Set Up Membership Proration with ARMember

Proration will only be available when you activate ProRata from Add-ons.

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Pro-Rata is an addon that provides a facility to allow the members to charge only the difference while upgrading/downgrading from one plan to another.

Configure Membership Proration in the General Settings

To configure it navigate to the ARMember -> General Settings -> Pro-Rata Configuration

Here you will be able to set the Pro-Rata Method. Furthermore, ARMember does offer two types of membership proration, through which the admin can select the way in which you desire to add proration to your site. The following are the two different types of methods

Cost-Based Calculation

The initial plan amount should be less than the new plan selected for upgrade.

Membership proration calculation depends on the chosen method and applies to the plan selected in the Manage Plans page during upgrade or downgrade.

The Cost-Based calculation is based on the previous plan’s price, so the new plan’s final payable amount will be New Plan Price – Previous Plan Price.

You can set upgrades/downgrades for these plan types: Infinite Plan, Finite Plan, and Subscription Plan.

1. Infinite Plan

You can upgrade to a Finite or Subscription Plan when the current account is Infinite.

So as per the above screenshot,If a member upgrades from Plan A – 70(Infinite) to Plan B− 100 (Subscription), the payable amount is $30, for the first cycle only. Possible upgrade/downgrade cases include:

• Infinite to Infinite
• Infnite to Finite
• Infinite to Subscription

2. Finite Plan

If you select Cost-based calculation, the previous plan’s amount is deducted from the new plan’s price.

Example

Upgrading from a 30-day $300 plan after 15 days results in only paying the difference, based on whether the upgrade occurs immediately or at the end of the term.

Actions

Upgrade/Downgrade after current plan ends, or Immediate upgrade. If set to wait until plan ends, the new plan begins after expiration, and only the difference is paid.

3. Subsription/Recurring Plan

Members can upgrade to a higher-tier subscription plan.

Example: Upgrading from Pro to Platinum allows members to switch plans, with upgrades either immediately or after the current period ends.

Time-Based Calcuation

If Time-Based Calculation is selected, membership proration will be calculated based on the plan used for the number of days, and the remaining amount will be deducted accordingly

1. Infinite Plan

When the Infinite plan is selected with an upgrade plan and Time-based Calculation, the amount to be deducted will be based on the plan used. Since the Infinite plan provides lifetime access, the cost cannot be calculated based on usage period. Therefore, the amount charged will be based on the planned upgrade cost.

2. Finite Plan

For Finite Plans, the final amount is calculated based on the days of usage.

Let’s understand this with the help of an example:

• Tom has a Plan A(with Finite Type) for 30 days with the plan price $300. Now if the Tom is willing upgrade to the Premium Plan for $600(Monthly Subscription Plan set at upgrade plan), after 15 days of Plan A used i.e. Tom has already used the plan for 50% of the days so the calculation will be as below(when the reset billing option is disable).
  
  Plan A amt: $300(30 Days)
  Plan A used: 15 days i.e. $150(50% Plan used)
  Plan B(Monthly Subscription Plan): To be used for 15 days($600-$300= $300)
  
  Proration Amount = Plan A Amount / Plan A Duration * Remaining Days
  Proration Amount = 300/30*15
  Proration AMOUNT = $150
  
  Payable Amount = Plan B Amount / Plan B Duration * Remaining Days – Proration Amount
  Payable Amount = 600/30*15-150
  Payable Amount = $150

3. Subscription Plan

This also follows the same logic as above. Thus, accordingly when a member switches from the subscription to subscription then the amount to be deducted will be paid as per the plan used for the x number of days.

Reset Billing Period:

You can enable this option for membership proration from the ARMember -> General Settings -> Pro-Rata Configuration.

If the upgrade plan is a subscription plan only then this option will work.

So, if this option is enabled then the new subscription plan start date will be reset and then it will consider plan start date as per the new subsccription plan purchased.

Let’s understand more clearly with the help of the following example:

If you have purchased a subscription plan on 7th May with monthly recurring cycle then its expiry date will be 7th June, but the member upgrade to a new plan 4th June, then with this option the plan start date considered will be 4th June.

If upgrade/downgrade action is Downgrade to other plan after current plan expiration (After End Of Term) so Reset billing switch have to enable form ARMember -> General Settings -> Pro-Rata Configuration otherwise Pro-Rata will not apply due to old membership plan is still active.

How will be the membership proration be calculated along with the Coupon Code and Tax Addon?

1. Cost-based
Plan-A Price: $165($150 + $15[tax]) – Paid Plan (finite)
Plan-B Price: $300 – Paid Plan (finite)

Coupon Amount: $15
Tax(assume 10%): $300*10/100= $30
Pro-rata Amount from Plan A(cost based): $165 discount.

Calculation:

Plan Price + Tax = $300 + $30 = $330
Subtract pro-rated amount: $330 – $165 = $165(discounted price due to pro-rated access)
Apply Coupon Discount: $165 – $15 = $150

Therefore, your final cost for the first month with both the pro-rated access and the coupon applied would be $150.

2. Time-based
Plan-A Price: $345($300+$45[tax]) Paid Plan Finite(Monthly)
Plan-B Price: $500(Paid Plan Finite (Monthly))

Coupon Amount: $15
Tax(assume 15%): $500*15/100= $575
Pro-rata Amount from Plan A(15 days used):345*15/30 = $172.50(considering month with 30 days).

Calculation:

Plan Price + Tax = $500 + $75 = $575
Subtract pro-rated amount: $575 – $172.50 = $402.5(discounted price of 15 days due to pro-rata)
Apply coupon Discount: $172.50 – $15 = 387.50

Therefore, your final cost for the first month with both the pro-rated access abd the coupon applied would be $387.50.

Pro-rata Shortcode

ARMember does provide a facility to add the pro-ration shortcode at the “Payment Summary.” In order to add this shortcode, you can navigate to the ARMember-> Configure Plan + Signup Page, and here you can add the shortcode [PRO_RATA_AMOUNT].

ARMember Multiple Membership Addon will not be activated if you already have activated the Pro-Rata Addon.

Following is the list of the payment gateways wherein you can check which payment gateway support the auto-debit payment type.

Payment Gateway	Pro-Rata Auto-Debit Subscription Support
PayPal	Yes
Stripe	Yes
PayPal Pro Addon	Yes
Paddle Payment Gateway Addon	Yes
Authorize.net	No
2checkout	No
PayStack Payment Gateway Addon	No
PayUMoney Payment Gateway Addon	No
Braintree Payment Gateway Addon	No
Online WorldPay Payment Gateway Addon	No
Klarna Payment Gateway Addon	No
Mollie Payment Gateway Addon	No
PaySeguro Payment Gateway Addon	No
PayFast Payment Gateway Addon	No
RazorPay Payment Gateway Addon	No
Square Payment Gateway Addon	No
Skrill Payment Gateway Addon	No
CCAvenue Payment Gateway Addon	No
Airwallex Payment Gateway Addon	No