I’ve encountered a similar situation regarding app subscription behavior after reinstallation. Specifically, when a merchant:
- Subscribes to a discounted annual plan.
- Later uninstalls the app, canceling the subscription.
- Reinstalls the app and selects a monthly plan.
- Shopify then issues a prorated refund for the unused portion of the annual plan and activates the monthly plan immediately.
This sequence seems to bypass the intended behavior of APPLY_ON_NEXT_BILLING_CYCLE, which typically maintains the current plan until the billing cycle ends during direct plan changes.
I previously raised this concern in another thread:
Has anyone found a way to handle this scenario effectively within Shopify’s billing framework?