Standard Operating Procedure: Upgrading and Downgrading Memberships Mid-Billing Cycle
Objective:
To effectively upgrade or downgrade memberships mid-billing cycle while ensuring accurate billing and membership adjustments.
Key Steps:
Cancellation at the End of Current Billing Cycle:
Cancel the current membership at the end of the current billing cycle.
If upgrading, set the cancellation date to align with the desired upgrade start date.
If downgrading, set the cancellation date to align with the desired downgrade start date.
Adjust Payment Method for New Membership:
Set up the payment method for the new membership (e.g., fully unlimited membership).
Specify the billing frequency (e.g., month to month).
Choose a start date for the new membership that aligns with the cancellation date of the previous membership.
Modify Billing Cycle Date:
Determine the new billing cycle start date based on the cancellation date of the previous membership.
Calculate the prorated amount for the period between the cancellation date and the new billing cycle start date.
Adjust the billing cycle date to the chosen date (e.g., from the 26th to the 1st).
Create New Prorated Invoice:
Generate a new prorated invoice for the amount corresponding to the period between cancellation and the new billing cycle start date.
Ensure the normal billing cycle will commence on the new billing cycle start date.
Cautionary Notes:
Ensure accurate calculation of prorated amounts to avoid billing discrepancies.
Double-check the start and end dates of memberships to prevent overlapping billing cycles.
Communicate changes in membership status and billing cycle dates clearly with the member.
Tips for Efficiency:
Utilize the cancellation and setup features within the billing system for seamless membership transitions.
Keep detailed records of membership changes and billing adjustments for reference.
Provide clear instructions to members regarding the impact of mid-billing cycle upgrades or downgrades on their billing cycle.