What is proration in SAP CEC-SAL-SB - Subscription Management and Billing?

SAP Term: proration

• Component: CEC-SAL-SB

• Component Name: Subscription Management and Billing

• Description: The proportional calculation of subscription charges according to the number of days that a subscription is active in a billing cycle.

Smart SAP Assistant

• Key Concepts: 
  Proration is a feature of SAP CEC-SAL-SB Subscription Management and Billing that allows for the adjustment of subscription fees based on the length of time a customer has been subscribed. It is used to ensure that customers are only charged for the amount of time they have been subscribed, rather than a full month or year. 
  
  How to use it: 
  To use proration, you must first set up the subscription plan in SAP CEC-SAL-SB Subscription Management and Billing. Once the plan is set up, you can enable proration by selecting the “Enable Proration” option in the plan settings. This will allow customers to be charged only for the amount of time they have been subscribed. 
  
  Tips & Tricks: 
  When setting up a subscription plan with proration enabled, it is important to consider how long customers will be subscribed for. If customers are likely to be subscribed for short periods of time, it may be beneficial to set up a plan with a lower base fee and higher proration rate. This will ensure that customers are not overcharged for their subscription. 
  
  Related Information: 
  For more information on setting up subscription plans with proration enabled, please refer to the SAP CEC-SAL-SB Subscription Management and Billing documentation. Additionally, there are many online resources available that provide more detailed information on how to use proration in SAP CEC-SAL-SB Subscription Management and Billing.