Cross-Cycle Refund

Due to infrastructure failure, a customer was unable to access service from 15th March to 5th April. However, the customer has paid in advance for the service.

To issue the correct credit, the operator need only adjust the automated billing plan to suspend billing for the affected period. Once the change is made, Inomial’s Adaptive Recurring Billing will automatically issue the correct credit without manual intervention.

The credit must be calculated pro-rata across two billing cycles of different lengths.

Customer has already been charged in advance for the whole two months:

billing automation

Smile software issues a credit based on the pro rata applicable for each billing cycle (in this case monthly):

$50 x (17 ÷ 31) = $27.42 CR
$50 x (5 ÷ 30) = $8.33 CR

Total credit issued automatically on next invoice: $35.75 CR.