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Pro-Rated Charges

by QuickBooks Online Accountant Updated 6 months ago

Pro-Rated Billing Charges

Pro-Rated amounts are charged when you add a new client to your Wholesale Discount on a different date to your normal billing date.

For example, if your billing date is the 8th of every month and you add a new file after this date, you will then be charged a pro-rated amount on the 8th of the next month.

When you are billed you are billed for the month forward and thus why you get charged the pro-rated amount plus the month forward amount.

The Pro-Rated charges will vary depending on the subscription you sign up to.

The way Pro-Rated amounts are calculated is as follows:

EUR € Amount of your subscription divided by how many days in that particular month times how many days this file has been active before your next bill date.

For Example:

If you add on a Plus subscription at EUR €19.50 a month on the 21st of the December (31 days in the month) you will be charged:

EUR €19.50 divided by 31 days = 63 cents

63 cents times 18 (days it has been active) = EUR €11.35 (Pro-Rated)

EUR €11.35 + EUR €19.50 = EUR €30.85 – First amount you will be charged, and then moving forward you will only be charged EUR €19.50

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