Understanding Invoice Alignments & Prepayments
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Invoice alignments make sure you're billed the correct rate for the exact days you had a particular plan or service.
When you first order iiNet services, you make a prepayment for your monthly plan fees.
This article will explain invoice alignments and prepayments in more detail.
Your billing period begins on your anniversary date
When your first iiNet service is ordered, your "anniversary date" is set roughly 14 calendar days later. This is the date your iiNet bills are typically due each month. As a rule, billing anniversary dates don't get set for the 29th, 30th or 31st days of a month - only days 1 to 28 are used.
The billing period for your iiNet services is also based on your anniversary date (e.g. Billed period: 04 JAN 2017 - 04 FEB 2017). If you change plans, billing is aligned to the same billing period.
All iiNet services are billed one billing period in advance
As per the Billing Policy in our Customer Relationship Agreement, iiNet services are billed in the following ways:
- Recurring or fixed charges such as monthly plan fees are billed in advance. One month's pre-payment for services is taken immediately after your order is placed, but this prepayment stays on your iiNet account until your services are active and ready to be billed.
- Variable charges such as phone calls are billed in arrears, which means they are paid after the charges have accrued (after all, we can't know which phone calls you've made until after you've made them!).
When you change plans, you'll receive a credit on your iiNet account for any unused plan fees that you paid in advance. You will then be charged in advance at the rate for your new plan.
Example: The first invoice after placing an order (pre-payment)
The example below shows the initial setup charges for an internet service that was just ordered, as well as the one month's prepayment that's taken immediately whenever an order is placed.
- A) Details about the payment that was taken from your nominated bank account or credit card
- B) One month's pre-payment for your ordered plan
- C) One-off setup charges such as broadband activation, modem purchases and hardware delivery
Example: The second invoice after placing an order (alignments)
The example below shows the charges for an internet service that has now been activated and billing has commenced. Credit from the one month's prepayment is used to balance one month's worth of charges now that the service is active.
- A) Credit from pre-payment will be used to balance some of the charges on this invoice, so you're not paying for any days before your broadband service was activated
- B) One Full Monthly Charge for the next billing period (one billing period in advance)
- C) One Full Monthly Charge for the current billing period
- D) In this example, the broadband service was active for 11 days before the beginning of the current billing period. A pro-rated charge covers the cost of these days
Please note: If you're trying to follow along with a calculator, it's worth noting that our billing system calculates fees right down to the second. It's unlikely that a service would be activated at exactly 12AM, so while a plan may cost $1.97 for each full day of the year, less than that would be charged for the day a service was activated.
Why have I only received part of my plan value?
This can happen when you change plans, or activate a new service partway through your billing period.
If you've been billed for a part month charge for your plan, then you'll receive a proportionate part of your plan's monthly value for data or calls, etc.
For example, if you've been billed for 10 days worth of your new broadband service with an included Netphone, you'll receive 10 days worth of its included monthly data and call value.
This is known as "pro-rating", and it means that you'll pay the correct rate and receive the correct value for the exact days you had each plan. Once your next billing period begins, you'll receive the full monthly value at the full monthly price.
Pro-rating does not affect unlimited or all-inclusive allowances, such as our Liimitless broadband data plans. After all, you can't divide infinity!
What happens to fees I've paid in advance if I change plans or cancel a service?
When you change plans or cancel a service, any amount you've paid in advance for that service is credited back to your account.
- If you've changed plans, you'll then be billed in advance at the rate for your new plan. Any remaining credit will be used to balance charges on your next invoice.
- If you're cancelling one service but you still have others, the credit will be used to balance charges on your next invoice.
- If you're closing your account, any remaining credit after your final invoice can be refunded back to your nominated bank account or credit card.