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Pro-rate Options for Membership Purchases

What are the options for prorating a membership rate during the purchase process?

Membership prorate options are controlled in Tools -> System Settings -> Membership Settings

There are three options for prorating:

Option A: Full amount, next billing date is the billing day in the next billing cycle
This means that if a membership is opened on one of these days, the member will be charged the full monthly rate.  For example, if you set these fields to 1-14 days, any membership opened without these date ranged will be charged the full monthly rate. If you prorate for the whole month other than the 1st of the month, then these fields will be set to 1-1.

Option B: Prorate amount, next billing date is the billing day in the next billing cycle
This means that if a membership is opened on one of these days, the member will only be charged the prorated (portion) of the monthly charge. For example, if you set these fields to 16-31, any membership opened on one of these days will only be charged the partial rate for the month.  The next month's billing date will be the full rate.  If you prorate for any day after the first of the month, these fields will be set to 2-31.

Option C: Prorate amount, plus next full month fees, next billing date is the billing day in the second billing cyctle
This means that if a membership is opened on one of these days, the member will be charged the prorate amount for the remainder of the current month and all of next month's dues. The next scheduled payment would be two months after the membership is opened. For example, if these fields are set to 16-31, a membership opened on the 16th would charge a portion of the current month and all of next month. A membership opened on the 15th would charge the full monthly rate.

There is no need to use all three of these options. Some typical examples include:

A: 1-31 (no prorate at all, always charge the full monthly rate)
B: DO NOT USE
C: DO NOT USE

A: 1-15
B: 16-31 (partial month prorate)
C: DO NOT USE

or
A: 1-1
B: 2-31 (partial month prorate for anything after the 1st)
C: DO NOT USE

or
A: 1-15
B: DO NOT USE
C: 16-31 (partial month prorate plus next month's dues)

or 
A: 1-1
B: DO NOT USE
C: 2-31 (partial month prorate for anything after the 1st, plus next month's dues)

The option that you are not using will be set to DO NOT USE.  There are many different scenarios for using prorate. If you need assistance with setting your options, please feel free to call support at 732-982-1624 or email us at support@shapenetsoftware.com.

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