A member wants to prepay for multiple months of their membership. How do I set this up?

Prepaid balances will not automatically apply across multiple months of charges. Instead, follow the steps below to properly record the income and adjust recurring billing.

Step 1: Build the Invoice and Record the Prepaid Amount

1. Go to BILLING > CHARGES/PAYMENTS
2. Click CREATE NEW INVOICE +
3. From the ADD CHARGES section, locate the Membership or Service you want to charge for.
4. There are two ways to add charges depending on how you want the revenue reported (e.g., on the Income by Item (Accrual) and Royalty Reports):

To report all revenue in the same period:

• Enter the total number of months prepaid in the Qty field.
• Then, set the Use Date to the date you want all the charges to be reported in.

Example: If a member is prepaying for 3 months January–March, enter "3" in Qty and set the Use Date as Jan 1 (or align it with the Due Date on the invoice.

Invoice example:

OR

To report revenue in the month it's used:

• Leave the Qty as "1" and create one line item per month, adjusting the Use Date for each.

Example: For January–March prepayment, create three separate charges with Use Dates of January 1, February 1, and March 1.

Invoice example:

5. ADD A PAYMENT to the invoice. You can also record the payment(s) in future periods if needed using "Check" or "Other".

Optional: You may also split the charges across separate invoices for each month.

Step 2: Modify the Member’s Recurring Billing

1. Go to BILLING > RECURRING BILLING
2. Edit the recurring billing that has been prepaid
3. Set the Next Billed On date to when the member should be billed again. 

Example: If the Member prepaid for January - March 2024, set their Next Billed On date to April 1, 2024.

(Tip: You can align this with the member’s Renewal Date for easy tracking and/or automated reminders.)

Step 3: Add a $0 "Sweep" to Capture Usage Charges During the Prepaid Period

Before you begin: Make sure the $0 product you'd like to use (e.g., “Monthly Usage”) is already set up in your INVENTORY. If you need help creating a new product, please submit a support ticket and we’ll be happy to assist.

To ensure any additional reservations or charges are still invoiced during the prepaid period:

1. Go to BILLING > RECURRING BILLING
2. Click NEW CHARGE +
3. Create a new recurring billing with the following settings:
   • Billing Frequency: Monthly
   • Product: “Monthly Usage”
   • Description: Optional note to appear on each invoice
   • Next Billed On: First date of the upcoming billing period
   • Fill in any additional fields as needed

By following these steps, you'll ensure accurate income reporting and smooth billing for your member. 

Need help? If you use the QuickBooks Online integration, have a preferred method for reporting income or need assistance with a specific setup, feel free to submit a ticket for personalized support.