Billing in Advanced - Prorate

Billing in Advanced - Prorate

This article will cover what happens when a license increase or decrease is made for advanced prorate billing in your PSA.

License Quantity Increase

Main quantity is updated immediately and a temporary line item is added immediately.

Example:

At the start of the month, the customer is billed for 12 licenses for their expected usage of the coming month (billing in advance).

On the 10th May, the licenses are increased from 12 to 13 licenses.

The license total is updated to 13 immediately.

And a temporary prorate addition of 1 is added to the agreement immediately, with an effective date of the 10th May, and the cancelled date for the end of the month (31st May).

On the 1st June, we bill the customer for their expected usage of 13 licenses for the month of June, and the partial usage for the license that was added on the 10th May.

License Quantity Decrease

Main quantity is updated immediately (as the month has already been paid); a temporary line item is added with a negative quantity immediately.

Example:

At the start of May, the customer is billed for 12 licenses for their expected usage of the coming month (billing in advance).

On the 20th May, the licenses are decreased from 12 to 11 licenses.

A temporary prorate reduction of -1 is added to the agreement immediately, with an effective date of the 20th May, and the cancelled date for the end of the month (31st May).

The license total is updated immediately to 11 licenses.

On the 1st June, we bill the customer for their expected usage of 11 licenses, and credit the license decrease that was made from the 20th May.


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