How the pro rata calculation feature works?

Summary:

1. Pro Rata Budget When Entering a Program

2. Pro Rata Budget When Exiting a Program

3. Pro Rata When a User's Budget Changes During a Period

4. Pro Rata for Pillar 1 Recurring Expenses (Federal Mobility Budget for Belgium 🇧🇪)

Our platform provides flexible pro rata budget calculations to ensure fairness and accuracy when employees join or leave programs, or when their budgets change during a period. This article explains how and when pro rata adjustments apply.

1. Pro Rata Budget When Entering a Program

An employee can enter a program in two cases:

• They are a new employee and are added to a group linked to a program.

• They are an existing employee whose group assignment changes to a group linked to a program.

When this happens, a pro rata budget is automatically calculated and assigned based on the date of entry into the program.

2. Pro Rata Budget When Exiting a Program

Employees can exit a program in two situations:

• Their account is archived, which removes them from the group linked to the program.

• They change groups from one linked to a program to one that is not.

Our system supports monthly, quarterly, and yearly budget distribution. If an employee leaves before the end of a period, a pro rata deduction may apply.

Archiving an Employee

• Admins selecting an archive date will see a simulation of the expected pro rata deduction.

• Hovering over the amount shows the full calculation details.

Group Change Impact

• When a group change leads to a program exit, admins can view a detailed pro rata explanation.

• Employees will see the negative adjustment in their dashboard representing the remaining unused budget.

Overspending and Pro Rata

If an employee has overspent before exiting a program:

• Admins will see exactly what amount was deducted and what remains outstanding.

• Overspending risks are clearly flagged in both group and user settings when pro rata exit is activated.

3. Pro Rata When a User's Budget Changes During a Period

Budgets can change due to:

• Custom budget updates

• Group budget changes

• Group reassignments

Custom Budget Changes

When an admin updates a user’s custom budget through the dashboard:

• Increase in Budget: The admin can choose one of three options:

  1. Apply from the beginning of the current period

  2. Apply from the start of the next period

  3. Apply from a specific date with pro rata calculation

In the third case, the admin selects the date via a calendar. (Past dates require manual adjustment.)

• Decrease in Budget: Only applies to the next top-up period. Past or current periods must be adjusted manually.

All changes are clearly visible to both admins and employees, with updated top-ups and visible calculations.

 

4. Pro Rata for Pillar 1 Recurring Expenses (Federal Mobility Budget for Belgium 🇧🇪)

Pillar 1 refers to recurring, non-reimbursable car leasing expenses under the Federal Mobility Budget (FMB). Employees may start or return a leasing contract mid-year, requiring prorated expenses.

Admin Controls

• When creating or editing a recurring expense, admins can activate:

  • Pro rata based on start date (first recurrence adjusted)

  • Pro rata based on end date (last recurrence adjusted)

• Simulations of the prorated values are shown immediately.

• Recurring expenses can only be updated if not yet reimbursed.

Employee Exit from FMB

When an employee exits the FMB program (via archival or group change), the final recurrence of their Pillar 1 expense will automatically adjust to reflect the exit date.