Mid-Month Plan Change

A customer has requested that their plan be upgraded first thing today, 15th March. He has already paid $50 in advance for the slower “Budget” plan, so we must issue a credit for the unused service as well as a debit for the new ”Deluxe” ($100) plan.

A pro rata credit must be raised for the original plan, and a pro rata debit must be raised for the new plan, resulting in a final charge for the difference in cost.

Note that in the generic case, the charging rules for the new plan may be completely different from the original plan; for example, the new plan might charge in arrears, multiple periods in advance, or on a different charging cycle (quarterly, for example). Adaptive Recurring Billing transparently supports all of these use cases.

Customer has been charged in advance for the whole month:

recurring billing

 

Smile software issues a pro-rata credit for the Budget plan, and a pro-rata charge for the Deluxe plan:

$50 x (17 ÷ 31) = $27.42 credit
$100 x (17 ÷ 31) = $54.84

Amount charged for the March period: $77.42.

Note: If using Smile’s policy engine (for example via RADIUS), Smile billing is capable of computing pro-rata usage allowances for the new plan.