Prorated tuition billing is a system where parents are charged based on the actual number of days their child attended the childcare center, rather than paying the full program fee. With 1Core's Prorated Tuition Billing, you can mark the service and no-service days of the center and charge tuition fees according to the program start and end dates of each child, as well as the service days of the center.
Access Path : Center Dashboard > Setup > Billing > Prorated Tuition Billing
Service Days :
- Use this option to define your service days and mark days when services will not be provided. Major Federal holidays will be automatically marked as 'No Service Days'.
- You can also mark any day as a 'No Service Day' by selecting the day on the calendar and updating its status.
Check out the video for more about the logic of the service days based prorated billing.
After completing both the service days and no service days of your center, you will be directed to the 'Total Service Days by Program' page. Here, you can view all the programs offered by the center and their respective monthly service days.
Note: You have the option to charge parents for No Service Days as well. If you select "Yes" to the question "Should 'No Service Days be included in the Prorated Billing Logic?" then parents will be charged for both service days and No Service Days during the period that their child attends class.
Instead of basing charges on service days, you can choose to charge parents according to the calendar days (working days) of your center. To use this prorated billing option, simply select the "calendar days" setting.
Monthly Billing Calendar Days Calculation:
Assume that the month in question has 31 days, and suppose a child joins the program on the 8th of the month. In this case, the child's billing period would be 24 days.
To calculate the daily rate for the program, let's use the example of a full-day MWF program with a fee of $1500. The per-day fee for this program would be $48.39 (i.e., $1500 divided by 31 days). Therefore, the total billing amount for the child would be $1161.36 (i.e., 24 days multiplied by $48.39).
Weekly Billing Calendar Day Calculation :
To calculate the daily rate for the program, let's use the example of a full-day weekly 5 days program with a fee of $300. The per-day fee for this program would be $50 (i.e., $300 divided by 5 days). If a child joins on the Wednesday of the week and her weekly billing would be $150 (i.e., 3 days multiplied by $50).