Item Level Proration
Item level proration is not enabled by default. Contact support to enable this feature on your Chargebee Billing site.
Overview
Item level proration lets you control how charges and credits are applied for individual subscription line items when you edit a subscription. Instead of using a single Apply prorated credits and charges checkbox for the entire change, you can select a Proration type for each plan and per-unit addon.
Item level proration applies only to addons that use the Per unit pricing model, and only when you change quantity during Edit Subscription with Immediately selected in the Apply changes section. For site-wide proration behavior and billing mode settings, see Billing Mode & Proration.
Note
Item level proration is not available when you select On specific date in the Apply changes section. Scheduled changes follow the existing proration behavior regardless of product catalog configuration for per-unit addons.
Configure default proration type for per-unit addons
After item level proration is enabled, you can configure the default proration type at the product catalog level from the addon's details page.
- Go to Product Catalog and open the addon you want to configure.
- On the addon details page, locate the Proration type section.
The Proration type section appears only when the Pricing model is Per unit.
Select one of the following options:
- Apply site setting (default): Uses the proration setting configured at Settings > Configure Chargebee > Billing LogIQ > Billing & Invoices > Prorate credits/charges. See Configuring proration for subscription change.
- Apply prorated charges & credits: Changes to this addon are prorated for the remaining portion of the current billing term.
- Apply full charges & credits: Changes to this addon are charged or credited in full for the change, without proration.
Set proration type during subscription changes
When item level proration is enabled and you edit an existing subscription, selecting Immediately in the Apply changes section replaces the subscription-level Apply prorated credits and charges checkbox with a Proration type dropdown on each line item.
The Proration type dropdown is not shown when you select On specific date in Apply changes. Scheduled changes keep the previous behavior and are not affected by product catalog proration settings for per-unit addons.
Proration type options by item type
The options in the Proration type dropdown depend on whether the line item is a plan or a per-unit addon.
| Item | Proration type dropdown | Available values |
|---|---|---|
| Plan (any pricing model) | Yes | Apply prorated charges & credits — changes to this item are prorated. Do not apply charges or credits — changes to this item are not charged or credited; behavior is similar to clearing the prorate checkbox. By default, the site-level proration setting from Settings > Configure Chargebee > Billing LogIQ > Billing & Invoices > Prorate credits/charges is loaded. |
| addon (per unit pricing model) | Yes | Apply prorated charges & credits — changes to this item are prorated. Apply full charges or credits — changes to this item are charged or credited in full. Do not apply charges or credits — changes to this item are not charged or credited. By default, the value configured at the product catalog level for this addon is loaded. If the addon is set to Apply site setting, the site-level proration setting is loaded. |
How proration type is stored on subscriptions
The proration type selected for an addon on a subscription is stored on that subscription and cannot be changed once set. The stored value is cleared and can be reset only when the subscription renews for the next term.
Item-level proration scenarios
The following scenarios describe expected billing behavior when item level proration is enabled.
| Starting data | Scenario | Expected behavior |
|---|---|---|
| Subscription created with a plan; item level proration is then enabled | Per-unit addon added mid-term with proration type Apply full charges or credits | Customer is charged in full. |
| Subscription created with a plan; item level proration is then enabled | Per-unit addon added mid-term with proration type Apply prorated charges or credits | Customer is charged on a prorated basis for the time remaining in the term. |
| Subscription created with a plan and a per-unit addon | Mid-term price change for both plan and addon; quantities unchanged; proration type Apply full charges or credits | Only the plan is prorated. The addon price change takes effect at renewal. |
| Subscription created with a plan and a per-unit addon | Mid-term quantity change for both plan and addon; prices unchanged; proration type Apply full charges or credits | The plan is charged on a prorated basis for the time remaining in the term, while the addon is charged in full. |
| Subscription created with a plan and a per-unit addon | Quantity of the per-unit addon reduced by 5 units mid-term (any proration type) | Customer is credited for 5 units in full because those units were charged in full at subscription creation. |
| Subscription created with a plan; per-unit addon added mid-term with 10 units; item level proration is then enabled | Quantity increased by 5 units mid-term with Apply full charges or credits, then decreased by 8 units | Customer is credited in full for the first 5 units (charged in full when added). Customer is credited on a prorated basis for the remaining 3 units (charged on a prorated basis when added). |
Item-level proration with calendar billing
The scenarios above also apply when calendar billing is enabled on your site.
- Specific date: When a subscription uses a common billing date (for example, the 1st of every month) and you add a per-unit addon or change addon quantity, charges are prorated based on the remaining time until renewal.
- Auto set / not set: When a subscription uses a common billing date and you add a per-unit addon or change addon quantity, charges are prorated based on the remaining time until renewal.
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