Prorating a customer's plan when they have overage
How does overage work with prorating?
Example:
base plan: $100
Overage $300
Pending invoice: $400, due two days from now.
If I change the user's plan to a plan that costs $250/mo, what happens?
Expected result:
Prorate the $400 invoice and charge $300 * (28/30) and credit $100 * (2/30) and charge $249.
I did this, and it seems like the overage charges were not prorated and instead wiped out, so we seem to have "lost" $300 doing this. Is that the case?
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Support Staff 1 Posted by Marc Guyer on 25 Oct, 2010 08:11 PM
Hi Chris -- There is no automatic prorating of usage charges.
2 Posted by chris on 08 Mar, 2011 03:02 AM
Why does it say that there is here then: http://support.cheddargetter.com/kb/pricing-plans/pricing-plan-chan...?
Support Staff 3 Posted by Marc Guyer on 08 Mar, 2011 02:42 PM
Strictly speaking, overage charges aren't prorated. However, overage charges are incurred under the previous pricing plan config. In other words, on paid plan change, the recurring flat charge is prorated and tracked item overage is charged under the configuration of the plan the customer was subscribed to prior to the plan change.
Dean closed this discussion on 16 Jan, 2013 04:20 PM.