Coupon not included in proration calculation

Problem Statement

This article helps you understand coupon not included in proration calculation.

Solution

Scope

Proration logic and Fixed or percentage Coupon - Legacy Product Catalog

Related scenarios

• Proration logic with fixed or percentage coupons in Legacy Product Catalog.
• Coupons not applied for an extended period.
• Next billing amount does not show the coupon applied.

Summary

As per the design, for the fixed amount coupons, if the coupon fixed amount is already deducted in the first invoice, then there is nothing to deduct during the second invoice and thus coupon is not included in the scenario mentioned in the description.

Percentage coupon (on invoice amount)

The discount is calculated on the total invoice amount for the billing period. As that total increases (e.g. after plan or quantity changes), the percentage is applied to each new invoice so the total discount matches the percentage of the combined amount.

Example: Plan $100, 10% coupon. First invoice $100 → $90 after coupon. You add another $100 (e.g. quantity change) → second invoice $90 after coupon. Total $180, which is 10% off $200.

Fixed-amount coupon (on invoice amount)

The fixed amount is applied to the total invoice amount for the billing period, not to every invoice. Once that fixed amount is fully used in the period, later invoices in the same period do not get the coupon again.

• If the first invoice already used the full fixed amount, the next invoice in the same period will not show the coupon.
• If the first invoice was smaller than the coupon amount, the remainder is applied to the next invoice in that billing period.

When you extend the billing period (e.g. change next billing date) and prorate, a new invoice is generated in the same billing period. If the fixed coupon was already fully applied on an earlier invoice in that period, it will not apply again on the new invoice. When you shorten the billing period and prorate, Chargebee may issue a credit note; the coupon is included in that calculation as applicable.

Additional information

Video walkthrough (fixed-amount behavior in a billing period): Screencast.

For coupon types and behavior, see Coupons – Fixed amount coupons.