quotes objects, if you want to include the extended period in the renewal quote total amount, you can sum the Quote Charge Summary object's delta_TCB field.
Example 2
In October 2024, you want to renew the term earlier by shrinking the initial term by two months. As a result, the renewal subscription starts from 2024/11/01.
Since the period between 2024/11/01 and 2025/01/01 has been invoiced, the subscription total delta will be $1000 = -$200 (proration credit of the shrunk period) + $1200 (renewal term); charge A's subtotal delta will be $1000 = $1200 (renewal term) + -$200 (decrease due to the term reduction) because the renewal term overlaps with the shrunk period.
Changing the subscription start date, initial term length, or period type may impact billing.
The following example shows the impact on billing for an early renewal:
The current subscription version's term: Term 1 - 2024/01/01 ~ 2025/01/01, 2024, is fully invoiced for $1200 (100*12).
There is an early renewal in October, with the renewal term starting from 2024/12/01. The renewal term is six months. Hence, the current term has been changed from 12 months to 11 months.
The contractual amount of the original SO line for the current term will be updated from $1200 to $1100
The contractual amount of the new SO line for the renewal term will be $600
The early renewal quote's total amount is $500
The next bill run will have the following three invoice items:
2024/12/01 ~ 2024/12/31 -$100 (proration credits for the last month in the current term)
2024/12/01 ~ 2024/12/31 $100 (the first month of the renewal term)
2025/01/01 ~ 2025/05/31 $500 (from 2nd to 6th months of the renewal term)