Example: Customer has renewed the service contract for "Home Telephone Line Service" and switched to a new service plan.
> Original service plan : $127 per month
> New service plan : $123 per month
> Effective date of the new service plan : 08/03/13
Bill Date : 05/04/13
All charges are billed in advance and the bill date is on the 5th day of each month. Customer is using AutoPay service.
1. Service charge from new service plan effective date ( 08/03/13 ) to bill cut off date (05/04/13) after switching plan, 29 days in total
a. Credit a prorated service fee at original $127 plan for the 29 days ( 08/03/13 - 05/04/13 ): Monthly service fee $ 127 ¡Ò 31 Days x 29 Days = $ 118.81 (CR)
b. Charge a prorated service fee at new $123 plan for the same period ( 08/03/13 - 05/04/13 ): Monthly service fee $ 123 ¡Ò 31 Days x 29 Days = $ 115.06
2. Service charge in advance for the following month, 06/04/13 - 05/05/13
( AutoPay account is billed on monthly basis *)
Charge 1-month service fee at new $123 plan: $ 123.00
* For non-AutoPay account, service fee is billed on quarterly basis. A 3-month service fee will be billed for the period 06/04/13 - 05/07/13.
Monthly service fee $ 123 x 3 months = $369.00