Pro-rata billing

Tags: Accounts and billing, Billing, Billing

Part monthly plan and service charges on your bill

Pro rata billing means that your plan is billed in proportion to the number of days it’s been connected. The three main situations where you might notice pro rata billing are when you connect, upgrade or cancel your plan with Vodafone. In some of these situations, plan entitlements are also prorated so it’s important to know how prorating will affect your account. Check the examples below to find out how pro rata billing works.

Connecting to Vodafone

Pro rata example of connecting to a $49 Plan

Jane connected to the $49 Plan on January 10 and was assigned the 1st of each month as her billing date. Her $49 Plan included $550 credit and 1GB data.

  1. As there is a difference between Jane’s billing date and the date she connected, she will see a part monthly charge on her first bill for the period from January 10 to January 31
  2. To calculate the part monthly charge, we divide her $49 plan by the 31 days in the billing cycle. We then multiply this by the 22 days she was connected which equals $34.77
  3. Plan fees are charged in advance so Jane’s first bill will also include her $49 plan fee for the next billing cycle
  4. As she connected to a new plan, she still receives the full entitlements of the $49 Plan ($550 and 1GB data) for the period from January 10 until January 31

Upgrading

Pro rata example of upgrading from a $29 Plan to a $49 Plan

John upgraded his phone on March 19 and signed a new contract to the $49 Plan. His billing cycle begins on the 5th of each month. His old $29 Plan included $180 credit and 200MB data while his new $49 Plan includes $550 credit and 1GB of data.

  1. Because the plan was changed part way through his billing cycle, he’ll see a part monthly charge on his next bill for the period from March 19 to April 4
  2. To calculate the part monthly charge, we divide his $49 plan by the 31 days in the billing cycle. We then multiply this by the 22 days he was connected which equals $26.87
  3. His entitlements for the period from March 5 to March 18 will be prorated. His $29 plan included $180 credit and 200MB of data. When these are divided by the 31 days in his billing cycle and multiplied by the 14 days he was on the $29 Plan, his entitlements from March 5 to March 18 are $81.29 credit and 90.32MB of data
  4. As he’s changing to a new plan, he’ll receive the full entitlements of the $49 Plan ($550 and 1GB data) from March 19 to April 4
  5. John’s $29 plan fee was charged in advance on his last bill, so he’ll receive a prorated credit on his next bill for the period from March 19 to April 4
  6. To calculate this prorated credit we divide his $29 Plan by the 31 days of his billing cycle and then multiply this by the 17 days he wasn’t on the plan. Therefore, he’ll receive a credit of $15.90 on his next bill

Cancelling your service

Pro rata example of cancelling a $49 Plan

Joe cancelled his $49 Plan on July 10. His plan included $550 credit and 1GB of data. His billing cycle begins on the 21st of each month.

  1. As his $49 plan fee was charged in advance, his final bill will include a pro rata credit for the unused days following cancellation
  2. To calculate Joe’s prorated credit, his $49 plan is divided by the 30 days in his billing cycle and then multiplied by the 11 days he wasn’t connected. Therefore he’ll receive a prorated credit of $17.97 on his final bill
  3. As Joe is cancelling his plan, his entitlements from June 21 to July 9 are also prorated. The $550 credit and 1GB (1024MB) of data are divided by the 30 days in the billing cycle and then multiplied by the 19 days he was connected. Therefore his entitlements for the period are $348.33 credit and 648.53MB data

Important information

  • Any plan entitlements which are infinite are not affected by pro rata
  • Some very old plans are billed in arrears so the above scenarios would not apply

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