# Contracts: the most common scenarios

## Multi-contract proposals

A very common scenario is when a [proposal](/platform/day-to-day/sales-and-crm/proposals.md) represents a deal that changes price every few months. For example, a private office may be rented at one price for the first year, a different price for the second year and a final price for the third year. You can use multi-contract proposals to represent these deals and present them to your customers as part of the proposal acceptance process. To do this, create a regular proposal, ensuring you select a cancellation date for when first part of the deal ends. For example, in this case we have have added a proposal that starts on the 1st of February 2019 and ends on the 1st of February 2020.

## Prorating cycles

It is also common to have a prorating cycle different to the billing cycle for monthly memberships. For example, you might invoice members on the 25th of the month but your billing cycles and prorating of the first invoice is based on the 1st of every month. You can use the **Prorate Day of Month** field in every price plan to indicate what the prorate cycle is, even if the billing day for that plan is entirely different.

## Prorating a cancellation date

When using a cancellation date in a contract that occurs half-way through a member's normal billing cycle, you can automatically prorate the last invoice amount instead of charging them for the full month. For example, suppose a member is invoiced every 1st of the month and decides to cancel on the 20th. When this option is enabled in their contract, the last invoice will be for those 20 days, rather than the full month.


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