---
title: "What are prorated allocations and how do they work?"
description: "Automatically adjusts allocation amounts for employees added mid-period."
url: https://help.tedy.app/en/articles/46-what-are-prorated-allocations-and-how-do-they-work
collection: "Allocations"
updated: 2026-11-10
language: en
alternates: [fr]
---

# What are prorated allocations and how do they work?

Automatically adjusts allocation amounts for employees added mid-period.

The **prorata option** automatically adjusts the amount of an allocation for employees who are added **mid-period** (e.g., during the year).

It’s especially useful for new hires, so you don’t have to manually calculate amounts based on remaining time.

* * *

## When does prorata apply?

Prorata works **only with recurring allocations** (annual, monthly, etc.).

Example:

-   An annual allocation for all employees (or a specific tag)
    
-   An employee is added during the year
    
-   The system automatically calculates the amount based on the remaining time in the period
    

Prorata does **not apply**:

-   To one-time allocations
    
-   To allocations created for a single employee
    

* * *

## How to configure prorata properly?

-   Create a **recurring allocation** (e.g., yearly)
    
-   Define who receives it (with or without a tag)
    
-   Enable the **prorata option**
    
-   Make sure employees have the correct tag when they are added
    

Important:  
You do **not** need to create a separate allocation for each new employee.

* * *

## What happens when a new employee is invited?

If the employee:

-   Has the correct tag
    
-   And is added after the start of the period
    

The prorated amount is automatically added to their account upon invitation.

* * *

## Where can I see the prorated amount?

Currently:

-   The prorated amount may **not appear in advance** in the transaction history
    
-   It will be visible once the allocation is generated/applied
    

If you don’t see anything in:

-   “pending allocations”
    
-   or transaction history
    

This is normal until the allocation is triggered.