What is a Pro-Rata Charge?
A pro-rata charge is a partial charge that covers only the portion of the billing period your customer is subscribed or active for. Instead of paying for the full cycle, the customer pays only for the days they used the service.
Example: If a customer joins halfway through the month on a $300 monthly agreement, they will only be charged $150 for that period.
How Pro-Rata Works in Rechargly with Xero
Agreement Setup: When you create an agreement in Rechargly, the owed amount is extracted from Xero’s invoice.
Customer Starts Mid-Cycle: If your customer is added to your Xero bill part way through the month, Rechargly will calculate the pro-rata charges based on the number of days.
Future Billing: On the next cycle, the full charge will apply automatically.