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Proration Policies

Clicking the Proration Policies tab displays the Proration Policies home page.

In the View section, select an appropriate list view from the drop-down list to go directly to that list page, or click Create New View to define your own custom list view. List views let you display a list of records that match specific criteria.
In the Recent section, select an item from the drop-down list on the right to display a brief list of the top records matching that criteria. The choices are listed in the table that follows.
From the list, you can click any object name to go directly to its detail.
Click New Proration Policy to create a new proration policy.
To change the value of an editable field shown in the list double-click it, enter the value you want and click Save.

Recent Choice		Description
Recently Viewed		The last 10 or 25 records you viewed, with the most recently viewed item listed first. This list is derived from your recent items and includes records owned by you and other users.
Recently Created		The last 10 or 25 records you created, with the most recently created item listed first. This list only includes records owned by you.
Recently Modified		The last 10 or 25 records you updated, with the most recently updated item listed first. This list only includes records owned by you.

What is Proration?

The proration feature in Billing Central enables you to automatically charge your customers a proportional amount for partial billing periods at the start and end of a contract in accordance with the proration policy used by your business. For example, if a customer signs up halfway through the month, the proration policy determines how much they are charged for that initial half month.

You can configure and save a number of proration policies with the calculation method you want to use, such as Use Actual Days in Billing Period or Use Whole Month Threshold. You can also set the most commonly used proration policy as the default.

To assign a proration policy to a contract, select it from the Proration Policy field on the Billing Contract Detail page. When creating a new contract, the default proration policyThe proration policy that has the Automatically Assign to New Contracts checkbox set. is assigned unless you select an alternative. The chosen policy controls how proration is calculated for the lines on that contract, ensuring that the customer is billed correctly with any partial billing periods taken into account. Only contract lines where the billing type is "Recurring Fixed" are prorated. Prorated values are recorded on billing schedules and on billing documents.

Note:

Proration calculations are based on the sales price after discounts and pricing structures have been applied. Billing Central automatically rounds the values up or down, to two decimal places. For example, 1.234 would be rounded down to 1.23 and 1.235 would be rounded up to 1.24.

You cannot delete proration policies that are assigned to contracts.

For examples of the different calculation methods, see Calculating Actual Day Proration, Calculating Whole Month Threshold Proration, and Calculating 30 Days per Month Proration. The Invoice as Full Billing Periods calculation method equates to no proration because partial periods are billed as full periods.

Related Concepts

Calculating Partial Periods

Calculating Actual Day Proration

Calculating 30 Days per Month Proration

Calculating Whole Month Threshold Proration

Adjusting Final Period Value to Remainder from First Period

Custom Proration Calculation Methods

Related Tasks

Creating a Proration Policy

Assigning a Proration Policy to a Contract

Assigning a Proration Policy to Multiple Contracts

Reference

Proration Policy Fields

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