Proration When Plans Change
When a customer changes plan part-way through a billing cycle, they should not pay twice or get charged unfairly. Proration is how billing systems calculate the right adjustment.
This article explains proration in plain terms so you can answer customer questions confidently.
What Proration Means
Proration splits a charge according to how much of the cycle is used. If a customer upgrades halfway through a month, they pay roughly half the difference for the remaining time rather than a full extra cycle.
Upgrades vs Downgrades
Upgrades usually take effect immediately with a prorated charge. Downgrades are often scheduled for the next renewal so the customer keeps what they have paid for until then.
- Calculate the unused portion of the current plan.
- Credit it against the cost of the new plan.
- Charge or credit the difference.
Frequently Asked Questions
Can I switch proration off?
Yes. Some businesses prefer simple full-cycle billing. We configure whichever model suits your pricing and support load.
Does a downgrade refund the difference?
Usually it credits the account toward future charges rather than refunding cash, but this is configurable.
If you need a hand with any of this, your Progressive Robot delivery team is ready to help. Raise a ticket from the Support area of your client portal or speak to your account manager and we will guide you through the next steps.