Future credit and bump date prorating

In addition to changing the price a customer is charged in monthly increments, special prorating rules also offer Future Credit and Bump Date prorating.

Future credit

Future credit prorating applies any time-based discounts to next year's dues and charges full credit for this year's dues. For example, an organization may charge full annual dues no matter when in the year a customer joins, but give a time-based discount for new members joining after the sixth membership month.

Bump date

Bump date prorating charges a full annual fee no matter when in the membership year a customer joins, but after a named cutoff point, advances the paid thru date to the end of the next billing term.

Future credit and bump date examples

Base

Ammt/Add'l Unit

Effect

 

1.0

The customer is charged the full annual rate.

 

0.5

The customer is charged 50% of the annual rate.

F

0.5

The customer is charged the full annual rate but will receive a 50% discount on next year's rate.

B

1

The customer is charged the full annual rate, but the paid through date will be set to the end of next year's term, not this year's term.

B

1.5

The customer is charged 1.5 times the annual rate and the paid through date will be set to the end of next year's term, not this year's term.

Note: If you bill once per year, but want to decrease the amount charged a new customer on a quarterly basis, define a 12-month prorating rule and then use identical line entries for each month in a quarter. For example, the line entries for months 1, 2, and 3 would be identical.

To define special prorating

  1. From Billing, select Set up module > General options to open the Set up general options window.
  2. Click Edit.
  3. Select the Annual option under Billing Time.
  4. Select the Special Prorating option under Prorating.
  5. Click Save.
  6. Select Billing > Set up module > Products.
  7. Click Prorate Rules to open the Prorating window.
  8. Click New.
  9. (optional) In the Product field, rename the rule.
  10. In the Type field, enter the number of months in the billing period.
  11. In the Description field, enter a description of the prorating rule.
  12. (optional) Enter the Base Amount to reflect second-year prorating or an extension of the term to the next year or fixed term.
  13. Enter a multiplier in the Amt/Add'l Unit field. For example, 50 percent should be entered as .50.

    14. Note: The number of lines in the table must equal the number of months specified by the rule type.

  14. Click Save.

To define future credit prorate pricing

The following example shows a normal prorating setup in which the reduction in the rate is postponed until the second term. If a customer joins during months 4-6, the customer will be billed the full amount the first year and 75% the second year.

  1. From Billing, select Set up module > Products to open the Set up products window.
  2. Click Prorate Rules to open the Prorating window.
  3. Click New.
  4. In the Type field, enter 12 as the number of months in the billing period.
  5. In the Description field, enter New Customers as the description.
  6. Enter a multiplier of 1.0 for months 1-3 in the Amt/Add'l Unit field.
  7. Enter F in the Base Amount field and a multiplier of .75 for months 4-6 in the Amt/Add'l Unit field.
  8. Enter F in the Base Amount field and a multiplier of .50 for months 7-9 in the Amt/Add'l Unit field.
  9. Enter F in the Base Amount field and a multiplier of .25 in the Amt/Add'l Unit field for months 10-12.
  10. Click Save.

To advance the billing term with Bump Date prorating

In the following example, no prorating occurs until month 7 when a new customer is charged half of the rate. Customers joining in months 11 or 12 pay the full amount and will receive services for a longer term (13- and 14-months respectively).

  1. From Billing, select Set up module > Products to open the Set up products window.
  2. Click Prorate Rules. The Prorating window opens.
  3. Click New.
  4. In the Type field, enter 12 as the number of months in the billing period.
  5. In the Description field, enter New Customers after June 30th as the description.
  6. Enter a multiplier of 1.0 for months 1-6 in the Amt/Add'l Unit field.
  7. Enter a multiplier of 0.5 for months 7-10 in the Amt/Add'l Unit field.
  8. Enter B in the Base Amount field and a multiplier of 1.0 in the Amt/Add'l Unit field for months 11-12.
  9. Click Save.