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Expertly handle proration and bill fairly

Managing mid-cycle subscription changes can be a real hassle, and error-prone when done manually. With Zoho Billing's proration mechanism, you can rest assured that your customers are fairly billed for exactly the number of days they have used your product.

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Manage mid-cycle subscription changes with prorated billing | Zoho Billing Manage mid-cycle subscription changes with prorated billing | Zoho Billing Manage mid-cycle subscription changes with prorated billing | Zoho Billing Manage mid-cycle subscription changes with prorated billing | Zoho Billing
Manage mid-cycle subscription changes with prorated billing | Zoho Billing Manage mid-cycle subscription changes with prorated billing | Zoho Billing Manage mid-cycle subscription changes with prorated billing | Zoho Billing Manage mid-cycle subscription changes with prorated billing | Zoho Billing

How proration works in
Zoho Billing

When a subscription plan is upgraded or downgraded, or quantities are added or removed, proration kicks in to ensure proper billing.
Upgrade Downgrade
Basic to Premium plan upgrade | Zoho Billing Premium to Basic plan downgrade | Zoho Billing
Customer upgrading from Basic plan ($50/month) to Premium plan ($100/month).
Purchase Date:   
Upgrade Date:
Prorated calculation: Invoice and Credit note:
Zoho Billing calculates Premium plan cost from switch date to next billing date
([ $100/31 ] * 16 = $51.61).
Invoice generated for Premium plan upgrade amount ($51.61).
Simultaneously, unused Basic plan amount is calculated
([ $50/31 ] * 16 = $25.81).
Credit note issued for unused Basic plan portion ($25.81).
Invoice and Credit note:
Invoice generated for Premium plan upgrade amount ($51.61).
Credit note issued for unused Basic plan portion ($25.81).
Final balance:
Credit note offsets the invoice, resulting in a balance of $25.80 ($51.61 - $25.81).
Amount charged:
In this case, the customer incurs a charge of $25.80 for the plan upgrade.
Customer downgrades from Premium plan ($100/month) to Basic plan ($50/month).
Purchase Date:  
Downgrade date: 
Prorated calculation: Invoice and Credit note:
Basic plan amount is prorated from switch date to next billing date
([ $50/31 ] * 16 = $25.81).
Credit note is applied to invoice, balancing it to 0.
Unused Premium plan amount is calculated ([ $100/31 ] * 16 = $51.61), resulting in a credit note.
Credit note is raised for the remaining balance for $25.80 ( $51.61 - $25.81 ).
Invoice and Credit note:
Invoice generated for Premium plan upgrade amount ($51.61).
Credit note is raised for the remaining balance for $25.80 ( $51.61 - $25.81 ).
No charge to customer:
  • In this case, no amount is charged to the customer.
  • Credit note with a $25.80 balance applied to the next invoice on Dec 1, 2023.
ORRefund Option:
Excess credits of $25.80 can be refunded immediately using the Refund option.
Apply proration changes at subscription level | Zoho Billing

Customizable proration options

Aside from mid-cycle plan changes, Zoho Billing goes a step further to accommodate usage-based, decimal measurements, and specific rounding preferences. Automatically generate invoices and credit notes for upgrades and downgrades. You can even toggle proration at the subscription level when setting up new subscriptions.

Prorate flat discount coupons

You have the option to prorate coupons with flat discounts, ensuring the coupon savings adjust based on the actual days of the subscription usage. This ensures that a coupon doesn't fully nullify a subscription's prorated invoice amount.

Apply proration changes on discount coupons | Zoho Billing

See what customers have to say about Zoho Billing

Simplify proration and deliver

a seamless subscription experience

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Message from CEO

Zoho is a software company that ships 45+ products globally. Operating on a subscription pricing model for more than 20 years has given us the opportunity to face and overcome the practical pain points of subscription businesses. Let us solve your subscription billing challenges, together.

Sridhar Vembu

CEO, Zoho Corporation

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