You can configure a discount rule with a Monthly Interval and a Duration value set for Maximum Applicable Months, so that it will sum up to a particular amount over its application period. This is achieved by choosing as the Invoice Application value "Use proration and remainder factors". When applied on the plan instance level for a recurring monthly service, this option will prorate the discount applied on the initial invoice and apply the remaining proportion of the discount on the appropriate invoice.
Configuring a Remainder Discount Rule
See Create a Discount Rule for complete instructions for creating a Discount Rule.
- Remainder Discount Rules can be configured with either a Discount Type of Fixed or Percentage.
- Under Duration, select the radio button next to Specify Interval (from first application), then choose Months from the dropdown menu.
Note: Remainder Discount Rules are not compatible with other intervals. - Choose "Use proration and remainder factors" from the Invoice Application drop-down menu.
Sample Use Case for a Remainder Discount Rule
In the middle of a billing period, on the 6th day of the month, a new plan is added to an account with:
- a $50 per month Recurring charge for Service A;
- an alternative bill day of 1, to ensure all the account's plans are billed on the 1st of the month;
- a coupon that grants a Remainder Discount Rule with a 100% discount for the first two months of service; Because it is a Remainder Discount Rule, we expect that 2 months' of such a discount yields a total discount of $100:
$50 per month × 2 months = $100;
and - a directive producing the next account invoice on the anniversary date, with a prorated billing period plus the next advance billing period for a full month.
We see the following calculations for the first invoice:
| Invoice 1 1-Jan |
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| Period Start | Period End | Days Used | Days In Month | Proration | Discount Unit | Rate | Amount | |
| Service A | 6-Dec | 31-Dec | 26 | 31 | 0.838709 | $50.00 | $41.94 | |
| Discount | Active | 0.838709 | 100% | $(41.94) | ||||
| Service A | 1-Jan | 31-Jan | 31 | 31 | 1 | $50.00 | $50.00 | |
| Discount | Active | 1 | 100% | $(50.00) | ||||
| Total | $0.00 | |||||||
The invoice bills for a prorated billing period, plus the next full billing period. The total discount provided so far is:
$41.94 + $50.00 = $91.94
Here are the subsequent invoices, showing one final application of the discount, and then the full invoice.
| Invoice 2 1-Feb |
||||||||
| Period Start | Period End | Days Used | Days In Month | Proration | Discount Unit | Rate | Amount | |
| Service A | 1-Feb | 28-Feb | 28 | 28 | 1 | $50.00 | $41.94 | |
| Discount | Active | 0.151290 | 100% | $(8.06) | ||||
| Total | $41.94 | |||||||