When your Legacy plan is changed, we delete your current [old] plan and replace it with the new one.
In this example, the following data is used for the calculation:
- The customer's current plan was an Annual term at a rate of $588/yr.
- The plan was changed on Feb. 20, 2017, and replaced with the Annual plan at a rate of $288/yr.
- The customer's renewal date does not change and remains April 08, 2017.
- The time remaining on the plan at the time of change until the next renewal date is ~47 days.
Item 1: In the screenshot above, you can see that item 1 shows a $75.34 credit that was calculated for the remaining time left on the current Annual subscription, until the next renewal date. This is based on the number of days left on the current subscription, from the date of the plan change until the next renewal date (02/20/2017 through 04/08/2017 equals ~47 days). The $588/yr rate is converted to a daily rate of ~$1.61/day, which results in the $75.34 credit.
Item 2: Item 2 shows a $36.90 charge that was calculated for the remaining time left on the new Annual subscription, until the next renewal date. This is based on the number of days left on the current subscription, from the date of the plan change until the next renewal date (02/20/2017 through 04/08/2017 equals ~47 days). The $288/yr rate of the new plan is converted to a daily rate of ~$0.79/day, which results in the $36.90 charge.
Item 3: Item 3 shows the next renewal charge ($288.00) under the new plan, which will occur on the normal renewal date of 04/08/2017.
Item 4: Adding line items 1-3 together results in the Amount Due on the renewal date, or $249.56. For this customer example, the charge will cover one additional year of service starting on 04/08/2017.
Note: Credits are actually calculated down to the seconds, so the data used in the example is simplified for purposes of demonstration.
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