Effective version 3.5 Work 365 now supports half year proration on invoices for billing contracts which have a half year included in the term. See the various scenarios below:
When a billing contract has a billing contract with a 1.5 year billing term, or other billing terms where the second half of the term is not a full term, the system will prorate the invoice lines when the invoice is generated for the second term.
The example below has a billing contract term of Jan. 1st, 2020 (start date) - June 30th, 2021 (End date), and the billing contract has an annual billing frequency. This would be a 1.5 year billing term.
The first invoice generated on Jan. 2nd will be for the billing cycle of Jan 1st -Dec. 31st 2020. This will be a regular annual invoice. See the example below.
The second invoice will be a prorated invoice where the invoice lines will prorate to the end of the contract term. In this case it’s Jan 1st 2021-June 30th 2021.
In a reverse scenario, there may be a case were a client has a half year term up front which would need to be prorated. In this case, the end date of the billing contract would be updated to the correct term end date. Also note the Auto-Renew field must be set to No for the prorated term to be calculated.
Then the invoice will be prorated for this term.
This scenario addresses a half year invoice of proration up front, and then a full annual term invoice.
For this scenario follow these steps:
1. Complete the setup of 1 billing contract for the up front half year term. Note for this contract, it is recommended to create the subscriptions with a Do Nothing Provider as these will only be used for the prorated invoicing. The subscriptions on the second billing contract will be used for provisioning.
2. Example July 1st-Dec 31st 2020
3. The prorated invoice will generate.
4. Create a separate billing contract for the full annual term. Note to create the subscriptions with the correct provider.
5. The invoice for this contract will be full term.