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, open Spacebring and follow the next steps:
Go to Location settings page by pressing the menu (...) near the location name > Billing > "Subscriptions" tab.
Select the "First day of the month" option as the "Billing cycle anchor". Understand the billing cycle anchor
Note that a subscription inherits a billing cycle anchor at the moment of creation. Changing the billing cycle anchor will affect future subscriptions but not the existing ones.
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.
5. On the subscription start date, users receive a prorated invoice and a prorated number of credits for the first incomplete month.
6. Unless the subscription end date is set within the ongoing month, the subscription renews on the first day of the month in all subsequent subscription cycles.
When signing up for a plan by themselves, the "Renewal" property is automatically turned on for the user's subscription if the start date is other than the first day of the month. To set their subscription's end date, the user needs to contact the administrator.
How proration for the last subscription cycle works
Proration for the last subscription cycle automatically applies if the member's subscription end date is set in a way that makes the last subscription cycle shorter than the entire cycle.
Administrators create subscriptions for a user or company and select the desired end date in it.
With the final subscription renewal, users receive a prorated invoice and a prorated number of credits for the last incomplete cycle.
For weekly plans, invoice proration applies if the end date is set so that the last subscription cycle is less than 7 days.