When billing subscriptions on a quarterly basis, it is important to consider cases where the subscription indexation date does not align with the billing month at the beginning of the quarter.
When billing subscriptions on a quarterly basis, there may be instances where the subscription indexation date does not align with the billing month at the beginning of the quarter.
For example, if the subscription index date is in August, but you are billing for August at the end of June, the index rate may not be known yet. In this case, the indexation should only apply starting from August and not for the period of July.
In order to address this situation, you will need to invoice the difference retroactively. This means that once the index rate for August is known, you will need to adjust the billing accordingly to reflect the correct amount for that period. By doing so, you can ensure that your billing is accurate and aligned with the subscription indexation dates.