Convert date to month name & year

No Need of DATE_FORMAT() function.

Example-1: If 00 used in day. Then, output will be June, 2017

<?php
$date = '2017-07-00';
echo date('F, Y', strtotime($date)); //June, 2017
?>

Example-2: If 01 or valid day used in day. Then, output will be July, 2017

<?php
$date = '2017-07-01';
echo date('F, Y', strtotime($date)); //July, 2017
?>

You are not using correct parameters, use F for moth and Y for year

Full code:

$date = '2017-07-00';
$date = date('F, Y ', strtotime($date));
echo $date;

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