Optional: Disable Proration on Products

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Use this as a reference when configuring non‑prorated plans and when reviewing quotes, invoices, or renewals that involve quantity changes mid‑term.

What is a Non‑Prorated Product?

A non‑prorated product is charged in full for the relevant period, regardless of the exact start or end date within that period. This option can be used on "Subscription" type products.

Instead of prorating by days, we charge based on:

Total quantity at the start of a new billing period and
Incremental quantity for mid‑period changes.

Key Concepts

Total Quantity

Total quantity is the full, current quantity of a product at a given point in time.
It is used to calculate charges at Contract start, and at the start of each billing period.

Incremental Quantity

Incremental quantity is the change in quantity from the prior state.
It is used to price mid‑period changes (i.e. upsells, downgrades).
It is stored in the incrementalQuantity field which can be accessed via API.

On amendment quotes, the initial state for the root product has incrementalQuantity = 0.

Price per Unit (PPU)

Price per Unit is used to calculate the effective per‑unit rate over time, which can be helpful when you have multiple mid‑period changes.

Example

Timeline	Unit Count
Initial Purchase	5 Units
Incremental Quantity	10 Units
Total	15 Units

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Incremental quantity is always defined relative to a “prior” state.

New or Renewal Quotes

For new or renewal quotes (the starting state), the prior quantity is assumed to be 0.

For ramps, the prior quantity is taken from the previous ramp in the same quote/term.

Amendment Quotes

The prior quantity of a product on an amendment quote is the total quantity from the most recently processed quote.

Optional / Mandatory Configurations

If a product is sometimes included and sometimes excluded across ramps, the “prior” state is the last ramp where the product was included.

For example, if ramps A and C include the product and ramp B excludes it, the prior state for C is taken from A.

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Note: Negative quantities (i.e., directly entering a negative quantity to downgrade) are not allowed. However, downgrades are supported when you reduce the quantity in the same incremental segment (see example under “Downgrades and quantity decreases”).

Define a Product as Non-Prorated

By default, proration is enabled for all products. To define a product as non-prorated, turn off the "Enable Proration" toggle when creating a new Product. This option is only available when the product type "Subscription" is selected.

Pricing Rules for Non‑Prorated Products

MonetizeNow uses different rules depending on when the change happens in the billing cycle.

Start of Billing Period

When this applies:

At the start of a billing period, or
When it is the first time a product is billed in that period, even if that date is not the first day of the period.

How we price:

We price using the total quantity as of that point.
The exact per‑unit price depends on your pricing model (Flat, Volume, Tiered, Block, etc.).

Mid‑Period Changes

When this applies:

Any change that occurs after the first instance of the product in a billing period.
Typical example: customer adds more seats midway through an annual term.

How we price:

We do not recompute everything based on the new total quantity.
Instead, the incremental quantity is evaluated as if it were a standalone purchase, independently of the previously billed units in that period.

Example: Non-Prorated Product with Tiered Pricing

Consider a contract with a single, non-prorated product from January 16, 2025 – February 28, 2025, with monthly billing. Additional units are added mid-period.

Tier 1: Quantity 0-5 = $10
Tier 2: Quantity 6-10 = $5

	Period	Incremental Quantity	Total Quantity	Amount	Description
First Period	Jan. 16 - 31	0	5	5 * $10 = $50	All units are priced in Tier 1; non-prorated despite being a partial period.
Mid-Period Change	Jan. 17 - 31	+2	7	2 * $10 = $20	Incremental units are priced individually in Tier 1.
Next Full Period	Feb. 1 - 28	0	7	(5 * $10) + (2 * $5) = $60	Total quantity is evaluated at the start of the new period. 5 units priced at Tier 1, 2 units at Tier 2.

Example: Non-Prorated Product with Volume Pricing

Consider a contract with a single, non-prorated product from January 16, 2025 – February 28, 2025, with monthly billing. Additional units are added mid-period.

Tier 1: Quantity 0-5 = $10
Tier 2: Quantity 6-10 = $5

	Period	Incremental Quantity	Total Quantity	Amount	Description
First Period	Jan. 16 - 31	0	5	5 * $10 = $50	All units are priced in Tier 1; non-prorated despite being a partial period.
Mid-Period Change	Jan. 17 - 31	+2	7	2 * $10 = $20	Incremental units are priced individually in Tier 1.
Next Full Period	Feb. 1 - 28	0	7	7 * $5 = $35	Total quantity is evaluated at the start of the new period. All units priced at Tier 2.

Downgrades and Quantity Decreases

While you cannot enter negative quantities directly from CPQ, MonetizeNow supports downgrades by updating the existing incremental segment with a lower quantity.

Consider a contract with a single, non-prorated product from January 1, 2025 – December 31, 2025, with monthly billing. Multiple upsells and downsells occur during the contract term.

Non-Prorated Product with Volume Pricing

Tier 1: Quantity 0-5 = $10
Tier 2: Quantity 6-10 = $5

	Period	Incremental Quantity	Total Quantity	Amount	Description
First Period	Jan. 1 - Dec. 31	0	10	10 * $10 = $100	All units are priced in Tier 1; non-prorated despite being a partial period.
Mid-Period Change (Upsell)	Jan. 15 - Dec. 31	+5	15	5 * $10 = $50	Incremental units are priced individually in Tier 1.
Mid-Period Change (Partial Downgrade)	Jan. 15 - Dec. 31	+2	12	2 * $10 = $20	Incremental units are priced individually in Tier 1.
Resulting Downgrade Credit	Jan. 15 - Dec. 31			$50 - $20 = $30	A credit of $50 and new charge of $20 are generated, resulting in a net downgrade of $30.