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Proration Examples

Updated
The Goal: Understand how prorated membership dues are calculated for a new member based on the billing frequency (Annual, Semi-Annual, Quarterly, or Monthly) and the proration option selected on the membership type.

Before You Begin:

  • Know the billing frequency configured on the membership type (Annual, Semi-Annual, Quarterly, or Monthly).
  • Know which proration option is selected on the membership type (Semi-annual, Quarterly, Monthly before/after cutoff, No Proration, or Prorate Partial Years unchecked).
  • You can download the complete list of examples here.

Step-by-Step Instructions

Proration takes into consideration the billing frequency selected and the proration option. The examples below will provide an understanding of each proration option based on the new member's billing frequency- Annual, Semi-Annual, Quarterly, or Monthly.

Annual Billing Frequency

The table below displays the dues a new member will pay based on an annual frequency and the proration option selected.
 

For example:

Annual Dues = $1200 with semi-annual proration option selected

A new member joins in January, prorated dues = $1200.00. January - June, new members will be charged full membership dues.

A new member joins in July, prorated dues = $600.00. July - December, new members will be charged half of the membership dues.

Assume Renew in January $1200/year membership dues – Annual Billing Frequency
Join Month
January February March April May June July August September October November December
Semiannually 1200 1200 1200 1200 1200 1200 600 600 600 600 600 600
Quarterly 1200 1200 1200 900 900 900 600 600 600 300 300 300
Monthly - before days cutoff 1200 1100 1000 900 800 700 600 500 400 300 200 100
Monthly - after days cutoff 1100 1000 900 800 700 600 500 400 300 200 100 0
No Proration 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200
Prorate Partial Years Unchecked 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200

Semi Annual Billing Frequency

When semi-annual billing frequency is set, the table below provides an understanding of how membership dues are prorated. The table begins with a quarterly prorate option, as you cannot prorate a semi-annual to semi-annual.
 

Example:

Membership dues are $1200.00; proration option is set to Quarterly

New member joins in January (1st quarter), prorated price = $300.00

New member joins in April (2nd quarter), prorated price = $600.00

New member joins in August (3rd quarter), prorated price = $600.00

New member joins in November (4th quarter) prorated price = $300.00
 

Assume Renew in January $1200/year membership dues – Semi-annual Billing Frequency
Join Month
January February March April May June July August September October November December
Quarterly 600 600 600 300 300 300 600 600 600 300 300 300
Monthly - before days cutoff 600 500 400 300 200 100 600 500 400 300 200 100
Monthly - after days cutoff 500 400 300 200 100 0 500 400 300 200 100 0
No Proration 600 600 600 600 600 600 600 600 600 600 600 600
Prorate Partial Years Unchecked 600 600 600 600 600 600 600 600 600 600 600 600

Quarterly Billing Frequency

With quarterly billing frequency your members will pay 1/4th of the membership dues each quarter. The table below describes the amount they will be billed when you have setup to prorate. The option to prorate annually, semi-annually or quarterly are not available. The system will not prorate new membership fees if the proration interval is longer than the billing frequency.
 

For Example:

Membership dues $1200.00, prorate option Monthly-before cutoff

New member joins in January, prorated dues = $300.00. The new member will pay for the full quarter.

Member joins in February, prorated dues = $200.00. The new member will pay for 2/3rd of the membership dues for the quarter.

Member Joins in March, prorated dues = $100.00. The new member will pay 1/3rd of the membership dues for the quarter.

Member joins in April, this is a new quarter, prorated dues = $300.00. The new member will pay for the full quarter.

 

Assume Renew in January $1200/year membership dues – Quarterly Billing Frequency
Join Month
January February March April May June July August September October November December
Monthly - before days cutoff 300 200 100 300 200 100 300 200 100 300 200 100
Monthly - after days cutoff 200 100 0 200 100 0 200 100 0 200 100 0
No Proration 300 300 300 300 300 300 300 300 300 300 300 300
Prorate Partial Years Unchecked 300 300 300 300 300 300 300 300 300 300 300 300

Monthly Billing Frequency

With a monthly billing frequency, members are billed 1/12th of the annual membership dues each month. The table below describes dues payment based on proration options.
 

For Example:

Annual Membership Dues = 1200.00, monthly before cut-off date proration option.

New member joins in January, before cut-off date, monthly dues = $100.00

New member joins in June, before cut-off date, monthly dues = $100.00

 

Assume Renew in January $1200/year membership dues – Annual Billing Frequency
Join Month
January February March April May June July August September October November December
Monthly - before days cutoff 100 100 100 100 100 100 100 100 100 100 100 100
Monthly - after days cutoff 0 0 0 0 0 0 0 0 0 0 0 0
No Proration 100 100 100 100 100 100 100 100 100 100 100 100
Prorate Partial Years Unchecked 100 100 100 100 100 100 100 100 100 100 100 100

Common Pitfalls

  • Proration interval longer than the billing frequency: The system will not prorate new membership fees if the proration interval is longer than the billing frequency (for example, you cannot prorate semi-annual to semi-annual). Match the proration option to a shorter interval than the billing frequency.
  • Confusing the cutoff day: "Monthly - before days cutoff" and "Monthly - after days cutoff" produce different amounts for the join month. Confirm the cutoff day on the membership type before predicting a new member's first charge.

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