Are you confused after you received an invoice from Timely with lines like these?
These invoices can be a bit confusing. So let me try to explain with a real example:
When you purchase a Timely standard account you pay $14 in advance for the next 30 days per user. On your first invoice (shown below), you paid only $14 (the price of one user, for one month).
Whenever you add more users, you will be charged for them, but there won't be a new invoice generated for each added user. Instead our billing system will add them to the next scheduled invoice, so you actually pay for these users after the month has passed instead of in advance. This is to keep the billing cycles predictable, so it's easier for you to keep track (and so we don't flood your inbox with invoices). Hence the next invoice would add the cost of these users.
However, as you add new users at different times during the billing period, the invoice quickly gets a lot of confusing lines. Here's an invoice where 5 extra users where added at different times during the first billing period:
Intuitively you might expect that the extra amount added to the invoice should be 5 x $14 = $70 (since you've already paid for 1 out of 6 users for the first month), making it a total of $84 + $70 = $154. However – since we want things to be as fair as possible – that is not the case.
When extra users are added during the billing period, we don't charge a full $14 for them. Our billing system automatically calculates the correct price and gives a 'discount' based on the elapsed and remaining time in the billing period. This is calculated down to the exact cent.
To illustrate with a little math:
- When you added your payment information you were charged a full $14 for the billing period of 2016/06/26 to 2016/06/26.
- Later the same day you added a new user ($14) to your account, but since some time had already passed (1 hour, 34 minutes to be exact) the cost of this user added to the invoice wasn't a full $14.
- Instead the invoice (#2910-9065) got updated with a new line: "$27.94 – Remaining time on 2 x Standard after 26 Jun 2016". This line is the cost of two users from the moment you added the second user until the next invoice is scheduled. You'll notice that instead of $28 ($14 x 2), you were charged $27.94. This is because 1 hour and 34 minutes amounts to $0.03 per user, hence $28 - (0.03 x 2) = $27.94.
- Immediately above that line you'll see a line with a negative value (-$13.97). This is a credit for the remaining time that you had already paid the for your first user, because this user's cost is now included in the $27.94 line.
- The same goes on for the rest of the billing period, as you've added more users to your account (and our billing system has applied the same principle of recalculating the invoice).
The invoice you've received simply includes the cost of the extra users, minus the time they weren't active on your Timely account.