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Impact of Suspending a Subscription

I used the suspend function on a subscription for a customer yesterday and got an unexpected result. I was hoping that you could advise me as to why that occurred.

 

The customer is mid-term on an annual agreement. The objective was to stall their subscription for a month and add the stalled time onto the end of their subscription.

 

However, I got an unintended consequence in that it generated a negative invoice for the time the subscription is suspended. What I would like to have happen in this scenario is I issue the suspension and it freezes the suspension, adding 30 days onto the end of the current term. I do not want any credits issued. 






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3 REPLIES 3
Support SME

Re: Impact of Suspending a Subscription

The proration looks to be caused by the following:

 

1) Subscription was already billed for the entire 12 month term

2) Suspend/ Resume was created.

 

Because you have already billed the annual charge, the billing system will try to compensate for the suspension and resumption by creating a proration and proration credit. Therefore, the negative invoice is the calculation for 30 days that the subscription was suspended.

 

The only reason that there was a refund (proration credit) was due to the charge being Annual, therefore being billed for the full term ahead of time. This is the default behavior of the Zuora billing system, it will refund everything from the suspended date to the end of term, then re-bill everything from the resume date to end of term. In other words, had this been a regular monthly billed charge, you wouldn't see such an excessive refund like this.

 

As a workaround:

You definitely would not want to use Suspend for this as the system will treat this as services stopped in oppose to "freemium".

 

We have a knowledge center article which explains how to handle free trials in Zuora. Please take a look here: https://knowledgecenter.zuora.com/kb/How_do_I_handle_free_trials_in_Zuora%3F

 

In short, what you would do in this particular use case is create a discount charge that will give 100% discount and effective for only 30 days. You would add it to the subscription, effective on whatever date you want it to start on. For example:

 

 

Then you can still do the Terms And Conditions amendment to extend the service out an additional 30 days.






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Guru

Re: Impact of Suspending a Subscription

@Rolando when resuming a suspended subscription there is an option to add the suspended days to the current term:

 

If you want to extend the subscription term by the length of time the suspension is in effect, select the Extend the current term by the number of days suspended check box.

 

If You originally had a Subscription with a term 2017-01-01 to 2018-01-01 and you suspended for 25 days, then by checking that box, the term end date should be amended to be 2018-01-26 and when the next billing date arrives, the invoice would be generated. It should have a credit for the 25 days in 2017 that were suspended and a proration charge for the extra 25 days added to the end.


There may be some variance due to the settings for charge alignment, but the charges should ultimately balance out.

Support SME

Re: Impact of Suspending a Subscription

Correct, however the article posted was based off a customer's question where he was not aware if he extended it or not during the suspension. I should update my original posting with that caveat. 

 

Thanks for the additional information as well! 






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