Our Billing Team often gets asked, "I’m on an annual subscription - why did I receive an invoice during my subscription?" Because you are on an annual subscription, we prorate new users and also updating future numbers to match your new headcount. This helps to make invoicing on your annual renewal much easier.
If you are looking for more information about how adding/removing people impacts your invoices, see this article.
How Additional Users Are Billed
If the number of new or reactivated users added to your account exceeds the number of available seats, then you will be charged for these additional seats for the remainder of your subscription term. Instead of being charged for the full subscription term, the additional seat(s) are prorated based on activated date and the time left in your current subscription period. 15Five will not charge for invited/new users until the invite is accepted and the user becomes active.
When Additional Users Are Billed
Two invoices for these additional seat charges will be sent on the next monthly anniversary of your annual subscription start date. For example, if your annual subscription started on June 1st with 50 user seats, and 15 additional users were added between June 1st and July 1st, you would be invoiced on July 1st for those additional 15 users. Monthly anniversaries would always be on the 1st.
Why Are There Two Invoices For Additional User Charges?
Our billing processor breaks down your prorated charges for additional users into two invoices:
- Invoice #1 contains prorated by day charges for additional users, from the date they were added to 15Five through your monthly anniversary date (i.e. the 1st of the month)
- Invoice #2 is for X additional user seats, prorated from your monthly anniversary date through the end of your subscription period (i.e. July 1st through June 1st)