What is Prorated Billing?
Prorated billing ensures you only pay for the services you use. When you make changes to your subscription in the middle of a billing cycle, Vev automatically calculates charges or credits for the unused portion of that cycle. These adjustments appear on your next monthly invoice.
Key changes that trigger proration include:
Adding or removing users.
Adding or removing project plans.
Upgrading your account plan.
Adding Users or Project Plans
When you add a user or a project plan mid-cycle, you are charged a prorated amount from the date of the change until the start of your next billing period.
Example: Adding a User Mid-Cycle
Initial Setup: You subscribe to a Professional plan ($59/user/month) on September 1st for one user.
Your September invoice is $59.
Mid-Cycle Change: On September 15th, you add a second user.
Next Invoice Calculation: Your October invoice will include:
The full monthly charge for two users for October: $118.
A prorated charge of $29.50 for the second user, covering their usage from September 15th to September 30th.
Invoice Summary:
September Invoice: $59 (for one user)
October Invoice: $118 (for two users in October) + $29.50 (prorated charge for September) = $147.50
Removing Users or Project Plans
When you remove a user or a project plan mid-cycle, you receive a prorated credit for the remaining unused days. This credit is applied to your next invoice.
Example: Removing a User Mid-Cycle
Initial Setup: You have a Professional plan ($59/user/month) with two users on September 1st.
Your September invoice is $118.
Mid-Cycle Change: On September 15th, you remove one user.
Next Invoice Calculation: Your October invoice will include:
The full monthly charge for one user for October: $59.
A prorated credit of $29.50 for the removed user, refunding the unused time from September 15th to September 30th.
Invoice Summary:
September Invoice: $118 (for two users)
October Invoice: $59 (for one user in October) - $29.50 (prorated credit) = $29.50
November Invoice: $59 (for one user)
Upgrading Your Account Plan
When you upgrade your plan, the change is effective immediately. We cancel your old plan and apply a credit for any unused time toward the invoice for your new, upgraded plan. Your billing cycle start date will change to the date of the upgrade.
Example: Upgrading from Solo to Professional
Initial Setup: You are on the Solo plan ($29/month + $7/project plan/month) with 1 member and 2 project plans. Your monthly cost is $43. Your cycle renews on the 1st.
Mid-Cycle Change: On September 15th, you upgrade to the Professional plan ($59/month for 1 member, project plans included).
Credit Calculation: You have 15 unused days on your old $43/month plan. The credit is calculated as:
($43 / 30 days) * 15 unused days = $21.50.New Invoice: You are immediately charged for the new Professional plan, with the $21.50 credit applied.
Invoice Summary:
New Monthly Charge: $59 (Professional plan)
Minus Credit: -$21.50 (for unused time on Solo plan)
Total Due on Upgrade: $37.50
Your new billing cycle will now renew on the 15th of each month.
Downgrading Your Account Plan
Downgrades are scheduled to take effect at the end of your current billing cycle. You will not receive a prorated refund for the current month. The new, lower rate will apply from the start of your next billing cycle.
Example: Downgrading from Professional to Solo
Initial Setup: You are on the Professional plan and your cycle renews on the 1st.
Mid-Cycle Change: On September 15th, you request to downgrade to the Solo plan.
What Happens Next: You maintain full access to the Professional plan features until October 1st. On that date, your plan officially changes to Solo, and your next invoice will reflect the lower Solo plan price.
Understanding Your Invoice
Your invoice itemizes all charges and credits for clarity. Here is how to read it:
Prorated Charges/Credits: These lines show the adjustments for any mid-cycle subscription changes. A charge is added when you add a service, and a credit is subtracted when you remove one.
Upcoming Cycle Charge: This line shows the full amount for your next billing period based on your current subscription.
Key Principle: You pay in advance for the upcoming month. Any changes made during that month are calculated and reflected on the following invoice.
Cancellations
When you cancel your account, your subscription remains active until the last day of the billing cycle you have already paid for. You will not be charged again, and no prorated refund will be issued for the current period.
For more information on Billing and to download your past invoices, go to your Vev account overview.