Spacebring allows you to prorate invoices for the first and last subscription cycles.
How proration for the first cycle works
If the billing cycle anchor is set to "First day of the month" and the subscription starts on any day other than the first of the month, the first invoice and credits/day passes are prorated. This ensures customer subscriptions renew on the first day of the month, helping standardize renewals and simplify your revenue tracking and accounting.
To enable proration for the first subscription cycle:
Set "Billing cycle anchor" to the "First day of the month" option.
An administrator creates a subscription for a customer, or a customer signs up for a plan and selects the subscription start date.
If the subscription start date is other than the first of the month, the customer receives a prorated invoice and a prorated number of credits/day passes for the first incomplete period.
The subscription automatically renews on the first day of the month in all subsequent cycles (unless a subscription ends within the current billing period).
When customers sign up by themselves, and the start date isn't the first of the month, the subscription "Renewal" is automatically enabled for them and cannot be disabled. To set a subscription end date, customers must contact an administrator.
How proration for the last subscription cycle works
If the subscription end date creates a shorter final cycle, the invoice and credits are automatically prorated.
Administrators set an end date for the customer's subscription.
If a subscription end date creates a shorter final cycle, proration for the last subscription cycle automatically applies.
On the final subscription renewal, customers receive a prorated invoice and a prorated number of credits/day passes for the last incomplete cycle.
For weekly plans, the last subscription cycle is prorated whenever it is shorter than a full week.
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.