In most cases initial payments are charged when Linnworks's package is upgraded during a billing cycle.
A user's subscription plan is Linnworks Basic for £80/month inc. VAT and the subscription has begun on 01/06/2016.
A user has upgraded to Linnworks Standard (£180/month inc. VAT) on 11/06/2016 and has been charged the amount of £64 as the initial payment.
Calculation of the initial payment:
1) £80/30 days = £2.66 (cost of the Linnworks Basic per 1 day).
2) £2.66*10 days = £26.66 (the amount that has been charged for 10 days of Linnworks Basic usage).
3) Taking into account that customer has paid the full Linnworks Basic subscription fee (£80) until the next billing cycle, the following calculation applies: £80 - £26.66 = £53.34 (reserve until the next billing date).
4) £180/30 days = £6 (cost of the Linnworks Standard per 1 day).
5) £6*20 days = £120 (cost of the Linnworks Standard for 20 days).
6) Taking into account the reserve, following calculation applies: £120 - £53.34 = £66.66