Spacebring allows you to prorate invoices for the first and last subscription cycles.
How proration works
For the first subscription cycle, the invoice and credit number are prorated if the member's subscription starts not on the first day of the month. This way, all subscription renewals happen on the first day of the month, making it easier to control revenue and manage accounting.
For the last subscription cycle, the invoice and credit number are prorated if the member's subscription end date is set in a way that makes the last subscription cycle shorter than the entire cycle.
How proration coefficient is calculated
The calculation of the proration coefficient depends on the subscription cycle.
Subscription cycle | Coefficient calculation | Example |
Month | Days remaining in the month / total days in the month. | Subscription starts on Jan 15 (today). Since January has 31 days and 14 days have passed, the coefficient is (31-14) / 31 = 0.548. |
3 months 6 months Year | Days remaining in the current period / total days in the past period. | 3-months subscription starts on Mar 20 (today). Since 12 days remain in the current period and the past period has 90 days, the coefficient is 12 / 90 = 0.133. |
The proration coefficient is then multiplied by the full membership price. Any applicable taxes you’ve set are not included in this amount.
Both the invoice total and any applicable credits and day passes are adjusted proportionally based on the proration coefficient.
How proration for the first subscription cycle works
To enable proration for the first subscription cycle, follow these instructions:
1. Open Location settings by clicking the menu (...) next to the location name.
2. Navigate to Billing > "Subscriptions" tab > select "First day of the month" option as the "Billing cycle anchor".
Note that a subscription inherits its billing cycle anchor at the moment of creation. Changing this setting affects future subscriptions but not existing ones. Understand the billing cycle anchor
3. Create plans.
4. An administrator creates a subscription for a user, or a user signs up for a plan and selects the subscription start date.
On the subscription start date, users automatically receive a prorated invoice and a prorated number of credits/day passes for the first incomplete period. Unless a subscription’s end date falls within the current billing period, it automatically renews on the first day of the month at the start of the next billing cycle.
When users sign up themselves and the start date is not the first of the month, the "Renewal" property is automatically enabled. To set a custom end date, users must contact an administrator.
How proration for the last subscription cycle works
Proration for the last subscription cycle is automatically applied when a subscription ends before completing a full billing cycle.
Administrators can create subscriptions for a user or company and set an end date.
On the final subscription renewal, users receive:
A prorated invoice for the last incomplete cycle.
A prorated number of credits/day passes corresponding to that period.
For weekly plans, the last subscription cycle is prorated whenever it is shorter than a full week.