Proration
Type: noun
Pronunciation: /proh-ray-shun/
Also spelled or known as: Pro Rata Allocation
Plural: Prorations
Related: Royalty Allocation
What does Proration mean? The allocation of payments, costs, royalties, or other amounts proportionally according to an agreed formula or period of time.
Proration is commonly used when dividing royalties among co-writers, allocating subscription revenue, or calculating partial-period payments.
Proration synonyms: Pro Rata Allocation, Proportional Allocation, Proportional Distribution
Example sentence: “The publisher calculated each songwriter’s payment through proration.”
PRE-ORDER RECORDING BUSINESS DICTIONARY