Proration is a billing feature you can use for members who join your space after the billing date. It allows you to calculate a fair amount for the partial period during which they used your services.
When you create a monthly plan, in its Billing settings, you can decide whether the system should prorate it. In this article, you will see what happens to memberships under a Billing Plan with proration enabled.
Before you start
Please note that configuring proration settings is not available if you have set your Billing Period Start Date to "Member Start Date" under Settings > Billing > Billing Rules:
When is an invoice prorated?
OfficeRnD will prorate recurring membership fees if a new sign-up does not fall within your specified billing date each month. If your regular monthly billing occurs on the anniversary date a member signs up, their invoices will not be prorated.
For example, if a member's billing date is the 1st and their membership ends on the 20th, OfficeRnD will prorate their last invoice and charge them for 20 days of usage instead of the full month.
Configure proration settings
You have two options for controlling how membership start dates are prorated when they don't match the recurring billing date: prorating the first or second invoice.
You can configure this under Settings > Billing > Invoicing. Open the proration drop-down menu and select one of the following:
First invoice: This option will prorate the membership's first invoice.
Second invoice: This option is useful when you want to have a minimum commitment of one month for members who start a new membership. It will bill the member for one full month and prorate the second invoice, as in the first option. Please note that this option applies only to new customers. Upgrades and downgrades are handled the same way as the First invoice option.
For the second-month proration to work:
The membership's start date must match the member's or the company's start date.
A first invoice must be issued to the member or company before the second invoice can be prorated.
The preview will not show proration until at least one invoice for the membership is created.
The first issued invoice will have a period that matches the start date and ends next month.
The subsequent invoice will be prorated accordingly, based on your organization's billing date (billing period start date).
For example:
The company's start date is 24/11/2025.
Their membership began on 24/11/2025.
The first invoice will be for 24/11/2025–23/12/2025 and will apply the membership fee without proration.
The second invoice will cover the period 01/12–31/12 and will prorate the membership.
Proration example
To illustrate how proration works in general, let's look at the following example. It is based on the specific proration configuration as seen in the screenshot below:
The first or second membership invoice is being prorated according to your settings—in this case, only the first invoice is prorated.
When a membership is terminated (either due to an upgrade or downgrade or because the member is leaving), the last days of the membership are also prorated if the termination date is not the day before the billing date.
We calculate quantity based on the Proration setting (Current Month Length or Average Month Length) under Settings > Billing > Invoicing:
Quantity is based on the Current Month Length, which depends on the number of days the membership has in the specific month and the number of days in that month. For example, we would like to calculate the proration for 9 days of membership in October; the quantity would be
9 / 31 = 0.29.Quantity based on Average Month Length is calculated as follows:
(days count) * 12 / 365. This means that if it's prorated from January 15 to January 31, then there are 17 days, and the quantity would be
17 * 12 / 365 = 0.56.
