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Accounting for Entitlements

Entitlements are accounted either to usage accrued to a given subscription or in a consolidated manner at the user level. Whether usage is accrued to a subscription or to the user is dependent on the specific product being entitled and the specific type of the bundle being subscribed to. For example, VM running time, can be accrued to a virtual machine, but data transfer is usually not attributable to the virtual machine as it shares the network on which the traffic is being generated and accounting for data transfer is done at the router. So, when purchasing a virtual machine, data transfer entitlements in the associated bundle will be added to the user's overall entitlements for data traffic, whereas when purchasing a network, the data transfer on that network will be tied specifically to that subscription.
Note: This above model of accruing entitlements is different from CPBM 1.x, where entitlements were accrued at the account level and not on a per user basis. In 1.x this meant that unused entitlements from one user's subscriptions spilt over to other users. That implied, that CPBM could not keep accurate track of individual spend of a given user, as it got diluted with entitlement data from other users.

Price Selection

Since prices can be revisioned in CPBM, it is important for CPBM to charge appropriately based on pricing changes. For all utility pricing, CPBM will pick up the latest prices on a daily basis to apply to any utility charges. This allows operators to change the prices and have the updated prices passed on to the consumer by the next day. For all subscriptions, pricing will be the latest price on the date the renewal invoice is posted. Note that this means that if the prices change between renewal invoice generation and posting, the new price will be reflected at the time of posting (but at the time of posting only).

Prorating

For monthly invoices only, subscription charges are always prorated when subscriptions are created to pay only for duration of the month that the subscription was active. This is done at the granularity of a single day. In addition, all entitlements will also be prorated accordingly.

 

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