Prorating a plan

How to set up prorating on your plans.

When a plan has the option "Bill new contracts for this plan always on the same day of the month" enabled, it's common practice to adjust the first invoice for those plans based on how many days are left until the next billing day.

For example, if the plan's invoicing day is the 2nd of each month and a member signs up on the 16th, if you prorate the first invoice, then an invoice will be created for the remaining days from the 16th until the plan's next invoicing day (2nd). The next invoice will be created on the 2nd for the total price of the contract.

  You can ask Monika about Prorating a Plan

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Billing and prorating options

To prorate a plan

  1. If the side menu is not visible, click  

  2. In the side menu, click Inventory, then click Plans.

  3. Click the plan whose details you want to view, then click Prices.

  4. Select the prorating options you want to apply.

  5. Click Save changes.

plan_prorating_all_options.pngBilling and prorating settings

These are the options relevant to plan prorating:

Field

Description

Bill new contracts for this plan always on the same day of the month.

Enabling this option will prompt you to define a default billing day for this plan. All new contracts for this plan will be billed on this day by default. You can still change this day on a contract-by-contract basis.

Adjust the first invoice based on how many days are left in the first cycle.

Sets the maximum number of days to prorate. In most cases, you want to make this field be 30 days for monthly plans or 365 for yearly plans.

Use a different day to adjust the first invoice than the billing day.

By default, prorating is calculated based on the number of days between the start date of the contract and the next billing day. You can use this field to use a different day instead.

Adjust the last bill based on the day members leave contracts for this plan.

Enable this option if you want to also adjust the last invoice based on how many days are there between the cancellation date of the contract and the last billing day.

 
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