Change Billing Cycle – Complex Debit

A customer on a monthly billing cycle would like to be changed to an anniversary cycle to match their pay day – the 15th of every month.

A debit must be issued to correctly bridge the period to the start of the new billing cycle. The debit must be issued pro-rata relative to the length of the new billing cycle.

The customer is currently on a monthly billing cycle and has been charged in advance for April. Blue lines represent billing cycles; black lines represent invoicing periods:

pro rata

Mass Customer Migration

This use case also applies to companies who wish to automatically migrate their customer base en masse from a single monthly billing cycle to an distributed anniversary cycle, which would allow them to spread out their revenue, receivables, collection, bandwidth and support burden. Migration of a single customer is fully automatic with no burden to the operator; migration of a large number of customers is easy, but of course requires management of the change with the customers themselves.

* The cycle can be changed at any time, including after the “early” billing cycle could start or end; the “early” billing cycle can be billed at any time in the future. A cycle change at the end of the month will simply require processing a billing cycle from earlier in the month.