Creating a Proration Policy

To create a proration policy:

Click the Proration Policies tab.
Click New or New Proration Policy.
Enter a proration policy name.
Select the Automatically Assign to New Contracts checkbox if you want this proration policy to be assigned to new contracts by default. See Using a Default Proration Policy for more information. You cannot select this checkbox for more than one proration policy.
Choose the calculation method for the proration policy.
Select Set Final Period to Remainder from First if you want Billing Central to adjust a contract line item's final period value to be the residual amount from the first period. See Adjusting Final Period Value to Remainder from First Period for more information.
Click Save.

For information about how to assign a proration policy to a contract, see Assigning a Proration Policy to a Contract and Assigning a Proration Policy to Multiple Contracts.

Using a Default Proration Policy

Selecting the Automatically Assign to New Contracts checkbox on a proration policy makes that the default policy. If you do set a proration policy as the default, note that:

When creating a new contract, the default proration policy is assigned unless you select an alternative.
If a new contract is created automatically from an opportunity and there is no field mapping for the Proration Policy field, or there is a field mapping but it is left blank on the opportunity, the default policy is assigned.
When creating a renewal or change request, the proration policy on the existing contract is copied to the new contract. The default is not assigned.
When editing a contract, if you change or delete the value in the contract's Proration Policy field your edit persists. The default is not assigned.

If you do not set a default proration policy, the Proration Policy field is not completed automatically for new contracts.