Cancellation Refund Options

BSS administrators can select how to refund canceled licenses. These options are applied per product type.

In the BSS go to Setup → Products → Product Types and select a product type. Under Refund Policy, note the 3 available options.

Open

• Refund based on days the service was used - The refund will be calculated based on the remaining days in the subscription, taking the start date into account. This is the default option.

• Refund based on hours the service was used - The refund calculation will be based on the 24-hour periods the service was used by the customer. This means that the customer will get a full refund if he cancels within 24 hours, regardless if the cancellation day is the next day of the purchase day.

• No refund - No credit invoice will be issued when the subscription is canceled.

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When a new product type is created, the option Refund based on days the service was used will be the default option. For product types that have been created via the Get Services Definition, this option may be set by each Service Manager if available, and the fields will be locked. In case this information cannot be provided, then the default option will be selected, and the fields will not be locked.

• Child Product Types - Any child product type inherits the selection from the parent. The option is unlocked so that the user can update it.

• Tenant Reseller - The cancellation refund options of the product type are inherited by the tenant reseller, and the setting is locked.

Exceptions

The cancellation Refund policy is not applied to the following cases:

• Recurring Products with Usage Charge = Whole Billing Period - For this kind of product we don’t apply the refund policy defined on the product type because we don’t issue any credit invoice when this option is enabled. 

• Recurring Subscriptions with Installments. For subscriptions with installments, we continue to calculate the refund amounts based always on days. We have scheduled to support this in one of our following releases.

• Assets - For Asset product types, the cancellation refund policy options will not be available on the product type page.

• PPU Products - Currently, PPU products do not support cancellation. Therefore, the cancellation refund policy will not be taken into account for PPU products.

Full Cancellation Example for Refund Based on Hours

Assuming a product type is set to Refund based on hours the service was used, and a subscription for the product has a start date of 17/06, purchased at 10:00 AM UTC, and end date of 16/07:

Licenses Cancellation Example for Refund Based on Hours

For license cancellations, we refund the most recent purchases based on the date and hour they have been purchased. Below is a paradigm for a monthly subscription purchased on 01/06.

The licenses will be refunded are the following:

• The 2 licenses were purchased on 14/06 (line 5): These 2 licenses will be refunded for the period 16/06 - 30/06 since the cancellation time (11:00 UTC) is before the
  purchase time (14:00 UTC).

• The 2 licenses were purchased on 12/06 (line 4): These 2 licenses will be refunded for the period 16/06 - 30/06 since the cancellation time (11:00 UTC) is before the
  purchase time (12:00 UTC).

• The 3 out of the 9 licenses purchased on 10/06 (line 3): These 3 licenses will be refunded for the period 17/06 - 30/06 since the cancellation time (11:00 UTC) is after the purchase time (10:00 UTC).

The credit invoice that will be created for the licenses cancellation transaction on 17/06 will have the following items:

• Refund 4 licenses for the period 16/06 - 30/06

• Refund 3 licenses for the period 17/06 - 30/06

Changing the Cancellation Refund Policy

Changes to the Cancellation Refund Policy during the current billing cycle will not affect the current billing cycle. The changes will take effect after the renewal of the subscription.

Changes to the Cancellation Refund Policy will be applied to new subscriptions when they are activated. If a subscription has been set to be activated on a future date, its Cancellation Refund Policy will be the one set on the creation date.

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