Delayed downgrades

Delayed downgrades affect marketplace billing behavior when customers reduce the number of units in recurring subscriptions. By default, delayed downgrades are disabled. To enable them, contact your AppDirect technical representative.

• Delayed downgrades disabled—If a customer reduces the number of units in a subscription, the effective billing date for the reduced number of units is the date on which the subscription is downgraded. For example, if the billing cycle is the first of the month and a customer reduces the number of units from 15 to 10 on May 5, the effective billing date for the updated number of units is May 5 (there is no delay in the effective billing date for the downgrade). On the next billing cycle (June 1st), the customer receives a credit for 15 units for the May 5-31 period, and is charged for 10 units for the May 5-31 period.
• Delayed downgrades enabled—As in the previous example, if a customer reduces the number of units from 15 to 10 on May 5 and the next billing cycle is June 1, the effective billing date for the change is delayed until June 1. No billing adjustment is made for the May 5-31 period so the customer is charged for 15 units for the entire month of May, and on June 1, is charged for 10 units for the June 1-30 period.
  Therefore, if delayed downgrades are enabled for your marketplace, we recommend that you or your customers downgrade subscriptions as close to the end of the billing period as possible.

note

Regardless of whether delayed downgrades are enabled, the service provisioning date is not affected. For example, if a customer requests a change on May 5, the service change is effective on that date, or as soon as the service provider can provision the change.