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Prorata Date & Monthly Cycle


nzinside

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A question comes to my mind on a prorata date.

 

I would like to charge customer on the last date of the month for my and their tax reason. So a new monthly cycle always starts on the first day of the month.

 

If I set 31 as the day of the month customers to be charged on, would they be charged on the last day of short months as well, i.e. February, April and etc.

 

 

Also, why the monthly cycle is from a date of month to the same date of the next month? i.e. 02/03/2007 - 02/04/2007.

 

I believe it should be 02/03/2007 - 01/04/2007. Otherwise, it will be pushed by a day every month.

 

What do you guys think?

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Let me show you something

 

I have set up a dummy hosting plan - Price $31.00 per month ($1 a day) and ordered a plan as below.

 

Description on Invoice -

Plan (13/03/2007 - 16/03/2007) - $3.00

----------------------------------------

The above can be easily interpreted as we charge $3.00 for 4 day's service, not 3 day's.

 

Here are my suggestions/questions.

 

1. Should the dates be (13/03/2007 - 15/03/2007)?

2. Description be (13/03/2007 - 16/03/2007 (exclusive))?

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  • WHMCS CEO
If I set 31 as the day of the month customers to be charged on, would they be charged on the last day of short months as well, i.e. February, April and etc.

No, they would be charged on 31/01/07 then 03/03/07 (due to the short Febraruy month), then 03/04/07, then 03/05/07, etc... onwards.

 

Also, why the monthly cycle is from a date of month to the same date of the next month? i.e. 02/03/2007 - 02/04/2007.

Again, no, it should be 02/03/07, 02/04/07, 02/05/07. That is billed every day on the same month - monthly. Why would it be "pushed" by a day each month? The 15th of every month is the 15th of every month. You'll find most monthly payments work in this way like for example our payments and PayPal Subscriptions - you pay on the same day each month providing the date exists.

 

Matt

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Ok I see the logic now. But I still it will confuse some customers.

 

Anyway, what if I set "1" as the day of the month customers to be charged on? Then would it mean that the monthly cycles are from 1st of a month to 1st of the next month, regardless of the number of days in any month? I hope it works this way.

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Plan (13/03/2007 - 16/03/2007) - $3.00

The above can be easily interpreted as we charge $3.00 for 4 day's service, not 3 day's.

Here are my suggestions/questions.

1. Should the dates be (13/03/2007 - 15/03/2007)?

2. Description be (13/03/2007 - 16/03/2007 (exclusive))?

 

I've already raised this in a ticket, that it needs to be a config choice to show incluive or exclusive dates :D

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