When you sell a membership with a setup or initiation fee, two separate invoices are created - one each for the setup fee and the regular membership fee. 

The set up fee item is named as Name of the primary membership_Setup fee. 

For example, if a guest signs up for a membership called Foundation Massage Membership that has a set up fee, and the moment Add Membership is clicked in POS, two invoices are generated with the following items:

  • Foundation Massage Membership_Setup fee

  • Foundation Massage Membership

You can schedule the payments for both the setup fee and the first membership payment on the same day or for a later date. 

Typically organization uses the enrollment fee to introduce the guest to a few membership benefits, such as free service credits (prepaids) or discounts. So they charge the setup fee on the same day and schedule the first membership payment to a later date.
If you schedule the first membership payment to a later date, the membership remains in an inactive state until the first payment is made.

The membership benefits of a setup fee aren't usually the same as the regular membership benefits.
The guest can avail the benefits tied to the setup fee, and not the membership.

The billing cycle starts from the day of collection. Also, the payment mode that you use for the setup fee becomes the default for the first and all the future membership drafts. However, if you pay the setup fee using prepaid or gift cards, the default payment mode for the next drafts becomes cash. 

You can change the payment mode after you sell the membership. 

See Also

Selling a Membership with Setup Fee

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