Prorata Charge

Pro-rata charge is generated for a period between the contract start date and the billing cycle start date of the immediate billing cycle month. Prorata charge is enforced to generate a proportionate amount for the actual service usage period.

If the number of days of service provided to the customer is lesser than the billing cycle period then to align the service usage period with the billing cycle period, charge value is taken in proportion to the actual service usage days.

Prorata charge is calculated on the recurring charges (i.e. subscription charges) only when the start date of the contract is other than the billing cycle start date.

Pro-rata rule is applied while defining pricing for a plan. Pro-rata charges are calculated based on the following rules:

For example: Let's consider, a customer billing cycle date is 1st of every month and service is provided to him on 16th of April. If you apply this rule to calculate prorata amount then prorata charges are generated for the exact service usage period, i.e. for 15 days (from 16th of April to 30th of April).

For example: For the above case, if you apply this rule to calculate prorata amount then prorata charges are generated for the whole month, i.e. for 30 days (from 1st of April to 30th of April).

For example: For the above case, if you apply this rule to calculate prorata amount then zero prorata charges are generated for the initial month.

For example:  User can define his own rule to calculate prorata charges for the whole month if a customer contract start date is between 1st to 15th of a month and he can impose zero prorata charges if his contract start date is beyond 15th, i.e. between 16th to end of a month.