After you create either a recurring or a non-recurring membership, the membership needs to be assigned to the relevant centers. The price value, membership credits of the membership can vary between centers. Also, you can choose different models of revenue recognition for each center. 

You can access these options when creating a membership and when you edit a membership.

To customize a membership plan for a center:

  1. In the Center column, select the center.
  2. In the Tax Group column, select a tax group to assign to the membership.’
  3. In the Sale Price column, enter the sale price of the membership at that center. This lets you specify different sale prices for the membership at different centers.Note: This price should be the pre-tax value.
  4. In the Setup Fee column, enter any setup fee that might be applicable for the membership. This column is available only if you set Setup Fee to Yes in the General tab.
  5. In the Initially Recognised Revenue (IRR) column, enter how much of the part of the sale price is recognized as revenue at the moment of sale.
  6. In the Monthly Recognised Revenue (MRR) column, enter how much of the part of the sale price is recognized as revenue each month for the duration of the membership. The value is calculated on a daily basis.
    So if the MRR is $90, in September $3 is realized each day, while in October $2.9 is realized each day.
  7. In the Service Credit Revenue (SCR) column, enter the part of the sale price that is recognized when the guest uses a service credit.

Important: For Credit Value only memberships, do not put any value in the SCR box, because SCR revenue can only be realized when a service credit is used to pay for a service.

The total value of IRR, MRR, and SCR must equal to Sale Price of the membership.

For examples on how to set up IRR, MRR, and SCR, refer to Revenue Recognition Scenarios.

Here are some sample scenarios of how you can set up IRR, MRR, and SCR.

Scenario 1:

Cost of membership: $1200

Duration: 12 months

Type: Service Credit or Credit Value

IRR: 10%

MRR: 90%

SCR: 0%

Services included: Hair cut

Listed price of service: $100

Member price of service: $90

If membership is sold on January 1, amount recognized is $210 (IRR: 120, MRR: 90 (1080/12)). Each subsequent month $90 is recognized as revenue, irrespective of whether the guest uses the credit.

Scenario 2:

Cost of membership: $1200

Duration: 12 months

Type: Service Credit

IRR: 10%

MRR: 0%

SCR: 90%

Services included: Hair cut

Listed price of service: $100

Member price of service: $90

If membership is sold on January 1, amount recognized is $120 (IRR: 120). Every time the member uses a credit, $90 is recognised as revenue.

Scenario 3:

Cost of membership: $1200

Duration: 12 months

Type: Service Credit or Credit Value

IRR: 10%

MRR: 10%

SCR: 80%

Services included: Hair cut

Listed price of service: $100

Member price of service: $90

If membership is sold on January 1, amount recognized is $130 (IRR: 120, MRR: 10 (120/12)). Every time the member uses a credit, $80 is recognised as revenue.

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