Billing frequency changed from annual to monthly (Legacy subscriptions)
For example scenario, let's use a subscription with an annual billing cycle. During the cycle, the customer decides to change from annual billing frequency to monthly. Change is done on 4th March.
| InvoiceDateUtc | ChargeStartDate | ChargeEndDate | ChargeType | Quantity | UnitPrice | TotalPrice | |
| Invoice 1 | 26/03/2019 | 15/03/2019 | 15/03/2020 | Purchase fee | 3 | 32.40 | 97.20 |
| Invoice 2 | 26/04/2020 | 15/03/2019 | 04/03/2020 | Correction | 1 | -2.92 | -2.92 |
| Invoice 2 | 26/04/2020 | 04/03/2020 | 04/04/2020 | Purchase fee | 3 | 2.70 | 8.10 |
| Invoice 3 | 26/05/2020 | 04/04/2020 | 04/05/2020 | Cycle fee | 3 | 2.70 | 8.10 |
Starting from the 4th March, the subscription billing cycle will be monthly and there will be a correction for unused days in a suspended annual cycle. There are 366 days in the billing period and 355 were used. The correction will be for 11 unused days.
In Invoice 2 usage for 1 license per 1 day 32.40/366 = 0.08852. There are 11 unused days in period, correction is 3 * (32.40/366 *355) – 97.20 = -2.92. UnitPrice for month period is 2.70, TotalPrice for purchase fee is 3 * 2.70 = 8.10
More information available: Legacy annual billing - common scenarios - Partner Center
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