Prorata typical set up?

[shops-a-lot]

Could someone please explain to me the "typical" way that Prorata billing would be set up?

 

For example, if I want to bill on the 1st of each month, does it make sense to make the 15th the date "after which point the following month will also be charged...?"

 

I'm not sure if the 1st day of the month for billing is what most people use.

 

Any reason not to make the 15th the date after which next month starts?

[tripler]

ther term "prorata" for me may be different ie: prorated where if I bill on the first of the month and someone signs up on the 15th, then they would only be charged 1/2 for the first month.

 

We bill fairly strait forward... as I typed it out it does not come across as strait forward but its just the way we have always done it.

 

Sign up date = payment date invoices generated 2 days prior, overdue 2 days after the payment date (no fee, total of 5 days) Then over due notice on 5th and 7th day (with fee)

 

 

I am not sure I understand your question completely though.

 

Are you asking if:

 

Bills are due on the 1st and generated on the 15th... So you would bill twice in a month( edit- you would bill once a month but ultimately accept payment twice a month)? and if I were to close my account on X day I would still have my services for a month or two?

Edited February 17, 2012 by tripler