The Prorated Contracts feature simplifies the enrollment process by automatically calculating the initial payment for a membership contract.
For example, if a member enrolls on the 15th of the month, and their payment due day is the 10th of every month, their initial payment is automatically prorated to cover the 15th through the 10th of the following month.
By calculating initial payments based on the precise enrollment date, this feature ensures members are billed accurately.
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Navigate to Setup > Inventory > Packages.
Next, edit an existing contract or create a new contract by clicking the Add Contract button. (Click here for more details on creating a new contract.)
Note: Monthly proration only applies to contracts, not packages.
To configure proration, head to the Renewal Details section, where proration settings are managed. Keep in mind the following requirements when configuring proration:
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Point of Sale (POS) Experience
You can sell a prorated contract as usual from the POS system in Member Manager. During To do so, during the sales process, you’ll edit the contract details by clicking “Edit/View Details”. HoweverKeep in mind, if a contract is prorated (The “Prorate First Month” box is checked), there are specific requirements to consider:
Payment Frequency: Only monthly contracts can be prorated, therefore this field is set to “1 Month(s)” by default and is disabled. Payment Frequency cannot be updated unless the “Prorate First Month” box is unchecked.
Contract Start Date: All prorated contracts must start on the date of the sale, therefore this field is set to the current sale date by default and is disabled. The “Contract Start Date” cannot be updated unless the “Prorate First Month” box is unchecked.
Free Payments: This field is set to “0” by default and is disabled. “Free Payments” cannot be updated unless the “Prorate First Month” box is unchecked.
Override Payment Due Day: This field can be edited and is set to the day indicated by Should you wish to override the “Payment Due Day” that was entered during the contract set-up. This , you can do so here by unchecking the “Prorate First Month” box. Keep in mind that this number refers to the day in the month payment is due, and therefore must be greater than “0”. For example, enter 1 for accounts that bill on the 1st of the month, 10 for accounts that bill on the 10th of the month, and so on. Member Manager will set up the contract with the prorated amount between “Contract Start Date” and the next “Payment Due Day”. This amount will be shown under “Due Today” and will include any initiation fees or down payments entered.
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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:
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