Managing Prorated Billing in Autotask Contracts

By default, Autotask prorates service changes on a contract based on the effective date of the change. This means:

• The system calculates a prorated charge for any mid-period changes.

• Additional line items are added to the customer’s invoice for the prorated amounts.

If you prefer not to prorate service changes, Sync 365 offers a special feature that allows you to disable prorating in Autotask.

How It Works When Prorating Is Disabled

When prorating is disabled:

• Any quantity or service changes are applied on the contract’s billing period date.

• If the contract hasn’t been billed for the current period, the change will apply to the current billing period.

• If the contract has already been billed, the change will apply to the next billing period.

Pros and Cons

Benefits:

• Cleaner, simpler invoices

• No extra prorate line items

Drawbacks:

• Potential loss of revenue for mid-period changes that would otherwise be billed

Important Note on Re-Enabling Prorating

If you choose to re-enable prorating (Autotask’s default behavior), be mindful of when you do it:

• Turning prorating back on mid-period can lead to unexpected charges, as Autotask will attempt to prorate from the date of the last quantity change.

• For best results, only re-enable prorating near the start of a new contract billing period.