How_do_I_set_up_a_frequency_code_to_prorate_an_amount_

How do I set up a frequency code to prorate an amount?

Prorating a service allows you to only bill a customer for actual usage instead of billing a customer for the entire billing period. You can set up a service to prorate usage by setting up the frequency code for the service with the average days in the billing period.

Prorating a service will determine the number of days in the billing period that have elapsed. 

Billing Period - Elapsed Days in the Billing Period = Remaining Days in the Billing Period

 

Divides the amount to be billed for the period by the average number of days.

Billed Amount / Average Days = Billed Amount per Day

 

And then,.multiples the the billed amount per day times the number of days remaining in the billing period. 

Billed Amount per Day x Remaining Days in the Billing Period = Prorated Amount

 

 

Examples 

Average days refers to the number of days to include during a given period. Use Average Days to prorate a calculation that calculates an amount for example, for monthly, quarterly, or annual billing.

The following examples assume twelve billing periods per year.


Code: Monthly

Average Days: 30

Description: Billing occurs once a month. Allows for prorating new connects, final bills, or new connects and final bills that occur during the month.


Code: Monthly – Actual Days

Average Days: 0

Description: Billing occurs once a month. Use the actual number of days in each month as the Average Days.


Code: Quarterly

Average Days: 90

Description: Billing occurs once per quarter. Allows for prorating new connects, final bills, or new connects and final bills that occur during the quarter.


Code: Quarterly – Actual Days

Average Days: 0

Description: Billing occurs once per quarter. Use the actual number of days in each quarter as the Average Days.


Code: Annual

Average Days: 365

Description: Billing occurs once a year. Allows for prorating new connects, final bills, or new connects and final bills that occur during the year. Example: If period 6 (June) is selected as the billing month, the customer will be billed for the full amount in June. If a customer moves out on September 15th, then the system will prorate the billing based on 2.5 months (July, August, and half of September).


Code: Seasonal

Average Days: 30

Description: Billing occurs once a year. Only prorates new connects, final bills, or new connects and final bills that occur during the month selected for billing in Periods. Example: If period six is selected as the billing month, then the customer will only be prorated if he or she moves in or moves out during the month of June. No billings will occur if the customer moves in or moves out during any other month.

 

Setting average days on a frequency code

1. Open Connect Utility Management > Organization > Frequency Codes.

2. Look up the frequency code that will prorate a service. 

3. Use the Average Days box to enter type average number of days in the billing period. 

 

202302, 2023Feb21

 

 

Copyright © 2025 Caselle, Incorporated. All rights reserved.

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