This article outlines the frequently asked questions regarding subscription billing's pro-rated charges. Including what does it mean, when does it occur, and how is it calculated.
What is pro-rated (pro-rata)?
Pro-rata specifically means in proportionality to some factor that can be exactly calculated. In relation to subscription services, it means the proportional cost for how much time you have left in your subscription cycle.
For example:
- You start your annual subscription with 5 users on January 1st at full price
- On January 1st, at your subscription start, you are charged for all 5 users for the upcoming year
- You add 2 users on July 1st of the same year
- On July 1st, you are charged 6 months of the subscriptions fee for the 2 users you added (July - January next year) i.e. half of the full price
- On renewal January 1st of the next year, you will pay for all 7 users at full price
When do pro-rated charges occur?
As new employees join your company, you may need to add them as users to your iAuditor Premium subscription. If you have no more available user seats, you will be charged a pro-rated amount of the per/user/month rate.
For more information on how to add team members as iAuditor users, please see our support article here.
How is the pro-rated amount calculated?
Our iAuditor Premium subscription uses a billing platform to facilitate payments, which also calculates the pro-rated charges.
IMPORTANT NOTE
If you have any questions regarding a subscription charge, please contact our support team for assistance.
Can I calculate the pro-rated amount before adding user seats?
No, but you can contact our support team, and we will be able to provide an estimate - as the charges vary depending on the exact date and time the new user seats are added.
What happens when I free up user seats?
The behavior differs between iAuditor Premium Monthly and Annual subscriptions.
Monthly: deactivating or removing users will automatically reduce the user seats accordingly. The subscription account will also receive pro-rated credit for the unused remainder of the current cycle (calculated the same way as pro-rated charges) - the credit can be put towards future charges.
Annual: deactivating or removing users will free up user seats, available to be filled by new users. If you would like to reduce available user seats, please contact our support team for assistance.
IMPORTANT NOTE
Annual subscription charges beyond 30 days are not entitled to credit or refund.