Pro Rata

What is a Pro Rata payment? How do I collect a Pro Rata amount?

Updated over a week ago

What is Pro Rata
The term Pro Rata is given to the amount of money that you might collect from a new member when they first join, for their use of the membership before a full Direct Debit payment can be collected.

For Example
A membership plan costs £10 for 14 days. 7 days from the next collection date a member joints. ClubRight will charge a £5 amount to fund use of the Gym for the first 7 days before the first £10 amount can be taken. This amount is automatically calculated when the membership is created.

So to put it simply, it means the amount of money that can be collected from the customer, should you wish to do so, making sure they pay for their use of the facilities between the time of joining and their first payment date.

How it works

To activate the Pro Rata feature go to the settings cog, then to memberships, click on the membership plan now under payment tick the Pro Rata check box to start taking Pro Rata payments from new members when they join.
Once this Pro Rata is activated, the membership sold will be calculated with a Pro Rata payment as part of the sale. Memberships sold before this feature was activated will not have Pro Rata added to them.

For Example
It's calculated as an annual pro-rata (so monthly payment * 12 / 365) - get a day rate, times by the number of days.  On long months this can end up being slightly more

How to turn on pro-rata

Firstly go to the settings in the top right.

Then click on membership plans.

Now click on the membership plan you would like to turn on pro-rata for.

Under the payments tab enable pro-rata

SUMMARY

To sum up it is a matter of choice as to whether you charge Pro Rata to your members, there is no right or wrong way and if you were to ask other club owners they will all most likely give you a different opinion.

At ClubRight all we want to do is give you the tools you need to run your club the way you want to run it.


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