Prorating Contracts
- 16 Jan 2024
- 1 Minute to read
Prorating Contracts
- Updated on 16 Jan 2024
- 1 Minute to read
Article Summary
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When a customer's contract starts before or after the default billing day defined in their contract, you charge them the full billing cycle upfront. Proration lets you only charge them for the time between the start of their contract and their next default billing day.
Example
A customer signs up for a monthly plan on the 20th of November with their contract starting on the same day and the default billing day for that plan is the 1st of every month.
Without proration, they are invoiced for the full month, November 1st to December 1st, on the 20th of November.
With proration, they are invoiced for the time left in their current billing cycle, November 20th to December 1st, on the 20th of November.
Proration on a contract won't work unless the plan it's based on also has prorating enabled.
Log in to dashboard.nexudus.com if you aren't already.
Click Finance > Contracts.
Click the contract whose details you want to view.
Under the Price section, enable the Adjust the next invoice based on the number of days left between the renewal date and the next billing day (prorate) toggle.
Proration options are greyed out if the plan you use to create the contract doesn't have prorating enabled.
- Click Save changes.
The contract is now prorated based on the dates you've defined.
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