Prorated invoices

Prorated invoices are calculated based on the amount of time a customer owns a product.

An invoice has a prorated amount:

• If the billing cycle is monthly. In a Sale's Support Representative (SSR) or Reseller purchase flow, the billing cycle of purchase owner applies.
• For any pricing duration other than one time or daily.

The following table describes if invoices are prorated in specific scenarios.:

Scenario	Prorated invoice
Edition with contracts	Contracts have no effect on prorated invoices.
Discounts	If the discount is fixed (for example, a percentage amount), the discount calculation is included in the prorated invoice.
Metered usage	Metered usage does not prorate the invoice fee. The total usage fee is applied in an invoice.
Subscriptions changes (upgrades or downgrades)	For monthly subscriptions, the upgrade or downgrade cost or credit is calculated in the prorated invoice. For a downgrade in the middle of a billing cycle, the amount paid up to that point is credited. For an upgrade, the new amount is calculated, as well as the calculation for the prorated amount. There are two entries in the invoice: a credit or charge amount, and a charge amount for the period of the prorated invoice.

An invoice is prorated depending on the following:

• Subscription start date—Either the date the product was purchased, or a future date if the user is under a free trial.
• Cycle start date—Equal to the subscription start date unless:
  • The Marketplace uses a monthly billing cycle. For example, users are always billed on the first of the month.
  • It is an upgrade with an edition that uses "Keep billing cycle on usage change" (see Add recurring editions). The new order maintains the same cycle start date as the currently active order.
• Number of days left in the month of the billing cycle.

The following example describes how a prorated invoice is calculated:

1. The billing cycle is on the first of the month, April 1.
2. The customer purchases a product on April 15.
3. The prorated invoice is calculated from the day of purchase until the last day of the month, in this case, April 15 to April 30.
4. The prorated invoice is calculated using the following variables:
   • The number of days in the month, in this example, 30.
   • The amount charged per month is 100 dollars a month.
   • The amount of days including the day of purchase to the last day of the month.
     The formula for this example is 100 x (15/30).
5. The next invoice after the prorated invoice charges the regular monthly fee.