How Does Proration Work?

IN THIS ARTICLE:
Learn more about how iClassPro figures proration for enrollments that start after the beginning of the month/session or drop prior to the end of the month/session. Also learn how Blackout Schedules may affect these totals.

You can view more information about proration and how it works with Blackout Schedules below:

What Is Proration?

Proration is the process of discounting a tuition for someone who enrolls in a class after one or more class time slots have already taken place (or mid-term/session/billing period). Proration in iClassPro is calculated automatically as a ratio of the number of enrolled days over the number of available dates for enrollment.

Basic Proration

iClassPro has the capability to automatically prorate tuition for any class based on the calendar month or session/rolling session dates. Whether or not proration will use the calendar month or the dates of a session/rolling session is determined by the settings on the billing schedule tied to the class enrollment. To adjust this, go to Settings>Setup>Class Settings>Billing Schedules and click the pencil/edit icon next to the Billing Schedule you would like to edit.

  • Choose Force Month to prorate tuition over the number of possible enrolled days out of the billable dates in the true calendar month. 
  • Choose Force Month as 4 Weeks to override the default session behavior and bill a month as four weeks for any enrollment using this billing schedule. Proration will only begin when the number of billing days is less than would be expected for 4 weeks worth of dates.
  • Choose Month/Session to prorate tuition for the number of enrolled days out of the billable days in the whole session/rolling session. If a class using this billing cycle happens to not be set up to use sessions/rolling sessions, it will default to the Force Month behavior for that class.

To turn on Proration, go to the Classes page, click the edit button (pencil) next to a class, and then click the Billing tab. Click the check box next to "Allow Proration" to turn this feature on.

  • For Flat Rate Classes with Force Month selected as the billing cycle, classes will prorate using the percentage of the remaining class dates within the calendar month multiplied by the class tuition. For example: If a class has 5 total class dates in a month and the student starts one week into the month, the system would charge 80% (or 1/5) multiplied by the class tuition.
  • For Flat Rate Classes with Force Month as 4 Weeks selected as the billing cycle, the system will always prorate as if there were four weeks in the billing cycle. For example: If a class has 5 total class dates in a month, the system will charge full price unless the student missed two of the five dates, at which point it would charge 75% (or 1/4) multiplied by the class tuition.
  • For Flat Rate Classes with Month/Session selected as the billing cycle, classes will prorate using the percentage of the remaining class dates within the billing cycle multiplied by the class tuition. For example: If a class has 10 total class dates in a session and the student starts three weeks into the session, the system would charge 70% (or 7/10) multiplied by the class tuition.

For Hourly or Timeslot Classes, the software will ignore any hours/timeslots for classes missed within the billing cycle due to late enrollment/early drop.

Note: You can also use the Quick Edit Tool to turn Proration on for multiple classes at once.

Prorating for Blackout Schedules

Blackout schedules are attached to classes through the class Program. In order to calculate Blackout Dates into the billing process, the Allow Proration setting must be turned on for each class.

  • For Flat Rate Classes, Blackout Schedules default to discounting the enrollment for the blackout date(s), using the percentage of the remaining class dates within your billing cycle (established by your Billing Schedule; "month/session" or "force month") multiplied by the class tuition.  For example: If a class has 5 total class dates in a month with one as a blackout date, it would be 80% (or 1/5) multiplied by the class tuition (simply put, 80% of class tuition).
  • To prevent this discounting (proration) for the blackout date(s), check "Disable Proration for Blackout Dates" in your blackout schedule. This will simply spread the full tuition among the remaining days of the billing cycle. Ex: If a class has 5 total class dates in a month with one as a blackout date, the full class tuition would be distributed across the other four dates, ignoring the blackout date (in the event of a student enrolled in only a few of the remaining class dates).
  • For Hourly or Timeslot Classes, Blackout Schedules cause the software to ignore any hours for classes that take place on the blackout dates.

Click here to learn more about creating Blackout Schedules.

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