---
title: "Prorating Products"
slug: "prorating-products"
updated: 2024-01-16T18:21:22Z
published: 2024-01-16T18:21:22Z
canonical: "help.nexudus.com/prorating-products"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.nexudus.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Prorating Products

You can prorate products when selling them via plans and contracts to charge customers for their usage of the product on their first billing cycle rather than the full price.

*For example, a customer starts a contract on the 15th but is billed on the 1st of every month. The contract is prorated to charge them from the 15th to 1st of the following month, instead of the first month in full.*

*If you add a parking spot product worth $100 to their contract without proration enabled for the product, the customer will be charged $100, even if they only use that parking spot for two weeks instead of the whole month.*

*With product proration enabled for that product, they'll be charged half of the product price since they're only using that product from the 15th until the end of the month.*

You can prorate a product whenever it is sold through a plan or contract by default **or** prorate it only when necessary via plan, contract or proposal settings.

          You cannot prorate products without a plan, contract, or proposal that includes a prorated plan.

          

Proration relies on the **invoice period** of plans and contracts to determine how much to charge customers.

          Plans must also be [prorated](/v3/docs/prorating-plans) to allow product proration.

          

If the plans you use to create contracts and proposals don't have proration enabled, you won't be able to prorate products you include with them.

          Products proration applies to all new contracts that haven't been invoiced yet.

          

*For example, if you add a product to a new contract starting and invoiced in 5 days and you enable proration for that product after creating the contract but before it's been invoiced — the product will automatically be prorated on the first invoice for that contract.*

---

## Prorate Products by Default

You can prorate any of your products by default. If a product is included in any plan as a component, contract as a product invoiced alongside the contract.

![ProductProrationToggle](https://cdn.document360.io/4f9a66c7-3dbb-4052-97d8-5439302e1512/Images/Documentation/ProductProrationToggle.gif)

---

1. Log in to [dashboard.nexudus.com](https://dashboard.nexudus.com/) if you aren't already.
2. Click **Inventory > Product**.
3. Click on the relevant product.
4. Enable the **Always adjust the price of this product if invoiced alongside a prorated contract** toggle.
5. Click the **Save Changes** button.

Repeat the process for every other product that you want to prorate when included in plans, contracts, or proposals.

Now that you've prorated your products, you can include them in [plans](/v3/docs/adding-plan-components), [contracts](/v3/docs/understanding-recurring-products), and [proposals](/v3/docs/adding-products-to-proposals). The product will always be prorated if you add it to a plan or contract that's also prorated. After the customer's first prorated billing cycle, the product is charged its full price every following billing cycle or until the contract is canceled.

---

## Prorate Products as a one-off

You can also choose to prorate products only when needed within any prorated contract. This is an option if you only want to prorate products only in specific instances rather than by default.

1. Log in to [dashboard.nexudus.com](https://dashboard.nexudus.com/) if you aren't already.
2. Click **Finance > Contracts**.
3. Click on the relevant contract.
4. Click on the ****Products**tab.
5. Click on the product that should be prorated.
6. Enable the **Always adjust the price of this product if invoiced alongside a prorated contract** toggle.
7. Click the **Save Changes** button.

Repeat the process for every other product that you want to prorate in the contracts, plans, or proposals.