How-to guide

How to prorate a mid-term upgrade on an annual SaaS contract

Charge the customer only for the days left in the current period: the annual price divided by the days in the period, times the days remaining, for the added seats or the price difference. In Bunny you amend the subscription with a quote, set the new quantity or plan and its effective date, and Bunny calculates the prorated amount, puts it on the quote, and invoices it when the quote is applied.

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Before you start

  • The customer has an active subscription in Bunny, created from an applied quote or the API.
  • For a plan upgrade, the higher plan exists in your product catalog with a price list on the same billing period.

How to prorate an upgrade in Bunny

  1. 1

    Start a change on the subscription

    On the account's Subscriptions tab, select the subscription. Choose Change to add seats or change a price, or Change plan to move the customer to a higher plan. Either action opens a new quote for the amendment, so the change is priced, approved and signed like any other deal.

  2. 2

    Enter the new quantity and the effective date

    On the charge line's ... menu, choose Change quantity, pick the effective date and enter the new total (75 seats, not +25). Bunny adds the change as a blue line under the charge, prorated from the effective date to the end of the current period. That line is exactly what lands on the invoice.

  3. 3

    For a plan upgrade, let Bunny credit the old plan

    Change plan adds a credit for the unused part of the current plan and prices the new plan for the rest of the term, so the customer pays only the difference and the end date stays the same.

  4. 4

    Review the prorated total and get it signed

    The quote totals show the prorated amount before anything is billed. Any approval rules you have set (discount, amount, plan) run on the amendment too. Share the quote for acceptance or e-signature, or apply it directly if the change is already agreed.

  5. 5

    Apply the quote

    Applying updates the subscription and, for a change effective today or earlier, generates the invoice for the prorated amount right away. From the next billing period the customer is billed for the new quantity or plan in full, and the renewal starts from it.

Worked example: adding 25 seats on April 1

Acme is on the Growth plan: 50 seats at $600 per seat per year, on a contract that runs January 1 to December 31, 2026, billed annually. They paid $30,000 on January 1.

On April 1 they grow to 75 seats. The rep selects the subscription, chooses Change, and sets the quantity to 75 effective April 1.

  • Days left in the period (April 1 to December 31): 275 of 365
  • Added seats at the full annual price: 25 × $600 = $15,000
  • Prorated charge: $15,000 × 275 / 365 = $11,301.37

Acme signs, the rep applies the quote, and Bunny invoices $11,301.37 plus any tax. On January 1, 2027 the renewal starts from 75 seats, or $45,000 for the year.

The same date, as a plan upgrade

Suppose Acme instead moves all 50 seats to the Enterprise plan at $840 per seat on April 1. The rep chooses Change plan:

  • Credit for the unused Growth plan: $30,000 × 275 / 365 = −$22,602.74
  • Enterprise for the rest of the term: $42,000 × 275 / 365 = $31,643.84
  • Net amount due: $9,041.10

The end date stays December 31, so the renewal is a single quote at the Enterprise price.

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FAQ

Frequently asked questions

How does Bunny calculate proration?
By the day. Bunny divides the charge's price for the billing period by the number of days in that period and multiplies by the days from the effective date to the period end. An annual charge added with 275 days left in a 365-day year is billed at 275/365 of the annual price.
Does the customer get a new invoice for the upgrade?
Yes. When the amendment quote is applied and the change is effective today or earlier, Bunny generates an invoice for the prorated amount. A future-dated change is billed through the subscription's billing schedule instead of at apply.
What happens with a mid-term downgrade?
A quantity reduction doesn't create a mid-term credit. The lower quantity applies from the next billing period. If you've agreed to give money back for the current period, issue a credit note.
Does a mid-term upgrade change the contract end date?
No. The added seats or the new plan run to the existing end date, so the whole subscription renews together. See co-terming.
Can a rep discount the prorated upgrade?
Yes. The amendment is a normal quote, so the rep can adjust the discount, unit price or total on the line, and your approval rules decide whether it needs sign-off first.