Proration ensures fair billing when customers make changes to their memberships mid-cycle, such as changing the billing date, or starting a subscription partway through a billing period. Proration also controls the amount a customer will be charged if they sign up for a new membership half way through the billing cycle.
Proration is governed by the settings you have decided to use, these are split into Global and Local.
Global settings
navigation: Settings > Bookings & Timetable
Subscriptions proration + minimum proration amount
Renewals happen on a specific day in the month
deferred proration
Member can select renewal day
Local Product Settings
navigation: Products > Passes & Subscriptions > select the Subscription > Cog icon > Edit > Options
Renewals happen on a specific day in the month
Member can select renewal day
Minimum pro-rated amount
Proration part 1. Global settings
Global settings
navigation: Settings > Bookings & Timetable
Subscription proration
The minimum amount to charge when proration is applied. This is also controllable at the individual product pricing option level.
This Global control allows you to prevent a membership been prorated for under the value of a day pass.
Renewals happen on a specific day in the month
Enable to allow setting a specific monthly renewal date, e.g. 1 for the 1st of the month. Enabled at an individual pricing option level.
Member can select renewal day
Enable to allow members to select their renewal day of the month.
This can also be be enabled at an individual pricing option level.
Important note. If the option “Renewals happen on a specific day in the month” is selected and “Member can select renewal day” is also selected; the logic dictates that when a customer signs up for a membership they will pay a prorated amount to the stated renewal date, after which they can change their renewal day. They cannot chose their renewal date at time of purchase.
Proration part 2. Local Product settings
Global settings
navigation: Products > Passes & Subscriptions > select the Subscription > Cog icon > Edit > Options
These options mirror those found in the Global settings, allowing you to customize Subscription offerings to a more granular level.
Renewals happen on a specific day in the month
Enable to allow setting a specific monthly renewal date for the product, e.g. 1 for the 1st of the month.
Defer initial proration
the subscription will not prorated at time of sale, rather on the first renewal date. This can be used as a tool to reduce churn.
Member can select renewal day
Enable to allow members to select their renewal day of the month.
Minimum pro-rated amount
The minimum amount to charge when proration is applied.
Adjust this on the product level based on the products value.
Part 3. How proration shows on a customer account/purchase
Example 1. POS
The example below is where the product (Monthly Membership - EFT) has had “the renewals happen on a specific day”, and the “day selected” is the 1st of the month. In the example the date of purchase is the 10th of the month. Therefore the system has prorated the first months Membership dues to be a reduced value.
Note: The Membership initiation fee is not included in this calculation as it is considered a different line item.
navigation: Point of Sale > Select product you have edited with a “renewals happen on a specific day” > assign a customer
Example 2. Customer Order history
navigation: Customer > Orders > View Transaction
In this example “the renewals happen on a specific day” feature has been toggled on, and the “day selected” feature has been added as the 1st of the month.
A customer has purchased a Monthly Membership and the pro-rated amount has been charged to the card. The amount removed by proration is shown as a discount value and a discount %.
This discount amount will also be shown in line on the customers Receipt.
Example 3. Customer account card
Proration will also be displayed on a customers subscription card in their Passes, Packs & Subscriptions.
The example below is where the product (Monthly Membership - EFT) has had “the renewals happen on a specific day” edited, and the “day selected” as the 1st of the month. Because the system has been setup with the Minimum pro-rated amount as $25.00 the proration logic has created a minimum charge of $25.00.
Without the Minimum pro-rated amount toggle being selected, the value would be $12.00.
