The Prorated Contracts feature in Member Manager simplifies the enrollment process by automatically prorating the initial pre-payment for a new 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 pre-payment is automatically prorated to include the 15th of the month through the 9th of the following month.
By calculating pre-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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After entering all required fields, scroll to the bottom and click either “Save” or “Save and Exit” to save the contract.
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Point of Sale (POS) Experience
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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 12 payments, the schedule will show a pre-payment that combines these amounts, followed by 12 additional payments.
Note: If you want the pre-payment to count as one of the 12 payments, set the "Number of Payments" to 11 and recalculate the payment schedule using Save & Update Payment Schedule.
In the example below, using the contract details above where the contract is prorated, the Initiation Fee is $50, the Down Payment is $100 applied to the pre-payment, and the contract starts on July 26, 2024 with payments due on the 15th of every month, the pre-payment amount is broken down as follows:
Prorated amount: $115.48
Initiation Fee: $50.00
Down Payment: $100.00
Tax: $13.27
Total pre-payment: $278.75
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After finalizing the contract details and capturing the member’s signatures, you will be directed to the “Items in Cart” screen. In the “Checkout” section, the original item amount is deferred; this becomes “payment 1” and is due on the set Payment Due Day and displayed as “Deferred Payment”. The Checkout section also shows the Down Payment, the Initiation Fee and the prorated amount labeled as “Prorated First Month”.
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Members can purchase prorated contracts through the Member Portal using the "Enroll" function. Discounted contracts are clearly marked, with the original price shown as strikethrough and the discounted price displayed beneath it.
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When you click on the contract, a detailed view will be displayed. This view clearly shows the prorated amount, accompanied by a "P" tag or tooltip to indicate that the contract is prorated.
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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.