#mangle_api
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- mangle_api, 2 days ago, 24 messages
You can see more detail here: https://dashboard.stripe.com/test/invoices/in_1P2IlTDmVlmqORBI9JQlzcsH. That's called a proration. You can read more about them here: https://docs.stripe.com/billing/subscriptions/upgrade-downgrade. If you want to disable prorations, you can do so with this param: https://docs.stripe.com/api/subscriptions/update#update_subscription-proration_behavior
It's no problem with prorations but why it's 27.96$ if i have quantity 3
- Users buys quantity 2 -> he pays 13.98$
- Updates to quantity 3 -> next invoice is 27.96$, this is weird
That would only be the case if you disable prorations
If i disable the prorations i will have 20$ for 3 quantity right? But i'm curious why it's 27$ still
You are credited for unused amount of 2x quantity, then charged a prorated amount for 3x quantity (for the partial month). Then, you are charged for the 3x amount of that month
Yea i saw that so:
I get 13.98$ dollars back
then i get charged 20$ for quantity 3
and then i see one more Monthly for 6.99$ why?
quantity is 3, why that 6.99$ is there, it's like getting charged for quantity 3
That's how prorations work. When you update and don't specify proration behavior, default behavior is we apply prorations. So when the update to 3x quanitty happens, we credit you for unused time on 2x and then charge you a prorated amount for 3x for the remainder of the month. That isn't charged immediately. It's applied to the next month's invoice. So, the next month's invoice (on Jun 14) has the prorations charged and the full 3x amount for the month of june
This is all expected
If you don't want prorations, you can set proration_behavior to none
Up to you
Trying to see the best way for client, with this proration behavior it feels like we rip money from the client.
We buy on 14 may, quantity 2 and then user updates for quantity 3.
So from May 14 to June 14, he only used quantity 2 and quantity 3. So only 3 users managed to use the app, but he pays 27$ like it's four users.
If the CEO makes 3 seperate accounts and pays the monthly subscription 6.99$ for each, he pays 20-21$ dollars.
If he has one account and changes the quantity to 3 he pays 27$.
The issue is you updated quantity part of the way through the month of may. That quantity change is calculated as a proration. The customer isn't charged that prorated amount until June's bill. You could also charge the proration amount immediately if you want
That way June's bill will be the 20.97
Or you could disable prorations all together
June's bill is higher than 20.97 because it includes's May's proration
I updated imediately after i bought the subscription. Like 1 min after
Yeah
That doesn't change anything conceptually
That's why they're credit the unused time on 2x and charged for 3x
But it's applied to next month's bill
Yea, i understand the credit 2x and charge 3x but the next 6.99$ i don't understand
They effectively were on 3x for all of may since you did that 1 min after
But they weren't charged that extra 1x till the next month's bill
That's what a proration is
Have you read the article I linked at the top of this thread?
Haven't yet, i will try disable prorations, but i have a question
If you update to quantity 3, the money for quantity 2 still remains at Stripe right? And then next month you get charged
Aaaa.. i see what you mean now :))
You pay 13.98$ then upgrade to 3x. But next month you pay 3x for next month but you didn't paid the 3rd last month, that's why it's higher
I need to test with test clocks to see if i change to 3-4-8 then go back to 3 and then to 2. What happens
In different periods of the month
And the proration is calculated down to exact timestamps as well
Yeah if you upgrade at different points in the month we calculate the proration based on the timestamps
Please read the article
Then come back with questions
It'll be more clear
Also one more thing.
Before i had the quantity i was using latest_invoice.total to show the user's next invoice.
Now i need on webhooks to make the invoiceUpcoming with the new quantity and save to Database to show to user
Is this ok?
yeah
No problem