Adjust renewal dates based on commitment period

Introduction

This article explains how Commitment Periods affect Subscription Renewal dates and Price recalculation. Understanding these rules helps Vendors, Sellers, and Customers anticipate when Renewals occur and how pricing behaves during and after commitment Terms.

In this article:

• Renewal postponement during commitment
• Price freeze during commitment
• Renewal and price recalculation after commitment
• Commitment reapplication

Renewal postponement during commitment

Renewal and related Price recalculation will not happen during the Commitment Period. If a Subscription is renewable, its first Renewal will be postponed until the Commitment Period is over.

The Renewal does not trigger during the Commitment Period. This means that regardless of the Billing Cycle configured for the Subscription, Renewal events are suppressed throughout the entire commitment Term.

Price freeze during commitment

If a Subscription has an active commitment, a Price freeze will be applied at the commitment start date for the duration of the commitment.

This Price freeze ensures that Subscription pricing remains constant throughout the entire Commitment Period, providing stability and predictability.

Renewal and price recalculation after commitment

Renewal fires on the end date of commitment, and Prices are recalculated on the end date of commitment.

On the end date of commitment, a new Price freeze will be applied as per the Offer's Offer rule pricing, usually 1 year.

Commitment reapplication

After the Commitment Period ends and Renewal occurs, the Subscription continues without commitment unless a new Subscription with commitment is created.

Summary

Renewal and Price recalculation do not occur during Commitment Periods. If a Subscription is renewable, its first Renewal is postponed until the Commitment Period ends. A Price freeze is applied at the commitment start date for the duration of the commitment, ensuring pricing stability. Renewal triggers on the end date of commitment, at which point Prices are recalculated and a new Price freeze is applied according to the Offer's pricing rules, typically for 1 year. Commitment Terms are not automatically re-applied upon Renewal—Customers who want continued commitment must create new Subscriptions.