This article will cover several topics related to setting up billing options when creating and editing classes.
Understanding Billing Schedules
Billing schedules are labels which get associated with a tuition price when added to classes. When an enrollment is added, the staff member can assign it to a particular billing schedule. Because of this, billing schedules allow your business to set a group of students within a class to be billed a different rate or at a different frequency than other students.
Creating Billing Schedules:
To create a Billing Schedule, navigate to Settings>Setup>Class Settings. Then click on the pencil icon for the Billing Schedules section. Here, you can view existing billing schedules and add new ones.
Click Create New Billing Schedule to begin. In the new window, add a Title for the billing schedule.
Next, select a Billing Cycle to be used to prorate enrollments within this billing schedule:
Month/Session - This billing cycle will tell the class to search for a session or rolling session on the class. If one is attached, it will prorate the enrollment based on the percentage of class periods enrolled, out of the full dates set for the corresponding session or rolling session. If no session or rolling session is found, it will prorate based on the calendar month (see Force Calendar Month).
Force Calendar Month - This billing cycle will ignore any sessions or rolling sessions and bill the enrollment for the percentage of class periods enrolled out of the total number in the calendar month.
- Force Month as 4 Weeks - This billing cycle forces proration on 4 weeks, even if there are 5 of some weekdays in the calendar month. If the class meets twice a week, proration is based on 1/8, three times a week is based on 1/12, etc. If the student is enrolled for at least 4 meeting times within the calendar month for each day in the class schedule, they will still be charged the full monthly tuition price.
Example Scenarios for Using Multiple Billing Schedules:
Using billing schedules to set lower tuition rates for a particular group of students
For example, if your team students' recreational classes are all billed at a rate that is $10 lower than the standard recreational class fee - you can create a separate "Team Students" billing schedule and a separate team rec tuition under and attach those options as a pair to the class.
To bill the students that have been assigned that fee, you will need to either create the charges manually on ledgers or run Class Tuition Charges for the "Team Students" billing schedule.
Using billing schedules to offer different billing dates at the same price
Another example of how billing schedules can be used is if you have students that need to be billed and have payment collected on separate dates. One common scenario is if a business has monthly billed classes - but offers the option to pay for classes on the 1st or the 15th of the month. In this case - the business could create different billing schedules for "Monthly 1st" and "Monthly 15th". When setting up the class - you can attach the same tuition price to both options.
When it comes to billing the customers with payments due on the first, you will log into iClassPro and run class tuition charges for the enrollments set up with the billing schedule "Monthly 1st" (say, on the 20th of the previous month) and set the due date as the first of the month. Next, you can go in and create the Class Tuition Charges for the "Monthly 15th" billing schedule enrollments separately using a due date as of the 15th.
When the first of the month comes around, for those customers with payment info on file, you can choose to collect payment for all Class Tuition charges that are due on the first of the month to collect only for the "Monthly 1st". And when the 15th comes around, you can collect payment from customers with Class Tuition Charges due on the 15th for just the "Monthly 15th" enrollments.
Using billing schedules to establish two different billing frequencies for the same class
A different way to use billing schedules is to determine how frequently a group of enrollments should be charged. For example - a business may offer a "summer session" that is 8 weeks long during June and July. To make it easier for customers, they want to offer a choice of paying in full for the session up front ($100), or making two monthly payments ($50 each). In this scenario, the business can create two billing schedules - one for "Monthly Payments" which uses a billing cycle of Force Month and one for "Full Session" which uses a billing cycle of month/session. When attaching these options to the class, the "Monthly Payments" would be linked to a tuition for the amount for $50 while the "Full Session" would be linked to a tuition for the full $100.
PRO TIP! A class cannot be attached to overlapping sessions/rolling sessions. Therefore, automated proration cannot be set up for multiple frequencies that are based on custom date ranges which overlap.
Understanding Tuition Amounts
When creating tuitions, keep in mind that the amount you are entering is the base (or most expensive) amount billed for the class. Multi-class and multi-student discounts will subtract from the amount created here.
You will also need to know how you would like the rate to be used before entering the tuition amount in your settings. The amount entered can either be used as a flat rate (per billing cycle) or an hourly rate (hours over week or hours over billing cycle) when setting up the class. The table below explains some key differences.
PRO TIP! To offer true multi-class discounts, you will need to use a flat rate tuition approach. When billing hourly, all discounts are based on the total number of hours the class(es) meet(s) in the billing cycle, rather than the total number of classes enrolled.
To create a Tuition, navigate to Settings>Setup>Class Settings. Then expand the Tuitions section. Here, you can easily search for tuitions, add new tuitions, review tuitions that have been deleted and edit existing tuitions.
Click on Add New Tuition. Then, in the new window enter a Name for the tuition and the Amount to be billed. When finished, click Create.
Overriding a Billing Schedule or Tuition Price for a Class Enrollment
When creating or editing an enrollment in iClassPro, you can set up an override for either the billing schedule or tuition used for the enrollment. Using a billing schedule override will still allow the student's enrollment to receive discounts (the discount schedule can also reference special discounts for this specific billing schedule) and calculate proration if it is allowed on the class, but will only bill the student when you manually create a charge or run Class Tuition Charges for that particular billing schedule.
However, a tuition override will always bill the amount entered unless you have enabled the option to enable proration for overridden tuitions (covered below).
Billing Schedule Override
Use the Billing drop-down to select a different billing schedule than the one that has been set up as the class default. This will tell the system to use a different billing schedule when billing for that enrollment. To ensure the correct price is used, make sure that the class is set up with that billing schedule and a matching tuition price on the billing tab of the class.
To easily tell which billing schedule an enrollment is attached to, you can click on the enrollments icon next to a family or student and look at the Billing Schedule column. An orange warning message will also appear in the Class Tuition Charges preview for enrollments with a billing schedule override.
A tuition override will always charge the price entered unless you enable the option to allow proration for an overridden tuition either by enrollment start/end date or blackout dates. These settings can be enabled under SETTINGS>SETUP>CLASS SETTINGS>GENERAL CLASS SETTINGS. They are disabled by default:
To set a tuition override, check the box next to the override amount field, then enter an amount.
To easily see when a tuition amount has been overridden, you can click on the enrollments icon next to a family or student and look for any red tuition amounts. An orange warning message will also appear in the Class Tuition Charges preview for enrollments with a tuition override.
Managing Class Billing Options
When classes are created, the pricing is set up under the Billing tab of the class information.
This is done by pairing a billing schedule with a tuition and adding it to the class.
Businesses can choose to add multiple billing schedule/tuition pairs to classes to create different pricing options for the same class. When you are finished, one of the options must be set as the default.
If you are billing hourly, you will also need to fill in the Hourly Billing section by selecting the option "This Class Bills Hourly" and then choosing options for the Billing Period and Proration Period.
- Billing Period - the time frame over which class hours are added up (the total number of hours are multiplied by the class tuition to get the base price before discounts).
- Billing Cycle - either the calendar month, the session/rolling session or a forced 4-week month - as defined by the billing cycle selected under the billing schedule.
- Over a Week - calculates the total number of class hours in a typical week.
- Proration Period - the time frame over which the student gets prorated.
- Billing Cycle - (recommended) will prorate by the percentage of class time missed within the calendar month, session/rolling session or a forced 4-week month - as defined by the billing cycle selected under the billing schedule.
- Over a Week - does not prorate tuition.
Next, choose whether or not this class allows Discounts (multi-class, multi-student and special discounts) and Proration (based on missed class time and blackout schedules).
Finally, if this class will use a different discount schedule than the one that is associated to the Program under the class details (set up under the program information at Settings>Setup>General Settings>Programs), you have the option to Override Discount Schedule.