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I do not know how to use prorata or its having a problem


Beekingo

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Hello!

 

I can't make work the prorata this as i want.

 

Lets say i have a plan that is cost $36 per month. I have prorata enabled with date 1 and charge next month 0. If i place an order today 30/4 the system charge the customer $26,40 ($36 recurring).

 

Where does this number came? I should not charge the client just 1 day or $1,20 ?

 

If i set prorata date to for example, 11, i still getting the exactly same price, $26,40.

 

thanks!

Cristian

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Hello, this is the correct usage of prorata billing.

 

Prorata in basic terms means Partial payment so they only pay for what is remaining in the current month per your own settings.

 

So, If you bil onth 28th but a client orders on the 1st they will be charged less than your monthly fee. a client ordering on the 15th would be charged even less.

 

To prevent silly small amounts and very close billing you should set up a day in the month where the client will be billed the next month also. lets say thats the 14th for ease. using a basic rounded fee of 30 a month here for example

 

Client orders between the 1st and 13th: they pay 30 or less depending when they order in the month

Client orders 15th they pay 15 + next months 30.

 

A setting of 28 for billing date, prorata checked and next month charged on/after 14th is more or less what you would need. it all depends when you want to be paid.

 

 

I hope that makes sense, as for why its charging your 26.40, i can only assume there is something else being ordered at the same time or some setting that is working against you, I would suggest you apply the next month setting though, you could be provisioning a sever for just $1.00 and then the client not pay the next invoice, you would lost that month cost having already paid for it yourself.

Edited by CDJ Hosting
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I have just seen another setting, i dont know if its new or old, but the prorata setting can be overridden

 

setup > general settings > ordering

 

at the bottom you will see there is an over-ride checkbox that sets the prorata to the accounts signupdate to allow for billing everything on the same date, if this is checked then that is the reason for your "odd" 26.40 amount.

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