Proration

Note

This section describes an optional feature that you can include in your integration. It is not required for certification.

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.

Note

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

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

Example 1: Proration

View request:

In this 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
    }
  ]
}

View response:

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

{
  "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    }  ]}
      ]
    }
  ]
}

Example 2: Prorated adjustment

View request:

In this 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) to0
Line Item 002 (ProAdjTest-1) sets the Pro-rated Adjustment Type (proadj) to1
Line Item 003 (ProAdjTest-2) sets the Pro-rated Adjustment Type (proadj) to2

{
  "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
    }
  ]
}

View response:

The fixed tax amounts (tax) for Tax Type ID (tid) 10 are set to 0 when proadj is set to0 and1.

The fixed tax amount (tax) for Tax Type ID (tid) 10 is returned with the negative tax amount when proadj is set to2.

{
  "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    }  ]}
      ]
    }
  ]
}{  "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    }  ]}
      ]
    }
  ]
}