What is Pro Rata Billing? Why is my first invoice amount different from my renewal price?

 

Your first invoice covers a few days more or less than the billing term you selected to make your renewal date on the first day of the month.

 

Any renewal invoice is generated for your exact billing term, for the exact renewal price (after applying any recurring discount you have) and is due on the first day of the month. Below is a detailed explanation:

 

1.

We calculate prices from the first day of a month.

 

When you place an order, you are billed only for the remaining days in that month.

 

For example, if you order on March 10, you will be billed for 22 days (March 10 to 31), and not for the entire month in your first invoice.

 

The price for the unused days (March 01 to 09) will be deducted from the price for your billing term.

 

Any renewal invoice will be generated for your full billing term (eg. April 01 to April 30).

 

 

2.

Any order placed on or after the 23rd day of a month will cover the remaining days of that month and the following month.

 

If you order on March 23, you will be billed for 39 days (31 days + 8 days), from March 23 to April 30 in your first invoice.

 

Any renewal invoice will be generated for your full billing term (eg. May 01 to May 31).

 

If you choose annual billing term and order a product on March 23, 2020, you will need to pay for March 23, 2020, to February 28, 2021, at the initial time of the order.

 

Any renewal invoice will be generated for the full year (March 01, 2021, to March 31, 2022).

 

What is Pro Rata Billing?
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We bill products on the same day each month and charge a prorated amount at the initial time of order. This is called Pro Rata Billing. This is why the total amount in your first invoice is different from your renewal price.

 

You are not paying anything less or more. When your first invoice is less than the renewal price, the period you are paying for is a few days shorter than your billing term. Similarly, when your first invoice is more than the renewal price, the period you are paying for is a few days larger than your billing term.

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