ApprovalMax’s billing model is designed so that all Organisations within the same billing cycle (Monthly or Annual) share a single renewal date.
Consequently, any charges for adding new Organisations to an existing billing cycle or upgrading a subscription will be prorated.
What is a prorated charge?
A prorated charge is a partial charge applied when a subscription change occurs or when a new Organisation is added to an existing subscription partway through a billing cycle.
Instead of waiting until your next billing date, ApprovalMax calculates the cost difference for the remaining time in your current billing period and shows it in the Payment summary, so you can review it before paying.
When are prorated charges applied in ApprovalMax?
Upgrading an existing Organisation's subscription plan
If you upgrade an Organisation's plan (e.g. from Standard to Advanced or from Medium to Large) partway through a billing cycle, ApprovalMax applies a prorated charge for the remaining time in the current billing cycle.
The cost of the new plan is calculated based on the remaining time, with a deduction for the unused value of the previous subscription.
In the Payment summary, you’ll see a line showing the prorated charge with the date range it covers, as well as the next full charge that will be applied on your next billing date.
Upgrading from monthly to annual billing cycles
Monthly and annual billing cycles operate independently. For instance, you might have all organisations on monthly billing cycles renewing on the 4th of each month, while all Organisations on annual billing cycles renew on the 25th of March.
When you switch a subscription from monthly to annual billing, the prorated charge is calculated based on whether you already have an existing annual subscription.
An annual subscription already exists
If you already have an annual subscription, ApprovalMax applies the existing annual renewal date to the upgraded subscription.
For example, the account below already has annual subscriptions renewing on February 4th, and monthly subscriptions, renewing on the 3rd of each month.
If we upgrade one of the Organisations from monthly to annual billing, ApprovalMax aligns that Organisation with the existing annual billing cycle, moving its renewal date to February 4th.
A prorated charge is then calculated for the time from the upgrade date to the shared renewal date, with any unused portion of the monthly subscription deducted.
You can see this in the Payment summary, which shows the prorated cost up to February 4th, the updated annual price going forward, and the date when the next full annual charge will apply.
No existing annual subscription
If you’re upgrading from monthly to annual billing and you haven’t purchased any prior annual subscriptions, ApprovalMax sets the annual renewal date to the day of the purchase and charges the full annual price upfront. Any unused portion of the monthly subscription is deducted, and no proration is applied because the annual billing period begins immediately.
Adding a new Organisation
The first active subscription in a billing cycle (e.g., your first monthly Organisation) sets the renewal date for all subsequent Organisations added to that same billing cycle.
When a new Organisation is added, ApprovalMax calculates a prorated charge to cover the period from when it’s added until the next monthly billing date.
This is shown in the Purchase summary, where you can review the prorated charge for the current period along with the next billing date before completing the payment.
Prorated charges overview
Scenario | Does proration apply? | How it works |
Adding a new organisation | Yes | The Organisation is charged a prorated amount for the remaining time until the next renewal date. The full subscription price applies from the next billing cycle. |
Upgrading a plan or plan size (same billing cycle) | Yes | You are charged for the new plan or plan size for the remaining time in the billing period, minus the unused value of the old plan. Only the net difference is charged. |
Switching from monthly to annual billing (no existing annual subscription) | No | A new annual renewal date is set from the date of purchase. You are charged the full annual price upfront, and any unused monthly value is deducted from it. |
Switching from monthly to annual billing (existing annual subscription) | Yes | The subscription is prorated to the existing annual renewal date. Any unused monthly value is deducted, which may result in a charge or a credit in the next invoice. |
Please note: Proration applies only to the charge, not to usage. Any usage already accumulated in the current billing period is preserved when you upgrade.
Example: If an Organisation has used 150 documents out of a 100-document monthly limit and upgrades to an annual plan, the limits increase immediately, and usage is carried over. The Organisation would show 150 documents used out of the 1,200 annual limit, not a reduced limit based on the remaining days in the billing cycle.