How to determine a default refund method when cancelling a membership ?

When cancelling a membership, several refund options are available. Depending on the club's policy, it is possible to make the refund methods visible during cancellation actions on the member file and to pre-select one by default.

Online cancellations

In this article, we will only deal with cancellations from the back office. To find out how to allow members to cancel from their member area, see this other article.

How to choose the default refund calculation methods?

• Balance methods blocked according to profile

When cancelling, it is always possible to see the three balance options on the screen. However, for some profiles, certain options may be greyed out (not usable). Simply contact the support service to make all the options available to a user profile.

⚠️"Do not balance the current period" will always be selectable when you cancel a membership, whatever happens. However, you can decide whether or not to show the pro rata balance mode (contact our customer service department for this).

• Balance method preselected when cancelling

From the Settings > Clubs / Legal > Clubs > Cancellation menu, you can define which mode will be pre-selected by default.

This choice corresponds to the most common case, depending on the club's policy.

There are two choices here:

• Which mode is preselected when cancelling future instalments (cancellation of instalments)? This is the drop-down list in field 1, which contains three options.
• Which mode is preselected when the cancellation takes place during the initial billing period? The drop-down list in field 2 contains two possibilities.

To understand the default calculation methods...

On this back office screen, which is visible when a cancellation is made, we will determine how the amount of the credit created as a result of the cancellation is calculated. There are several possibilities, and depending on the choice made, the details of the calculation are shown.

The choice you make in the parameters allows you to pre-select a given calculation method on this screen.

We will take two examples: one of a pro rata membership, the other of a date-by-date membership. The financial impact of each cancellation option is explained below each diagram.

Case 1 - With a pro rata membership

In this case, the membership is cancelled on 04/04. A payment is due on 15/04 for the whole of April. A direct debit is due in May, but not yet in "in progress" status.

Do not balance the current period.

The member paid his March instalment on 15/03. If the current instalment (that of 15/04) is not repaid, the member will be charged, as usual, the amount equivalent to a full month for the whole of April (service date from 01/04 to 30/04). The May due date (15/05) will not be billed.

Balance the current period on a pro rata basis.

The member paid his March instalment on 15/03. The pro rata repayment is used to repay the number of days not used in April. A credit note is created for the total value of the current month - the value of the number of days used. In our example, we calculate a total value of 30 days in April and subtract the number of days used (3 days from 1 April to 4 April excluded).

A credit note will be generated on the current 15/04 due date, to reduce it. The May due date (15/05) will not be generated or deducted.

Balance the current period in full.

The member has paid his March instalment. In order to refund the current period in full (the month of April), a credit note will be generated on the due date of 15/04: the member will have nothing to pay on that date). The May due date (15/05) will not be invoiced.

Case 2 - With a date-to-date membership

Do not balance the current period.

The member paid his March instalment on 20/03. If the current instalment (that of 20/04) is not paid, the member will be debited, as usual, with the amount equivalent to a full month for the whole month (date of service from 10/04 to 09/05). The May instalment (20/05) will not be billed.

Balance the current period on a pro rata basis.

The member paid his March instalment on 20/03. The pro rata refund is used to refund the number of days not used in the current month (service date from 10/04 to 09/05). A credit note is created for the total value of the current month - the value of the number of days used. In our example, we calculate a total value of 30 days from 10/04 to 09/05 and subtract the number of days used (3 days from 10/04 to 14/04 excluded).

A credit note will be generated on the current due date of 20/04, to reduce it. The May due date (20/05) will not be invoiced.

Balance the current period in full.

The member has paid his March instalment. To refund the current period in full (the month from 10/04 to 09/05, a credit note will be generated on the 20/04 due date: the member will have nothing to pay on that date). The May due date (20/05) will not be billed.