Proration (or prorated billing) is the practice of adjusting your subscription charges based on the exact number of days a service, location, or plan feature is active during a billing cycle.
Instead of charging you for a full month when a change happens mid-cycle, our system calculates a fractional charge or credit proportional to the remaining time in that billing period.
You can check out all our pricing and compare plans at https://get.nicejob.com/pricing
Why Is My Invoice Higher Than Expected?
If your recent invoice is higher than usual, it is typically due to mid-cycle changes. Subscriptions are billed in advance at the start of each cycle. When you add or upgrade services mid-month, charges for that partial period are held and added to your next regular invoice.
When this happens, your invoice will feature two separate line items for the new item:
Prorated Charge ("Catch-Up Charge"): Covers the active days used during the previous billing cycle.
Standard Monthly Charge: Prepays for the upcoming full billing cycle.
Example: If you add a $100/month service halfway through a 30-day billing cycle:
Prorated Charge: $50 (for the 15 active days in the previous cycle)
Standard Charge: $100 (prepayment for the upcoming month)
Invoice Total: $150 for that specific item.
How Mid-Cycle Changes Work
When you modify your plan, locations, or add-ons mid-cycle, the system splits your billing period into two distinct categories: Unused Time and Used Time.
1. Unused Time (Credits)
Unused Time represents the remaining days in your billing cycle for a plan, location, or feature after you have removed, downgraded, or swapped it. Because you paid for the full month upfront, you are credited for the days you did not use.
Impact on Bill: Generates a prorated credit.
Example: You pay $100/month on the 1st of the month for Location A. On Day 15 of a 30-day month, you remove Location A.
Days Used: 15 days ($50)
Unused Time: 15 days ($50)
Result: A $50 credit is applied to your account balance to refund the unused time.
2. Used Time (Charges)
Used Time represents the actual days a new plan, extra location, or add-on was active during a billing cycle before your next scheduled invoice date. Since you did not pay for this new service at the start of the month, you are charged only for the days it was active.
Impact on Bill: Generates a prorated charge (catch-up charge).
Billing Outcome: Increases your current invoice total.
Example: On Day 15 of a 30-day billing cycle, you add a new service costing $100/month.
Used Time: 15 active days remaining in the cycle ($50)
Upcoming Month: Standard monthly fee ($100)
Result: You are billed a $50 prorated charge for the time used, plus the standard $100 fee for the upcoming month on your next invoice.
Upgrading to a Higher-Cost Tier
When you upgrade your plan mid-cycle, both concepts work together:
You receive an Unused Time credit for the remaining days of your lower-tier plan.
You receive a Used Time charge for the remaining days of your new higher-tier plan.
The credit automatically offsets part of the new tier's cost, and you pay only the remaining prorated difference.
⚠️ Important Note on Full Account Cancellations If an account or subscription is fully canceled and no active subscriptions remain on the account, the cancellation takes effect immediately. Proration and prorated credits do not apply to full account cancellations. Unused prepaid time is non-refundable upon complete cancellation of your account.
Have More Questions
Reach out to our Success department through the little blue chat bubble or email your inquiries direct at support@nicejob.com. We are Happy to help. 😊