Pro Rata Payments

Pro-Rata and Consolidation are totally different. One consolidates invoices but does NOT change the actual billing date. Pro-Rata bills only a partial amount on orders (depending when the order occurred) so that the due date is synced to the same day for all customers. So Pro-Rata is VERY important, and is something other products like yours offer.

Pro-Rata (Partial Billing)

Pro-rata means charging for only the portion of time a service was used.

• If a customer starts a service in the middle of a billing cycle, they don’t pay the full month.

• Instead, they pay just for the days they actually used.

• Example:

  Monthly service is $30. The customer starts halfway through the month → they pay about $15 for that first partial month.

Use it when:

You want to make billing fair so people don’t pay for days they didn’t get the service.

Consolidation (Combining Invoices)

Consolidation means grouping multiple charges into a single, unified invoice.

• Instead of sending several invoices for different services or different dates, everything gets rolled into one bill.

• Example:

  A customer has Microsoft 365, web hosting, and Proofpoint. Instead of three invoices, you send one invoice with all three items inside it.

Use it when:

You want to simplify billing, reduce clutter, and make payments easier by having one invoice instead of many.

The Difference in One Sentence

• Pro-rata adjusts how much you charge based on time used.

• Consolidation adjusts how many separate invoices you send by combining them.