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
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.
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.
Average Days: 0
Description: Billing occurs once a month. Use the actual number of days in each month as the Average Days.
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.
Average Days: 0
Description: Billing occurs once per quarter. Use the actual number of days in each quarter as the Average Days.
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).
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.
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.