# Prorating a contract

When a member signs up for a contract before the first billing day, you can choose to charge the member for the time that elapses between sign-up and their first billing day. This is known as **prorating** the contract. For example, if they sign up on the 20th of the month, but the default invoicing day on their contract is the 1st, they will be charged for the time between the 20th and the 1st if you prorated the first invoice.

{% hint style="info" %}
It is also possible to [prorate a customer's plan](https://legacydocs.nexudus.com/platform/day-to-day/inventory/managing-plans/prorating-a-plan).
{% endhint %}

## Prorating a contract

1. If the side menu is not visible, click <img src="https://3743897482-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Lbh_u87wC7EAH8sHaxc%2F-Li8CzI_wW9MFOVR8udd%2F-Li8D5GrhOIcbhMDzQw8%2Fhamburguer.svg?alt=media&#x26;token=26002cf1-c214-48d7-87a2-3c4f5cd394f4" alt="" data-size="line"> .
2. In the side menu, click [**Finance**](https://platform.nexudus.com/finance/invoices), then click [**Contracts**](https://platform.nexudus.com/finance/contracts).
3. Click the contract whose details you want to view.
4. Under the **Price** section, select **Adjust the next invoice...(prorate).** Note: Pro-rating a contract won't work unless the plan it's based on has pro-rating enabled.
5. Click **Save changes**.

{% hint style="warning" %}
Pro-rating a contract won't work unless the plan it's based on has pro-rating enabled.
{% endhint %}