How to Handle Subscription Indexation When the Rate Is Not Yet Known
When subscriptions are billed quarterly in advance, the indexation rate may not yet be known when the invoice is issued. In these cases, the indexation can be applied retroactively once the correct rate becomes available.
When subscriptions are billed quarterly in advance, the indexation date may not align with the month in which the invoice is generated. As a result, the applicable indexation rate may not yet be known when the invoice is issued.
For example, if a subscription is indexed in August, but the August subscription is invoiced at the end of June, the indexation rate for August may not yet be available. In this case, the indexation should only be applied from August onwards and should not affect the months before the indexation date.
Once the indexation rate becomes available, you can invoice the difference retroactively. This ensures that the subscription amount is adjusted correctly from the indexation date and that the final billing accurately reflects the applicable rate.