Mid-Cycle Changes Without
Mid-Cycle Math.
Upgrades, downgrades, seat changes, and mid-term amendments — LedgerUp computes the proration, generates the right invoice or credit, and posts clean records to your billing system.
Proration by hand vs proration by rule
Every mid-cycle change is a small math problem — and manual proration means every one is solved slightly differently.
Without automation
- Each upgrade means someone computes day-counts in a spreadsheet
- Downgrades handled inconsistently — sometimes credited, sometimes “next cycle”
- Sales promises proration terms the invoice doesn’t match
- Credits and charges posted as unexplained one-off line items
- Customer disputes because the prorated amount looks arbitrary
With LedgerUp
- Proration computed by consistent, configurable rules — daily or monthly basis
- Upgrades bill the delta immediately; downgrades credit per your policy
- The change order or amendment drives the math, not a side conversation
- Invoices and credit memos carry line detail explaining exactly what changed
- Every proration posts cleanly to Stripe, QuickBooks, or NetSuite
How proration automation works
From plan-change event to correct invoice — every time, the same way.
Change detected from the source of truth
A plan change lands as a CRM deal amendment, a signed change order, or a subscription update. Ari picks up the event with its effective date and the before/after terms.
Proration computed by your rules
Ari applies your proration policy — daily proration by default, credit-versus-carry-forward treatment for downgrades, rounding rules — consistently across every change, instead of whatever the spreadsheet author decided that day.
The right document generated
Upgrades produce a prorated invoice for the remaining term at the new rate. Downgrades produce a credit memo or a carried-forward credit per policy. Line items name the change, the period, and the math.
Books and billing stay aligned
The prorated documents post to your billing system with references to the original subscription and the amendment — so the ledger explains itself at close, and revenue schedules adjust to match.
Works with your existing stack
LedgerUp connects to the tools you already use — no migration required.
Proration use cases
The mid-cycle changes teams automate with LedgerUp.
Mid-Term Seat Expansion
A customer adds 25 seats four months into an annual term. Ari bills the prorated eight months at the contracted per-seat rate and updates the renewal baseline.
25 seats × $30/mo × 8 remaining months = a $6,000 prorated invoice, with the renewal amount updated to include the new seats.
Plan Upgrades With Credit for Unused Time
Upgrading from one tier to another mid-cycle means crediting the unused portion of the old plan and charging the remainder at the new rate — one invoice, both movements, clearly labeled.
An upgrade on day 10 of a 30-day cycle credits 20 days of the old plan and charges 20 days of the new one on a single document.
Contract Amendments With Non-Standard Terms
Enterprise amendments often specify their own proration language. Because Ari reads the amendment, the negotiated treatment wins over the default policy — and the invoice cites it.
An amendment specifying “no credit for downgrade before Q3” is honored automatically, with the carried terms noted on the account.
Proration touches everything downstream
A mid-cycle change ripples into invoices, credits, and revenue schedules.
Credit memos & rebills
The credit side of downgrades and corrections, automated end to end.
See credit memo automationInvoicing
The engine that generates prorated invoices from contract and change data.
See invoice automationRevenue recognition
Mid-cycle changes adjust revenue schedules too — see how they stay compliant.
See revenue recognitionProration FAQ
Common questions about automating proration with LedgerUp.
What proration methods are supported?
Daily proration (exact day-count over the billing period) and monthly proration (whole-month granularity), configurable per plan or per contract. Downgrade treatment — immediate credit, carried-forward credit, or effective-next-cycle — is a separate policy you set.
Where do plan-change events come from?
Signed change orders and amendments (read the same way Ari reads original contracts), CRM deal amendments in HubSpot or Salesforce, and subscription changes in Stripe. Whichever system originates the change, the billing follows it.
How do customers see prorated charges?
As explicit line items: the plan or seat change, the period covered, and the rate applied. Clear proration lines are one of the cheapest dispute-prevention measures — most proration disputes are really explanation failures.
Does proration handle usage-based components?
Usage charges bill on consumption, so they generally don’t prorate — but committed minimums and platform fees alongside usage do. Ari prorates the fixed components and leaves metered components on their normal cycle.
What happens to the renewal after a mid-term change?
The renewal baseline updates to post-change terms automatically — expanded seats or upgraded tiers carry into the renewal amount, which is where manually-managed accounts most often leak revenue.
Can finance review prorations before they send?
Yes. You can require approval for prorated documents above a threshold or for specific accounts — the review lands in Slack with the math shown. Most teams start with approvals on and relax them as trust builds.