How does proration works with upgrading or downgrading?
You can upgrade or downgrade your plan at anytime, even during your billing cycle. We make use of 'proration' to fairly reflect your plan usage.
Proration can be boiled down to a simple use case:
"If an user uses Plan S for 20 days and switch to Plan M for the next 10 days (assuming that a billing cycle lasts 30 days), he will be charged Plan S prices for two-thirds of the month and Plan M prices for the other one-third."
When you upgrade your plan, you will be charged for the rest of your billing period. Your invoice might be paid with 'credits', which is amount of money you already paid before for the current plan.
When you downgrade your plan, you will be charged for the rest of your billing period. As your previous plan had an higher amount, you still have credits on your accounts. Therefor, a part of your invoice is paid by credits.
The below invoice is an example of generated invoice after downgrade. As you can see this full invoice is paid with credits, paid on the previous higher plan.
Proration can be boiled down to a simple use case:
"If an user uses Plan S for 20 days and switch to Plan M for the next 10 days (assuming that a billing cycle lasts 30 days), he will be charged Plan S prices for two-thirds of the month and Plan M prices for the other one-third."
When you upgrade
When you upgrade your plan, you will be charged for the rest of your billing period. Your invoice might be paid with 'credits', which is amount of money you already paid before for the current plan.
When you downgrade
When you downgrade your plan, you will be charged for the rest of your billing period. As your previous plan had an higher amount, you still have credits on your accounts. Therefor, a part of your invoice is paid by credits.
The below invoice is an example of generated invoice after downgrade. As you can see this full invoice is paid with credits, paid on the previous higher plan.
Updated on: 16/07/2021
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