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 seats and update 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 seats are billed
If the number of new or reactivated people added to your account exceeds the number of available seats, 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 the activation date and the time left in your current subscription period. 15Five will not charge for an invited/new person until the invite is accepted and their account becomes active.
When additional seats are billed
Two invoices for 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 seats, and 15 additional people were added between June 1st and July 1st, you would be invoiced on July 1st for those additional 15 seats. Monthly anniversaries always occur on the 1st.
Why are there two invoices for additional seat charges?
Our billing processor breaks down your prorated charges for additional seats into two invoices:
- Invoice #1 contains prorated by day charges for additional seats, 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 seats, prorated from your monthly anniversary date through the end of your subscription period (i.e. July 1st through June 1st)