IDI version 26.8 is now available.  Click here for details: IDI Updates.

Prorating Example

Prev Next

Prorating is based on the percentage of the current bill period that the product has been in service.

  • Product proration type is In Advance.

  • Product service start date is 02/23/99.

  • Monthly charge is $12.12.

  • Bill period start date is 03/1/99.

  • Bill period end date is 04/1/99 (this is the start date of the next bill period).

    The percentage is calculated using the following numbers:

    Duration Used

    The duration of the product, in seconds, from the product service start date to the bill period end date.

  • From 02/23/99 up to, but not including, 04/1/99. The Duration Used = 3,196,800 seconds.

    Duration Per Cycle

    The duration per cycle is the duration, in seconds, from the bill period start date to the bill period end date.

  • From 03/1/99 up to, but not including, 04/1/99. The Duration Per Cycle = 2,678,400 seconds.

    Percentage

    The percentage is the Duration Used divided by the Duration Per Cycle, plus 1 (add 1 to the results of the division, because the product is prorated in-advance).

  • (3,196,800 seconds ¸ 2,678,400 seconds) + 1 = 2.19 %.