What is a Credit Note

A credit note is issued when an invoice needs to be corrected for any reason, such as:

• Adjusting the number of items or seats billed
• Applying a discount that was missed.
• Correcting an error in the total amount.

How Does a Credit Note Work?

• If the Invoice is Unpaid:
  • The credit note reduces the total amount to be paid.
  • For example, if an invoice was originally for 500€ and a 100€ credit note is issued, you will now owe 400€.
• If the Invoice is Paid:
  • The value of the credit note will be added as refundable credits to your account.
  • These credits can be used for future payments or adjustments.

Prorrata system

The proration mechanism activates when we make a change in the middle of a subscription cycle.

This mechanism corrects the old invoice (generating a credit note), so the invoice only reflects the time the old plan has been active. At the same time, it creates a new invoice, with the new plan pricing, and the remain time of the cycle.

• The calculation of credits for the unsubscribed add-ons/modules is made for the unused time period of the current billing term.
• The calculation of charges for the newly subscribed add-ons/modules is made for the remaining portion of the current billing period.

During subscription change, prorated credits or charges will be issued based on:

• The type of change (upgrade, downgrade, or quantity change)
• The status of the current term's invoice.