Billing frequency changed from monthly to annual

As an example let's use a subscription with billing date - 7th of the month. On the 14th of May customer decides to change from monthly to annual billing frequency. Going forward subscription will have the new billing cycle day for subscription. New billing cycle date is 14th (day when frequency change was done) and first billing period with new cycle will be from 14-05-2019 till 14-05-2020.

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InvoiceDateUtc

ChargeStartDate

ChargeEndDate

ChargeType

Quantity

UnitPrice

TotalPrice

Invoice 1

2019-03-11

2019-03-07

2019-04-07

Purchase Fee

102

62.93

6 418.86

Invoice 2

2019-04-11

2019-04-07

2019-05-07

Cycle Fee

102

62.93

6 418.86

Invoice 3

2019-05-11 

2019-05-07

2019-06-07

Cycle Fee

102

62.93

6 418.86

Invoice 4

2019-06-11

2019-05-14

2019-06-07

Correction

1

-4 969.44

-4 969.44

Invoice 4

2019-06-11

2019-05-14

2020-05-14

Purchase Fee

102

755.16

77 026.32

Invoice 5

2020-06-11

2020-05-14

2021-05-14

Cycle Fee

102

755.16

77 026.32

In period 2019-05-07 - 2019-06-07 are 31 days. Monthly fee is 62.93, price for 1 day = UnitPrice/(days count in billing cycle) = 62.93/31=2.03.

In period 2019-05-14 – 2019-05-07 are 7 days, UnitPrice for 7 days = 7*2.03 = 14.21.

In period 2019-05-07 - 2019-06-07 used quantity is 102, TotalPrice = 102*14.21 =1 449.42.

In Invoice 3 - TotalPrice=6 418.86. 

Due to billing frequency change from monthly to annual on 14th of May, then for period 2019-05-14 – 2019-05-07 customer has not used subscription. As such monthly cycle and Invoice 4 contains Correction for period 2019-05-14 – 2019-05-07 for unused days = 1 449.42 - 6 418.86 =-4 969.44.

In Invoice 4, line with ChargeType = Purchase Fee is first fee after frequency change. UnitPrice = (monthly price) * (month count in period 2019-05-14 - 2020-05-14) = 62.93*12 = 755.16.

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