Prorating
When a mapped addition’s count changes after the client was invoiced, prorating makes the next invoice cover the difference for the part of the period it applied to. ConnectActive does it by adding a one-time prorated agreement addition to the client’s next invoice, alongside the original addition. The prorated addition covers the extra users from the day of the change to the end of the period, and expires at the end of that period.
With prorated refunds on, a drop works the same way with a negative price: a one-time refund for the users removed, for the rest of the period.
Prorating needs ConnectActive’s Use Prorating and, in ConnectWise, Prorate Agreement on the agreement. See Turn on prorating for every setting.
Billing ahead
Section titled “Billing ahead”One user added. January’s invoice, already issued, covered 5 users. On January 16 a user is added. ConnectActive sets the addition’s count to 6 for February’s invoice and adds a prorated addition for 1 user from January 16 to January 31, expiring January 31. February’s invoice has the 6-user addition plus the 1-user prorated addition.
Two invoices already issued. January’s invoice for 5 users went out on December 20, February’s on January 20. On January 22 a user is added. ConnectActive sets the count to 6 for March’s invoice and adds two prorated additions: 1 user from January 22 to January 31 (expiring January 31) and 1 user from February 1 to 28 (expiring February 28). March’s invoice has the 6-user addition and both prorated additions.
One user removed, with refunds. January’s invoice covered 5 users. On January 16 a user is removed. ConnectActive sets the count to 4 for February’s invoice and adds a refund (a negative price) for 1 user from January 16 to January 31. February’s invoice has the 4-user addition plus the refund.
Billing in arrears
Section titled “Billing in arrears”One user added. You will invoice January on February 1; the count is 5. On January 16 a user is added. ConnectActive does not change the count of 5 yet, but adds a prorated addition for January 16 to January 31. Once the invoice is generated on February 1, it sets the count to 6.
When a prorated addition is made
Section titled “When a prorated addition is made”By default ConnectActive prorates only when the count rises above the count already invoiced in the period. If a count drops from 10 to 8 and then rises to 9 in the same month, the client was already invoiced for 10, so nothing is added. Prorate All Additions prorates every new user regardless; with prorated refunds on, every addition and removal is prorated anyway.
On the invoice
Section titled “On the invoice”A prorated addition’s invoice description says what it is for, for example Prorated for additional count of 1 with its dates, after the mapping’s Top Comment. With Include Changes on Invoice, it also names the users added or removed. With tiered pricing, its price comes from the schedule’s ranges the change falls in.
Annual agreements
Section titled “Annual agreements”For an annual agreement, the prorated additions go either on the annual agreement itself, which must have Bill Prorated Additions Immediately ticked in ConnectWise, or on a monthly agreement of the client that you choose.