Billing terms run for one calendar month from the first purchase of any non $0 amount (non free) item. Once the account has a billing term specified all further additions will be adjusted (and prorated) to match this term. If an account is however downgraded back to a $0 product, the billing term will be forgotten and will start again from the first purchase of any non $0 amount item. (Note: The following examples use fictional products and prices to make the numbers even.)
- Example 1 (Assumes immediate payment): Free Site is upgraded to a $10 product on the 1st of the month.
- on the 15th the account is downgraded to a $0 dollar product, $5 will be credited back to the account.
- If the account is then upgraded again to a $10 product the client will be required to pay the difference (ie: $5) because the new start and end dates of the term are now the 15th of the month because terms are always started when the first non $0 product is added.
- This means that a client that downgrades and then upgrades to the same product will be required to pay the difference because the dates of the term have changed .
- Example 2 (Assumes immediate payment): Free Site is upgraded to a $10 product on the 1st of the month.
- on the 15th the account is again upgraded to a $20 product. The difference to be paid will be $5 because we're half way through the term so the upgrade to the $20 product actually only costs $10 and there is $5 still left on the $10 product purchased on the 1st. Term start and end dates remain at the 1st of the month.
- on the 15th of the next month the account is upgraded to a $40 product, again because of the fact that only 1/2 of the term is charged (ie: $20) and the account still has $10 left on the $20 product the $10 difference is charged for the change.
- The client is now free to downgrade back to the $20 product and back up to the $40 product for the remainder of the term (till the 1st) because the amount credited on the downgrade will always equal the amount prorated for the upgrade.
Note: When an invoice is canceled or deprecated, we do not delete the invoice. Instead we will add a new invoice with the negative price and mark both of them as paid.