Chapter 4.3.10 - Proration

The Proration (pror) key calculates prorated taxes on a transaction that represents a partial month of service. Percentage-based taxes are prorated by way of the charge (chg) amount passed. However, fixed and per line taxes are subject to special prorating rules and procedures. Some tax authorities allow sellers to prorate fixed and per line taxes for partial months, but many insist on receiving the full amount. REST v2 applies these rules automatically if the pro-rating feature is used. Just specify the percentage of the month the service was active as a decimal in the pror key.

A few things to keep in mind:

  • If prorating is not allowed on a tax, the full amount is taxed.
  • If prorating is allowed on a tax, the fixed or per line tax applicable to the service will be returned, multiplied by the percentage supplied.
  • Remove the Proration (prop) key from the line item (itms) if you don't want to use Proration functionality. Setting prop to 0 means 0% proration for pro-rateable fixed taxes.

Prorated Adjustments

If the proration is being used for an adjustment credit rather than a partial charge, the ratio of the percentage applied should reflect the portion of the month in which the service was not active.

Use the Pro-rated Adjustment Type (proadj) to tell Communications REST v2 how to handle the return of prorated adjusted fixed taxes.

  • 0 Default
  • 1 Don't return non-proratable fixed taxes in the response
  • 2 Return non-proratable fixed taxes in the response

Note

Proration functionality is not supported on a Tax Inclusive (incl set to true) line item (itms) or on line items with a quantity (qty) greater than 1.

Proration Example

Proration (pror) is set to 50% for 10 lines (line).

{
  "cmpn": {
    "bscl": 1,
    "svcl": 0,
    "fclt": false,
    "frch": false,
    "reg": false
  },
  "inv": [
    {
      "bill": {
      "pcd": 534300
      },
      "cust": 1,
      "lfln": false,
      "date": "2018-05-15T12:00:00Z",
      "itms": [
        {
          "ref": "ProrationTest",
          "chg": 0,
          "line": 10,
          "sale": 1,
          "pror": 0.50,
          "tran": 7,
          "serv": 42
        }
      ],
      "invm": false,
      "dtl": true,
      "summ": false
    }
  ]
}

Response

The prorated tax amounts (tax) are seen on Tax Type IDs (tid) 6 and 23.

View the Response JSON
{
  "inv": [
    {
      "itms": [
        {
          "ref": "ProrationTest",
          "txs": [
            {
              "bill": true,
              "cmpl": true,
              "tm": 0,
              "calc": 4,
              "cat": "CONNECTIVITY CHARGES",
              "cid": 5,
              "name": "Telecom Relay Surcharge",
              "exm": 0,
              "lns": 10,
              "min": 0,
              "pcd": 534100,
              "rate": 0.1,
              "sur": true,
              "tax": 0.5,
              "lvl": 1,
              "tid": 23
            },
            {
              "bill": true,
              "cmpl": true,
              "tm": 0,
              "calc": 4,
              "cat": "E-911 CHARGES",
              "cid": 7,
              "name": "E-911",
              "exm": 0,
              "lns": 10,
              "min": 0,
              "pcd": 534200,
              "rate": 0.4,
              "sur": false,
              "tax": 4,
              "lvl": 1,
              "tid": 10
            },
            {
              "bill": true,
              "cmpl": true,
              "tm": 0.5,
              "calc": 1,
              "cat": "EXCISE TAXES",
              "cid": 4,
              "name": "Federal Excise Tax",
              "exm": 0,
              "lns": 10,
              "min": 0,
              "pcd": 0,
              "rate": 0.03,
              "sur": false,
              "tax": 0.015,
              "lvl": 0,
              "tid": 6
            }
          ]
        }
      ]
    }
  ]
}

Proration Adjustment Example

Proration (pror) is set to 50% for 10 lines (line) and the adjustment flag (adj) is set to true.

  • Line Item 001 (ProAdjTest-0) sets the Pro-rated Adjustment Type (proadj) to 0
  • Line Item 002 (ProAdjTest-1) sets the Pro-rated Adjustment Type (proadj) to 1
  • Line Item 003 (ProAdjTest-2) sets the Pro-rated Adjustment Type (proadj) to 2
  • {
      "cmpn": {
        "bscl": 1,
        "svcl": 0,
        "fclt": false,
        "frch": false,
        "reg": false
      },
      "inv": [
        {
          "bill": {
            "pcd": 534300
          },
          "cust": 1,
          "lfln": false,
          "date": "2018-05-15T12:00:00Z",
          "itms": [
            {
              "ref": "ProAdjTest-0",
              "chg": 0,
              "line": 10,
              "sale": 1,
              "pror": 0.50,
              "proadj": 0,
              "tran": 7,
              "serv": 42,
              "adj": true,
              "adjm": 0,
              "disc": 0
            }        ,
            {
              "ref": "ProAdjTest-1",
              "chg": 0,
              "line": 10,
              "sale": 1,
              "pror": 0.50,
              "proadj": 1,
              "tran": 7,
              "serv": 42,
              "adj": true,
              "adjm": 0,
              "disc": 0
            },
            {
              "ref": "ProAdjTest-2",
              "chg": 0,
              "line": 10,
              "sale": 1,
              "pror": 0.50,
              "proadj": 2,
              "tran": 7,
              "serv": 42,
              "adj": true,
              "adjm": 0,
              "disc": 0
            }
          ],
          "invm": false,
          "dtl": true,
          "summ": false
        }
      ]
    }

    Response

    The fixed tax amounts (tax) for Tax Type ID (tid) 10 are set to 0 when proadj is set to 0 and 1. The fixed tax amount (tax) for Tax Type ID (tid) 10 is returned with the negative tax amount when proadj is set to 2.
    View the Response JSON
    {
      "inv": [
      {
        "itms": [
          {
            "ref": "ProAdjTest-0",
              "txs": [
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0,
                  "calc": 4,
                  "cat": "CONNECTIVITY CHARGES",
                  "cid": 5,
                  "name": "Telecom Relay Surcharge",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 534100,
                  "rate": 0.1,
                  "sur": true,
                  "tax": -0.5,
                  "lvl": 1,
                  "tid": 23
                },
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0,
                  "calc": 4,
                  "cat": "E-911 CHARGES",
                  "cid": 7,
                  "name": "E-911",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 534200,
                  "rate": 0.4,
                  "sur": false,
                  "tax": 0,
                  "lvl": 1,
                  "tid": 10
                },
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0.5,
                  "calc": 1,
                  "cat": "EXCISE TAXES",
                  "cid": 4,
                  "name": "Federal Excise Tax",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 0,
                  "rate": 0.03,
                  "sur": false,
                  "tax": -0.015,
                  "lvl": 0,
                  "tid": 6
                }
              ]
            },
            {
              "ref": "ProAdjTest-1",
              "txs": [
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0,
                  "calc": 4,
                  "cat": "CONNECTIVITY CHARGES",
                  "cid": 5,
                  "name": "Telecom Relay Surcharge",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 534100,
                  "rate": 0.1,
                  "sur": true,
                  "tax": -0.5,
                  "lvl": 1,
                  "tid": 23
                },
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0,
                  "calc": 4,
                  "cat": "E-911 CHARGES",
                  "cid": 7,
                  "name": "E-911",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 534200,
                  "rate": 0.4,
                  "sur": false,
                  "tax": 0,
                  "lvl": 1,
                  "tid": 10
                },
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0.5,
                  "calc": 1,
                  "cat": "EXCISE TAXES",
                  "cid": 4,
                  "name": "Federal Excise Tax",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 0,
                  "rate": 0.03,
                  "sur": false,
                  "tax": -0.015,
                  "lvl": 0,
                  "tid": 6
                }
              ]
            },
            {
              "ref": "ProAdjTest-2",
              "txs": [
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0,
                  "calc": 4,
                  "cat": "CONNECTIVITY CHARGES",
                  "cid": 5,
                  "name": "Telecom Relay Surcharge",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 534100,
                  "rate": 0.1,
                  "sur": true,
                  "tax": -0.5,
                  "lvl": 1,
                  "tid": 23
                },
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0,
                  "calc": 4,
                  "cat": "E-911 CHARGES",
                  "cid": 7,
                  "name": "E-911",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 534200,
                  "rate": 0.4,
                  "sur": false,
                  "tax": -4,
                  "lvl": 1,
                  "tid": 10
                },
                {
                  "bill": true,
                  "cmpl": true,
                  "tm": 0.5,
                  "calc": 1,
                  "cat": "EXCISE TAXES",
                  "cid": 4,
                  "name": "Federal Excise Tax",
                  "exm": 0,
                  "lns": -10,
                  "min": 0,
                  "pcd": 0,
                  "rate": 0.03,
                  "sur": false,
                  "tax": -0.015,
                  "lvl": 0,
                  "tid": 6
                }
              ]
            }
          ]
        }
      ]
    }

    See Also

    Input Objects

    Output Objects