#eoghanobrien_best-practices
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jaunty pelican
Hello! Sounds like you're looking for our prorations documentation: https://docs.stripe.com/billing/subscriptions/prorations
jolly iris
I'm using this right now, this can create a negative amount though right, or a scenario where we pay the customer, how do I deal with that?
jaunty pelican
Not sure I understand, can you give me a specific example?
jolly iris
Okay
We have price IDs of different amounts
price_123 is 29.00 and price_345 is 69.00
we have a customer on a subscription plan using price_345
they want to downgrade their plan to price_123
They downgrade immediately after purchasing price_345
now we owe them 40.00
how does Stripe handle that credit
jaunty pelican
The 40.00 is added to the Customer's credit balance and will be used on the next Invoice for that Customer: https://docs.stripe.com/billing/customer/balance
jolly iris
got it, so we never send the customer any payout, they can only apply that credit to future products?
jolly iris
so at the end of the cycle, their next payment would be 0.00 but they'd still have a credit of 11.00
jaunty pelican
Correct.
jolly iris
their next payment would be 18.00 and their credit would be 0.00
jaunty pelican
Yep.
jolly iris
and all of this is automatically handled via the Stripe credit balance system
jaunty pelican
Yes.
jolly iris
If a customer decided they wanted the difference back as a refund, is that possible?
jaunty pelican
You can decide to do that if you want, yes. You can modify a Customer's balance at will: https://docs.stripe.com/api/customers/update#update_customer-balance
So you would get the money back to the Customer and then adjust their balance accordingly.