Pro-Rating

Pro-Rating is an important process that allows service providers to allocate or apportion a charge, fee, discount, or price over a period of time, according to usage.

The OCS.io solution supports pro-rating on various levels, including Recurrent Fees, Balances, and Absolute Discounts. Pro-Rating can be applied during activation, deactivation, or even service suspension during the billing period. OCS.io can also be configured to pro-rate charges and discounts based on specific start and end dates or to pro-rate based on a prorating rule.

In the case of Recurrent Fees, pro-rating is used to divide the period fee based on the number of days in the billing cycle. For example, if a service costs 100 EUR per month, and a customer cancels on the 15th day of that month, the company may pro-rate the fee and charge the customer 50 EUR for the half-month of service used.

Pro-rating can also be used for Balances, such as Free Units. If a customer activates a service in the middle of a billing cycle, the Free Unit Balance grant will be pro-rated based on the number of days remaining in the cycle.

In addition, pro-rating can be used for Absolute Discounts applied to a customer’s account. For example, suppose a customer is eligible for an Absolute Discount of 10 EUR on their monthly service fee. In that case, the discount can be pro-rated based on the number of days in the billing cycle that the customer was eligible for the discount.