Upgrade and Downgrade Rules

This page applies to subscription products billed by duration, such as Enterprise subscriptions. It explains how charges are calculated when you adjust seats during an active subscription term.

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Basic Concepts

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Monthly and Annual Billing

Subscription products support monthly and annual billing:

• Monthly billing: Each purchase and renewal cycle is one month. If auto-renewal is enabled, subsequent renewals occur monthly.
• Annual billing: Each purchase and renewal cycle is one year. If auto-renewal is enabled, subsequent renewals occur annually.

A renewal only extends the overall validity period of the current subscription. It does not change the current seat count or configuration.

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Upgrades and Downgrades

• Upgrade: Change the current subscription to a higher-priced plan or configuration, such as adding seats.
• Downgrade: Change the current subscription to a lower-priced plan or configuration, such as reducing seats.

An upgrade or downgrade only adjusts the seat count of the current subscription. It does not extend or shorten the current subscription term. Changing the billing cycle between monthly and annual billing is not an upgrade or downgrade covered by this page.

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Remaining Subscription Term

The remaining subscription term is the service time from when an upgrade or downgrade takes effect until the current subscription expires. Upgrade charges and downgrade refunds are calculated based on the actual remaining term. The final amount may vary depending on when you submit the change.

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How Adjustment Amounts Are Calculated

The system calculates an upgrade charge or downgrade refund using the following information:

• The amount actually paid for the original order;
• The time already used under the current plan or configuration;
• The remaining term of the current subscription;
• The price of the new plan or configuration for the remaining term;
• Discounts and billing rules applicable to the order;
• Taxes, exchange rates, and amount-rounding rules.

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Upgrade Charge Calculation

An upgrade only changes the seat configuration for the remainder of the current subscription term. It does not add subscription time. The system calculates the difference between the new and original configurations for the applicable remaining duration at the time of the upgrade.

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Formula

If an order contains multiple billable items, the upgrade charge is calculated for each item and then added together. The system calculates the remaining order duration using the actual upgrade time. The remaining duration of the new order, the remaining duration of the original order, and the final upgrade charge may vary depending on when the upgrade occurs. If the calculated result is less than or equal to 0, no upgrade charge is due and no refund is issued.

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Example

Assume a 30-day month for this example:

• The official list price of the original configuration is USD 20/month;
• The user upgrades after 10 days of use;
• The original order has 20 days remaining;
• The new order has 20 days remaining;
• The official list price of the new configuration is USD 60/month.

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Downgrade Refund Calculation

A downgrade only changes the configuration for the remainder of the current subscription term. It does not recalculate or extend the subscription expiration date. The system calculates the remaining value of the original configuration and deducts the purchase charge for the new configuration. The difference is the downgrade refund.

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Formula

Time used is measured to the hour. Any partial hour is rounded up to one hour. When converted to days, the actual number of hours is used. For example, 12 hours is converted to 0.5 days. The later a downgrade occurs, the more time is typically consumed and the lower the remaining value of the original configuration may be.

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Refund Greater Than 0

If the result is greater than 0, the difference is issued as the downgrade refund.

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Refund Less Than or Equal to 0

If the result is less than or equal to 0:

• The refund is 0;
• You do not need to pay the difference;
• A negative refund is never generated.

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Example

Assume a 30-day month for this example:

• The amount actually paid is USD 60;
• The consumed amount is USD 20;
• The remaining service time after the downgrade is 20 days;
• The monthly price of the new configuration is USD 20.

The estimated refund for this downgrade is USD 26.67. If the remaining value of the original configuration is USD 10 and the purchase charge for the new configuration is USD 15, the refund is USD 0 and you do not need to pay the difference.

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When Changes Take Effect

• The amount is calculated using the actual time when the change is submitted.
• After the change takes effect, the plan or configuration of the current subscription changes.
• The effective time and refund result of a downgrade are subject to the order page.
• If multiple upgrades or downgrades are made, each change is settled independently. Subsequent calculations use the valid order and configuration produced by the most recent change.

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Purchase, Renewal, and Plan Changes

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Additional Information

• Promotion eligibility may vary by product, order, and purchase channel. Refer to the order page.
• Taxes, exchange rates, minimum billing units, and amount-rounding methods are subject to the actual calculation on the order page.
• The amount due or estimated refund displayed on the page may change depending on when the adjustment is submitted.
• The formulas and examples on this page are for explanation only. The final amount is subject to the amount displayed before order submission and the actual order result.