Subscription discounts and/or penalties

MemNet allows you to offer a discount to your members for paying their subscription renewal "on time".  The amount of the discount is configurable (as a percentage or dollar amount) and you may offer different discounts based on how early the member pays relative to the due date. Likewise, a penalty (or series of penalties) can be added for "late" payment.

Enabling Discounts Functionality:

Subscription discounts need to be enabled under Administration / System Configuration / Company Settings by checking the Enable Subscription Discounts and Penalties option and updating the company settings. You will now be able to configure subscription discounts on your subscription codes.

Enabling discounts on subscription codes:

Discounts can be enabled per subscription code by checking the  Enable Discounts checkbox on each subscription code you want to enable discounts for.

Penalties can be enabled per subscription code by checking the  Enable Penalties checkbox on each subscription code you want to enable penalties for.

This can be done when creating a new subscription code or by editing an existing subscription code (under Administration / System Configuration / Subscriptions). When enabling discounts or penalties, you do have the option of selecting an account code for the discounts or penalties to be assigned to - this can allow you to track the total value of all discounts provided or penalties charged - if not selected, the same account code as that used for the subscription will be used. See note below

Once discounts or penalties are enabled on a subscription, a Manage Adjustments button will appear above the list of subscription frequencies. Use this button to manage this subscription's discounts and/or penalties. 

Managing Subscription Adjustments (discounts and/or penalties):

Clicking the Manage Adjustments button takes you to the Manage Adjustments screen for the current subscription, where you can select the discounts and/or penalties to be applied to the current subscription. The following information needs to be entered for each discount offered.

Field	Usage	Example Value
Frequency	Lists the frequencies of the current subscription. Select the value to apply the discount or penalty.	Annual (Values limited to those configured on the selected subscription)
Full Amount	Displays the full amount of the subscription based on the selected frequency	For reference only
Days From Due Date	Enter the number of days from the due date to apply the discount or penalty. Select if this is the number of days Before or After the due date from the drop-down. 0 is the due date.	0 (the date the invoice or subscription is due)
Description	The amount of the discount or penalty to be applied. See below to add values to this list	A selection from the list of available adjustments.

Note that multiple discounts and/or penalties can be applied to the same subscription with varying numbers of days before or after for each.

Creating New Discounts and Penalties:

To create a new discount or penalty that will then appear in the Description dropdown list on the Manage Adjustment page. Depending on the type of adjustment you want to create, click the Create New Discount button or the Create New Penalty button at the top of the page.

On the following page, enter:

• A description. This is used to identify the adjustment in the drop-down list on the Manage adjustments page.
• The discount or Penalty type: Percentage or Amount (Dollars). This determines the appropriate type of value for the following field and how the discount or penalty will be applied.
•  Discount or Penalty amount: This can be either:
  • A percentage. This can be between 0.01% and 100%. The discount or penalty will be calculated as a percentage of the full amount of the subscription at the time payment is made.
  • Any positive dollar amount. This is the amount of the discount or penalty to be applied. If creating a discount and this amount is greater than the value of the subscription, then a 100% discount will be applied only.

Note that discounts and penalties created are available across all subscriptions that have discounts or penalties enabled, allowing the same adjustment to be applied to multiple subscriptions.

Once an adjustment is enabled for a subscription frequency, the view of the subscription record in MemNet administration will indicate that a discount and/or a penalty is enabled in the list of frequencies for the subscription. Mouse over the icon to see what discount will be applied when this is displayed in plain language.

NOTE:

• When a discount is applied to a member's subscription via the member self service renew subscription process, an invoice is created for the full amount of the subscription and a credit note is created and applied for the calculated discount amount. This credit will be assigned the discount account code for that subscription if one has been selected.
• If multiple adjustments are configured for the same subscription code, then only one is applied. The adjustment where the next "Days From Due Date" will be reached will be applied at the time payment is processed. If no adjustments are available, the full amount is due.