Automatic prorating

Dreamhouse's friendly Salesforce and Frisbii administrator, D'Angelo, is invited by the Finance Team to do a training session on proration, as the department's new hires would love to understand this functionality in Frisbii.

D'Angelo takes his time to explain this functionality, because he already knows that a new feature available in the Spring'20 release of Frisbii is based on the Automatic prorating function.

If you want to know more about this feature, here is the dedicated article:

The calendar numbering period (365 days).

Now let's follow D'Angelo's explanation of Automatic prorating.

Use case

Proration is generally the act of applying a proportion; a ratio between different parts based on a whole.

It is used in particular in the expression "prorata temporis" which is a proportion according to the time elapsed.

In Frisbii, Automatic prorating allows you to calculate the prorated amount to be paid for a invoice line item which is not covering the whole invoice period.

Fields used by the feature

Most of the fields concerning proration are on the invoice line item:

But there are also some fields on the Subscription Line item related to the invoice line item and on the Corporate Name.
Here is an overview of these fields:

Corporate Name	Automatic prorating	Checkbox	If this option is activated, on top of calculating the prorated price, it will allow you to easily manage subscription interruptions: by generating a prorata temporis credit note for invoices already issued and by adjusting draft invoices prorata temporis.
Subscription Line Item	Do not prorate	Checkbox	Allows you not to apply Automatic prorating (if activated on the Corporate Name) for this Subscription Line Item.
Invoice Line Item	Calculated Pro-Rata	Percentage (4, 6)	This field is filled in by an Apex trigger that takes the ratio between the period covered by the Invoice Line Item divided by the period covered by the Invoice (= total invoicing period) multiplied by 100.
Invoice Line Item	Manual Prorata	Percentage (4, 6)	If you want to refine or correct the prorate, you can enter a prorate rate here that will be used in priority over the calculated prorate.
Invoice Line Item	Prorata applied	Formula (Percentage)	Formula : If Do not pro-rate is checked, result = 1 (=100%). If Do not pro-rate isn't checked: And the field Manual Prorata is filled with a value not equal to 0, the Manual Prorata value is applied Otherwise, if the Calculated Pro-Rata is filled with a value not equal to 0, the Calculated Pro-Rata is applied. Otherwise, a 100% prorate is applied (so no prorate).
Invoice Line Item	Amount excl. VAT before Discount	Formula (Currency)	Before taxes and discount amount. Formula : Percentage * Coefficient * Quantity * Unit Price excl. VAT If the Percentage = 0, calculating with 1 as value, otherwise with the actual percentage value. ROUND function applied. 4 decimal places.

Let's start by activating the option.

The Automatic prorating option on Corporate Name

At Dreamhouse, this option is of course already checked.
But D'Angelo still shows us how to activate it.

Steps

1. Go to the Corporate Name tab.
2. Open the Corporate Name record on which you want to activate the option.

Beware: If you have more than one Corporate Name, and you want to prorate the subscriptions/invoices from all your Corporate Names, you need to activate the option on each of your Corporate Names.

3. Check the Automatic prorating checkbox.

Now the option is activated for all subscriptions and all new invoices created from this Corporate Name.

Application of prorations on an invoice line item

Now, we will apply the proration by following an example.

Steps

1. Create a subscription by filling all the mandatory informations and recurrence options:

2. Create a Subscription Line Item by filling the mandatory fields.

Beware : Do not check Do not prorate.

3. Click on the button Create schedule on the subscription to generate the subscription billing schedule.

4. Go to the first invoice line item from the Subscription Line item related list. Otherwise, you can go to the first invoice of the subscription billing schedule and open the invoice line item.

5. In the Proration section of the Invoice Line Item you will see the prorating calculated according to the Invoice Period (Days) of the Invoice Line item and the Total Invoicing Period (Days) of the invoice:

6. The Amount excl. VAT before Discount is prorated.

Note: If you ever want to adjust the calculated prorate, you can use the Manual Prorata field. The percentage entered in this field is used in priority as the Prorata applied.