Proration of Charge Pricing based on Days or Months

Proration refers to a subscription payment that has been amended based on the actual usage. This means that the user only pays for what they used rather than for the whole billing period.

Steps: 

1. Proration can be set on Ordway by navigating to Menu > General Settings > Subscription Settings > Proration Method. A subscription can be Prorated with Exact Days.

PRORATION EXPLAINED WITH AN EXAMPLE IN ORDWAY

1. In this example, the Charge Start Date is Apr 1, 2025 and Charge End Date is Dec 31, 2025 for Recurring Charge Type and Billing Frequency is Annual.

Ordway price is $250 per Unit

Quantity  is 275 

@5% discount

Ordway Effective Price is $65,312.50 annually

2. If the above is prorated by Exact Days, this is the calculation:

$65,312.50 Per Annum which is 365 days 

But for Charge Start Date is Apr 1, 2025 and Charge End Date is Dec 31, 2025 , it is 275 days, 

Hence the Ordway Effective is $49,208.05 for 275 days 

3. Ordway Effective is  $48,984.38  for 9 months.

Ordway Customers can now Prorate the Subscription Charge on Salesforce based on Days On SalesForce as well. 

2. In Salesforce, Navigate to Ordway Settings > Plan Picker page and Add the Billing Period Start Alignment field > Add.

3. If you do not see any values on Billing Period Start Alignment Date by default, you may need to add it to the Object Manager for Opportunity Product.

3a. Navigate to Setup > Object Manager > Opportunity Product > Billing Period Start Alignment option under fields and relationships item.

3b. And add to Dependency field (Controlling Field) for Charge Type.

4. Ensure Mapping is correctly set at Subscription Charge level for the forward and Reverse mapping.

5. Navigate to Opportunities and its associated products and click on Update Plans. This will open the plan picker form.  By default, when no option is chosen on Billing Period Start Alignment OR is left blank, Billing Period alignment results in Proration by Months. (Follow the example given above).

6. Now, set the Billing Period Start Alignment to Charge Start Date and Save.

Observe the change in total price:

Note: During a SF package update, any custom picklist added to the Salesforce Object DOES NOT get automatically added to the latest version. You must manually add it again.