Example: Customer installed "Home Telephone Line Service" on 11/01/13. The monthly fee is $98 with 51.03% discount off throughout the contract period. All charges are billed in advance and the bill date is on the 5th day of each month.
First Bill Date : 05/02/13
1. Service charge from service start date (11/01/13) to first bill cut off date (05/02/13), 26 days in total
a. Charge a prorated service fee for the 26 days: Monthly service fee $ 98 ¡Ò 31 Days x 26 Days = $ 82.19
b. Credit a prorated service fee discount for the same period: $ 82.19 x 51.03% = 41.94 (CR)
2. Service charge in advnace for the following quarter, 06/02/13 - 05/05/13
( Non-AutoPay account is billed on quarterly basis *)
a. Charge a 3-month service fee in advance : Monthly service fee $98 x 3 Months = $294
b. Credit a service fee discount for the same period: $294 x 51.03% = $150.03 (CR)
* For AutoPay account, service fee is billed on monthly basis.
a. Charge a 1-month service fee for 06/02/13 - 05/03/13 : $98.00
b. Credit a service fee discount for the same period: $98.00 x 51.03% = $50.01 (CR)