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How to set up subscription prorate precision with Salesforce CPQ and JustOn?

← Billing & Invoice Management FAQ

Your business may require to have both JustOn Billing and Invoice Management and Salesforce CPQ installed in your org, or even integrate the two solutions to automatically create invoices from CPQ's assets and CPQ subscriptions. When it comes to recurring billing, you must consider the prorate precision.

What is subscription prorate precision, and why does it matter for JustOn?

Subscription prorate precision is a Salesforce CPQ org-wide setting that controls how CPQ calculates prices for partial subscription periods – for example, when a subscription starts mid-month or is amended. JustOn Billing & Invoice Management uses its own billing factor calculation to determine how invoice line amounts are derived from a subscription price.

For invoices to match what CPQ quotes, both systems must use the same underlying proration logic. If they do not, customers receive invoices that differ from the amounts on their quote.

Which subscription prorate precision options are compatible with JustOn?

Two of the five CPQ options align with JustOn's billing factor methods:

CPQ Setting JustOn Equivalent Compatibility
Monthly + Daily Recurring Prorated AVG
Calendar Monthly + Daily Recurring Prorated

The remaining options – Day, Month, and Day with Calendar Month Weighted – have no equivalent in JustOn Billing & Invoice Management and will produce inconsistent amounts between quote and invoice.

Which setting should we use?

Monthly + Daily is the recommended setting for CPQ + JustOn environments.

It calculates partial months using an average day value (365 / 12 = 30.4167 days), which is exactly how JustOn's Recurring Prorated AVG works. This ensures that the prorated amount on a CPQ quote line and the corresponding JustOn invoice line item are always identical.

How does Monthly + Daily calculate a partial period?

The formula is:

Prorate Multiplier = (whole months + (remaining days / 30.4167)) / subscription term in months

Example: Annual price €12,000, subscription from May 23 to September 30 (131 days)

  • May 23 – Sep 22 = 4 whole months
  • Sep 23 – Sep 30 = 8 remaining days → 8 / 30.4167 = 0.2630
  • Prorate Multiplier = (4 + 0.2630) / 12 = 0.3553
  • Prorated price = €12,000 x 0.3553 = €4,263.01

JustOn's Recurring Prorated AVG applies the same calculation, so the invoice amount will match.

What about Calendar Monthly + Daily?

Calendar Monthly + Daily uses the actual number of days in each calendar month rather than the fixed 30.4167-day average. JustOn's Recurring Prorated billing factor follows the same principle.

In most cases the results are very close, but minor differences can arise due to rounding and how each system handles month boundaries. For this reason, Monthly + Daily is preferred unless your business requires calendar-exact daily proration.

Can we use the Month setting?
Not if invoice amounts need to match quote amounts. CPQ's Month setting rounds partial months up to the nearest full month, which maximizes revenue on short-term subscriptions but has no equivalent in JustOn Billing & Invoice Management. Invoices will be lower than the quoted price.
Can we change the prorate precision later?
Changes to the prorate precision are not applied retroactively to existing quotes or orders. Only new quotes created after the change will use the new setting. For this reason, the setting should be decided before go-live and kept consistent for the lifetime of the org.
Where do I configure this?

In Salesforce CPQ, navigate to CPQ Settings > Pricing and Calculation and set Subscription Prorate Precision to Monthly + Daily.

In JustOn Billing & Invoice Management, the billing type of the subscription item or the invoice line item source record must be set to Recurring Prorated AVG.

Related information:
Billing Factor Calculation
Subscription Prorate Precision
CPQ and Billing Proration Implementation Guide