# Prorating bucket hours

The decision not to prorate bucket hours is based on several important considerations:

1. Nature of Bucket Contract Lines: Bucket contract lines typically offer a fixed number of hours or units for a set price over a specific period (e.g., monthly). The full allotment is usually available from the start of the billing period.

1. Upfront Availability: When a customer purchases a bucket contract line, they often expect to have access to the full amount of hours immediately, regardless of when in the billing cycle they start using it.

1. Simplicity and Predictability: Not prorating bucket hours keeps the billing simple and predictable for customers. They know exactly how many hours they have available for the period.

1. Flexibility for Customers: Customers might use their bucket hours unevenly throughout the month. Some might use most hours at the beginning, while others at the end. Not prorating allows this flexibility.

1. Overage Charges: The billing system typically charges overages when customers exceed their bucket. If you prorated the bucket hours, you might need to also adjust when overage charges kick in, which adds complexity.

1. Industry Standard: Many service providers don't prorate bucket contract lines as it's often seen as a benefit to the customer to have full access from day one.

1. Administrative Simplicity: Not prorating bucket hours simplifies the billing logic and reduces the potential for errors in calculations.

1. Customer Perception: Customers often perceive getting the full bucket as more valuable, even if they start mid-cycle. It can be seen as a gesture of good faith from the service provider.

However, it's worth noting that the decision to prorate or not can depend on specific business models and customer agreements. Some businesses might choose to prorate bucket hours in certain situations, such as:

- For very expensive or large bucket contract lines
- When explicitly agreed upon with the customer
- In cases where the billing period is significantly shorter than usual

In the end, the choice often comes down to balancing fairness, simplicity, customer satisfaction, and business operations. The approach of not prorating bucket hours tends to favor simplicity and customer satisfaction in most cases.
