Proration in Zoho Billing is the mechanism that ensures customers are charged fairly when a subscription changes mid-cycle. When a customer upgrades, downgrades, adds seats, or cancels before the billing period ends, they should not pay for a full cycle at the old rate or be denied credit for the days they already paid for. Proration calculates the exact monetary adjustment for the days involved.<\/p>\n
When a change occurs mid-cycle, Zoho Billing calculates the unused portion of the current plan (a credit) and the cost of the new plan for the remaining days (a charge). The net of these two amounts is applied to the customer’s account as either an immediate invoice, a credit note, or an adjustment on the next invoice, depending on your configured proration settings. The math is handled automatically with no manual calculation needed.<\/p>\n
Zoho Billing gives you control over how proration is applied. You can choose to apply proration immediately (generating an adjustment invoice on the day of the change), at the next renewal (including the proration amount in the next cycle’s invoice), or disable proration entirely (changes take effect at the next renewal with no mid-cycle adjustment). The right setting depends on your customer expectations and billing operations preferences.<\/p>\n
Yes. Proration in Zoho Billing applies to changes in add-ons in the same way it does to plan changes. If a customer adds or removes an add-on mid-cycle, the prorated amount for the remaining days of the current period is calculated and added to or deducted from the next invoice. Add-on proration follows the same proration settings configured at the plan level.<\/p>\n<\/div>\n
Zoho Billing uses daily proration, dividing the monthly plan amount by the number of days in the billing period to get a daily rate. The credit for unused days is (daily rate x unused days), and the charge for the new plan is (new daily rate x remaining days). The prorated amounts are based on exact calendar days, ensuring precision regardless of whether the month has 28, 29, 30, or 31 days.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The calculation in Zoho Billing that adjusts subscription charges fairly when a plan change, quantity change, or cancellation occurs mid-billing cycle.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Proration | Zoho Billing Glossary | Aaxonix","seo_description":"The calculation in Zoho Billing that adjusts subscription charges fairly when a plan change, quantity change, or cancellation occurs mid-billing cycle.","seo_keyword":"proration zoho billing","seo_faqs":"","term_type":"","glossary_related":"","glossary_links":""},"glossary_category":[1262],"class_list":["post-5318","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-billing"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/5318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=5318"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=5318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}