Overview
Since SiteWorx is billed based on node count, an invoice is generated when nodes are added to an existing subscription. We add new nodes to the existing term and prorate the additional charges for the remaining subscription term. This way, the existing subscription renewal date stays the same for the whole site, for both the existing and newly added nodes. This article explains the prorated billing calculation.
Process
Shortly after nodes are added to an existing subscription, and invoice is issued to the entity that processed the last renewal (or another entity, if requested by the end user). The calculation is split into three steps as outlined below.
Step 1: Credit Amount
- Find the number of days in the original subscription term (ex. 2yr term = 730 days)
- Find the number of days remaining in the current term - that is, the number of days between the commissioning and renewal dates (ex. if nodes were added 60 days into the subscription term, there would be 670 days remaining)
- Divide Step 2 by Step 1 to find the proportion of unused days in the subscription (ex. 670/730)
- Multiply Step 3 by the original price paid
This represents the unused value remaining in the original subscription.
Step 2: Invoice Amount
- Calculate the full price of the new, larger subscription, as if it was being newly deployed in full today
- Multiply Step 1 by Step 3 from above
This represents the prorated total cost of the new subscription - that is, the new cost between the commissioning date and the next renewal date.
Step 3: Prorated Amount Due
- Subtract the Credit Amount from the Invoice Amount
The credit note generated will automatically be applied to the invoice generated. The credit generated may not be used against any other invoice. The credit note will not automatically be sent to the billing entity, but if a copy is required, please contact us and we'd be happy to provide it.
Example
A site was originally commissioned on October 15, 2015 with 200 nodes.
The site purchased a 2 year subscritpion for $2 total ($0.01 per node).
The next renewal date would be October 15, 2017.
On January 20, 2016, the site adds 50 nodes.
Step 1: Credit Amount
- 2 year term = 730 days
- October 15, 2015 to January 20, 2016 results in 97 days elapsed, meaning there are 730 - 97 = 633 days remaining
- 633 / 730 = 0.86712 proportion of unused subscription term remaining
- 0.86712 x $2 = $1.73 value of unused subscription term remaining
Step 2: Invoice Amount
- The new subscritpion size is 250 nodes. At a rate of $0.01/node, the new total cost would be $2.50.
- 0.86712 x $2.50 = $2.16 prorated total cost of the new subscription
Step 3: Prorated Amount Due
- $2.17 - $1.73 = $0.43 amount due
FAQs
Invoices are typically sent within 1 week of the nodes being added to an existing instance.
We'll aggregate charges for all nodes that are added in a single day. If nodes are added over multiple days, one invoice will be generated per day (multiple invoices will be sent).
If nodes are added over multiple days, one invoice will be generated per day. As a result, there will be multiple invoices to cover each day that nodes were added.
Since a subscription's node count doesn't actually increase until the time of commissioning, the prorated charge depends on the exact date of commissioning. Since that date isn't known ahead of time with absolute certainty, we can't quote the actual prorated billing charge - only estimate it, based on an estimated commissioning date.
When nodes are partially removed from SiteWorx, the billed node count of the current subscription term does not decrease. As a result, nodes can be added back later on for no charge, up to the maximum count purchased within the term before charges are applicable. At the time of renewal, only the active node count as shown in SiteWorx will be billed, and any expansions later on are subject to prorated billing.