What is prorated billing ?
It is the implementation of a system that calculates credits and debits based on the number of days before your next billing date. For example, archiving a user in the middle of a billing cycle will provide you with half its monthly cost in credits, which will then be deducted from your invoice next month, and vice versa for adding users.
This mechanic also affects the activations of plans and modules.
How does it work ?
Initial billing date: Upon the day of monthly billing, the organization will be billed for its number of users based on the plans and modules chosen at that date.
During the billing cycle: During the period, all modules and users added and archived will be accounted for through a prorated debit or credit which will be accumulated in the billing menu.
Next billing date: The balance of the organization's credits during the last month will first be applied on the invoice and then the regular billing process will continue its course.
Hence, your organization will benefit from a billing closer to its real usage during the month.
The organization begins the month with 22 users and the Pro Plan. It is thus billed $88 (22 users x $4). At the middle of the month, 2 users are added and 6 are archived. There are now 18 users.
A debit of $4 is added for the next invoice (2 users x $4 x 15 days remaining to the month / 30 days for the full month)
A credit of $12 is added for the next invoice (6 users x $4 x 15 days remaining to the month / 30 days for the full month)
Upon the next invoice, the organization will receive a net credit of $8 ($4 debit - $18 credit) and be billed $72 for its upcoming month usage (18 users x $4), the invoice's total will then be $64 ($72 - 8$).
Next month's invoice
Last month's debits
2 users x $4 x 15 days/ 30 days)
Last month's credits
6 users x $4 x 15 days/ 30 days)
Next month planned usage
18 users x $4
= 4 - 12 + 72
What happens if I have a seasonal business?
The credit balance is preserved for 12 months following the unsubscription. You can then still benefit from your credit balance if you come back at your next season!
What happens if I unsubscribe ?
Credits are non-refundable and non-transferable. However, your balance is preserved up to 12 months following the unsubscription. It is then possible for you to use them if you decide to resubscribe to the platform in the following 12 months after unsubscribing.
What happens if I am on an annual billing cycle ?
If you are on an annual plan, please refer to this article for more information on how your account is balanced with prorated credits each month.