The interworks.cloud platform allows you to prorate a partial month's fees in order to align your charges to a specific billing day. You can select which customers will be charged in prorated mode and which products can be excluded from proration. You can also define a billing day for a specific product.Proration can be applied only for recurring charges and can  be applied not only for monthly charges but for all kind of billing cycles. 

Enable Prorated Charges for a Customer

For charging a customer in prorated mode,  customer's billing parameter  'Enable Prorated Billing' must be enabled and a billing day has to be defined for the customer. Customer's billing day can be the first or last day of the month, the day he placed his first order or any specific day (for example, the 10th day of each month).

For better understanding how proration works, imagine the following scenario:

• The billing day of the customer is set to 1st of the month
• The customer places an order on 9th of July 2019. 

For this scenario, the first invoice will include a prorated charge for the period 07/09/2019 - 07/31/2019. The next invoice will charge for a period of 08/01/2019 - 08/31/2019, to align with customer's billing day.

 Use of Actual Days for Calculating Prorated Charges

The interworks.cloud platform calculates the prorated charges using always the actual days of the billing cycle. If for example, an order is placed of 10th of January the prorated amount would be 22 days divided by 31 days in January, multiplied by the total charge. If the customer places an order on April 10th, however, the prorated amount would be 21 days divided by 30 days in April, multiplied by the total charge. 

Exclude Products from Prorated Charges

For excluding a product from prorated charges, product's pricing parameter 'Exclude from pro-rata' must be set to true. For such products, the system ignores customer's prorated options and charges the product without applying prorated charges

Enable Prorated Charged for a Product

For charging a product in prorated mode, regardless customer's billing parameter, you can define a billing day specific for this product. In this case, the subscriptions for products with their own billing day are renewed on product's billing day.

For more details, please check Setting Product Billing Day