How do prorated or partial billing charges work?
Understanding prorated charges when members join mid-cycle
What Is Prorated Billing?
When a member joins or changes their package mid-billing cycle, Octiv may charge a prorated (partial) amount for the remaining days of that period rather than a full month's fee.
How Octiv Calculates Proration
Proration is calculated based on the number of days remaining in the billing period at the time the member's package starts. The formula is:
(Monthly rate ÷ Days in the month) × Days remaining in the billing period
Which Payment Methods Support Prorate at Member Creation?
When creating a new member via the Create Member flow, a Would you like to generate a prorated invoice for this package? checkbox appears in the Payment step when the member's billing date differs from their package start date. This checkbox applies to card subscription and cash/EFT payment methods.
Note: Debit order prorate is not controlled by this checkbox. For debit order members, prorate behaviour is determined by your facility's sign-up settings under Settings >> Sign Up — either automatic (calculated and added to the next debit batch) or manual. If a manual prorate is required for a debit order member, it must be created separately after the member has been set up.
A Member Is Questioning a Partial Charge
1.Navigate to the member's billing history: Accounts >> Invoices
- Identify the invoice with the partial amount and check the invoice date against the billing cycle start date.
- Explain that the partial charge reflects the days from when they joined until the end of the billing period — they will be charged the full amount from the next cycle.
- If the amount appears incorrect, contact Octiv Support with the member's name, invoice number, and start date.
Prorated Charge After a Package Change
If a member upgrades or downgrades their package mid-cycle, they may see a partial charge for the new package covering the remaining days of the current period. This is expected behaviour.
⚠ To avoid prorated billing confusion, schedule package changes to take effect at the start of a new billing cycle.