How Prorated Billing Works for Users and Sub-Accounts in Videospan

Modified on Tue, 11 Nov at 8:27 AM

How Prorated Billing Works for Users and Sub-Accounts in Videospan

Videospan automatically adjusts billing when you add or remove users or sub-accounts during an active subscription term.

This ensures you only pay for what you use — and receive credits when licenses are reduced mid-term.


Overview

Videospan’s pricing is based on the number of licensed users and sub-accounts under your organization.
When your account changes during a subscription period, prorated billing keeps your plan accurate and fair:

  • Additions → Immediately billed for the remaining portion of the term.

  • Removals → Receive an automatic credit for the unused portion of the term.

All changes are reflected in your next invoice or credit balance.


How It Works

1. Adding Users or Sub-Accounts

When you add new users or sub-accounts during an active billing term:

  • Videospan calculates the remaining duration of your current term.

  • The added seats or sub-accounts are billed immediately for that prorated period.

  • The new users gain instant access to the platform, templates, and brand assets.

Example:
If you add a new user halfway through an annual term, you’ll be billed for 50% of the annual rate for that user.


2. Removing Users or Sub-Accounts

When users or sub-accounts are removed mid-term:

  • Videospan automatically calculates the unused balance of that seat or account.

  • A credit for the prorated amount is applied to your organization’s billing account.

  • The credit will automatically offset future invoices or renewals.

Example:
If you remove a sub-account with three months remaining in your annual term, you’ll receive a credit equal to 25% of that sub-account’s annual cost.


3. Credit Application

Credits appear in your Billing Summary and are automatically applied to:

  • Future user or sub-account additions.

  • Renewal invoices at the end of the term.

  • Any upgrades or plan changes made during the period.

Credits are non-refundable but will automatically reduce upcoming charges.


When Changes Take Effect

ActionTimingBilling Impact
Add user/sub-accountImmediateBilled prorata for remaining term
Remove user/sub-accountImmediateCredit applied for unused balance
Renewal or upgradeAt next billing cycleCredits auto-applied

Best Practices

RecommendationWhy It Matters
Plan team growth ahead of renewalsReduces mid-term adjustments
Remove unused accounts promptlyMaximizes prorated credit value
Review billing summary monthlyKeeps subscription data accurate
Maintain separate sub-accounts for departmentsEasier to track and adjust as teams change

Summary

  • Adding users or sub-accounts triggers immediate prorated billing for the time remaining in your term.

  • Removing users or sub-accounts issues a credit for the prorated unused balance.

  • All changes are automatically tracked and applied in your billing dashboard.

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