What Does Prorate / Prorata Mean?
You’ve probably seen the option to prorate when adding a membership to a member, hold, or cancellation, and wondered what it actually does. Here’s the rundown.
Prorating means adjusting the charge so that the member only pays for the part of the period they actually use.
- Member starts a monthly $100 membership on the 15th of a 30-day month.
- If you prorate, they’d only pay about $50 for that first half-month, then start paying $100/month on the next full cycle.
Without prorating, they’d still pay the full $100 for that partial month, which usually doesn’t feel fair to the member.
Prorating is a good way to keep things fair and transparent for members, they only pay for what they use.
It also helps avoid awkward conversations about overcharging or needing to issue refunds later.
When is Prorating Applied?
You’ll see prorating as an option in a few places:
- Starting a membership mid-billing cycle
- Cancelling a membership partway through a period
- Placing a hold during a billing period
When a member starts a new membership, prorating (prorata) will usually be applied any time there’s a difference between their start date and their first payment date, referred to as the upfront fee.
This ensures they only pay for the time they’re actually active before the first full billing cycle kicks in.
Prorating Settings
If you wish to control the default prorating behaviour, there are some settings in Advanced Configuration that you can adjust.
Here’s where to find them:
| Setting Location | Effect in GymMaster |
|---|---|
| Advanced Configuration > Member Holds > How Holds Affect Billing | Determines whether billing stays on the same schedule and is prorated, or shifts to a new billing date |
| Advanced Configuration > Membership > Prorate First Payment | Automatically prorates the first payment when a new membership is added |
| Advanced Configuration > Membership > Prorate Final Payment | Adjusts the final payment when a membership reaches its expiry date |
| Advanced Configuration > Membership > Prorate Cancellation Payment | Adjusts the final payment when a membership is cancelled |
Adjust these settings to match your business needs.
Common Questions this Covers
- When is prorating applied
- How does prorating work for partial months, or billing cycles
- How do I control prorating for first payments
- How do I prorate final, or cancellation payments
- How does prorating work with membership holds
- Why should I use prorating for fairness with members
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