The Prorate Contracts feature is designed to offer flexible billing options for members who join mid-billing cycle. If you choose to bill all your members on a specific date of the month, for example all billing is on the 1st, you can setup your contracts to automatically pro-rate the first payment, so you are able to charge your members from the sign-up date until the 1st of the month. This feature allows you to charge members only for the portion of the billing period they use. By calculating dues based on the exact number of days a member is active, this feature ensures that members are billed accurately, promoting trust and satisfaction.
...
Navigate to Setup > Inventory > Packages.
Edit an existing contract or create a new one by clicking the Add Contract button.
Note: Monthly proration only applies to contracts, not packages.
You can configure the contract as usual, except for the Renewal Details section, where proration settings are managed. Click here for more details on creating contracts. Keep in mind the following exceptions when configuring proration:
...
If an initiation fee and down payment are set, the payment schedule will display a pre-payment that includes the prorated amount, the down payment, and the initiation fee. For example, if a contract is configured for 24 payments, the schedule will show a pre-payment that combines these amounts, followed by 24 additional payments.
Note: If you want the pre-payment to count as one of the 24 payments, set the "Number of Payments" to 23 and recalculate the payment schedule using Save & Update Payment Schedule.
In the example below, using the contract details above (contract is prorated, $10 initiation fee, $10 down payment set to "Apply to All"), starting on 7/19 with the payment due on the 1st, the pre-payment amount is broken down as follows:
...
Members can click “Join Now” and proceed through purchasing the contract. Click here for an overview of the Member Portal and details on purchasing contracts.