The following article explains how proration works in Enrollsy and what you must do to have it work properly.
Must-Dos for Proration to Work
IMPORTANT: For Prorating to work correctly, you'll need to do the following:
Proration currently only works with Pay-in-Full and/or Scheduled Payment Plans in any Enrollment Model or the Subscription Payment Plan if you choose the option "on a specific day."
Ensure the Enrollment Model indicates when the Program runs or if the pricing is on the Class; make sure the Class dates are set.
When applicable, modify or create your Holiday Calendar if you wish to exclude specific dates from the proration algorithm. In other words, exclude them if you don't want Holidays or Breaks to be included as part of the total cost that gets prorated.
Depending on where you have pricing set, you will now see a Prorating section in the Program or Class. Ensure the Prorating settings include all Charge Items you intend to Prorate. This consists of those due at enrollment and in any Payment Plans.
See this support article for more steps on how to set up proration on one or more Programs.
Desired Start Date
On the Enroll Form, the Enrollee is asked to provide a desired start date. This start date is so that you know when to anticipate the date the Enrollee will start attending.
If the Enrollee selects a start date, that date is included ONLY in the Enrollment Confirmation email sent to Admin users.
If the Enrollee does NOT include a start date, the start date is the NEXT Class date
NOTE: Currently, the start date is only on the enrollment confirmation email. Be sure you are getting copied on these emails here.
How Proration Works on Scheduled Payment Plans
Pay in Full
For the "Pay in Full" option, the customer pays the full cost of enrollment upfront, including the enrollment fee, material fee, and tuition. Here's a breakdown of how this works:
Calculation Example:
Total Tuition Cost:
Let's say the total cost for 10 classes is $25,450 (10 classes x $2,545 per class).Adjusting for Missed Classes:
If a customer missed 10 classes, we subtract the cost of those missed classes from the total program cost: $28,000 (total cost) - $25,450 (cost of missed classes) = $2,550 remaining.Final Amount Due:
Add the enrollment fee and material fee to the remaining amount to get the total amount due: $2,550 (adjusted tuition) + enrollment fee + material fee = Total amount to be paid in full.
2. Payment Plan
The "Payment Plan" allows customers to pay the enrollment fee and material fee upfront, with the remaining tuition spread over scheduled monthly payments. If classes are missed, proration may be applied to adjust the payment amounts. Let's say we're starting the class in September and the class started in August.
Calculation Example:
Upfront Fees:
Enrollment fee and material fee are due at the time of enrollment.Prorated Tuition for Missed Classes:
Assume a total fee of $32,820 is due at enrollment. Since all classes in August were missed, no tuition is charged for August. However, if some classes were attended in September, we need to calculate the prorated tuition for that month.Prorated Amount for September:
The regular monthly tuition amount is $2,800. If 4 classes in September were missed (at $2,545 per class), we subtract the cost of those missed classes:
$2,800 - ($2,545 x 4) = $17,820.
Add this prorated amount to the enrollment fee and material fee to get the new total of $32,820.Scheduled Payments:
The remaining 8 classes will be paid according to the normal monthly schedule. For example, the first regular payment will be due on October 1st.
Key Considerations for Proration on Payment Plans
When using a payment plan, it's important to understand that while the cost of service is split equally over several months, the delivery of service (i.e., the number of classes) may not be equal each month. Therefore, proration is necessary when the number of classes attended in a month differs from the standard schedule.
Example: If four classes were missed in August, but the customer attended the last two, the payment would need to be adjusted accordingly to reflect only the cost of the classes attended.
Test Enrollment
As always, you can just run through a quick test enrollment to verify that your settings produce the desired outcome. Click here for more about how to test enroll form links.
NOTE: Proration of the fee or tuition will be based on the provided start date. If the Program or Class dates are in the future, when you do a test enrollment, the start date field will not show on the Enroll Form. You will have to set the Program or Class date in the past while you are testing so that the start date field will show.
You can also change the date to a date in the past, and then add all the days between the past start date and the actual first class date to the holiday calendar.
PAYMENT for the Program will start at enrollment. The logic behind this is that the Enrollee is taking up a spot for however many days in advance.
Summary
Understanding the "Pay in Full" and "Payment Plan" options in Enrollsy helps ensure that customers are charged accurately, whether they pay upfront or choose a payment schedule. By correctly applying proration, you can account for any missed classes and provide a fair and transparent billing process.
Proration on a Subscription Payment Plan
How proration works on a Subscription Payment Plan is that if you choose the option "on a specific day," then the system will automatically prorate the current week or month enrolled. This means the month that the customer is enrolling will be prorated.
NOTE: One thing to keep in mind is that, within this model, people are not able to select their start date. Instead, the program begins the proration from the day that they enroll.
Weekly Proration:
Monthly Proration:
Example of Subscription Payment Plan
For example, let's say you want to use Enrollsy to manage subscriptions for a service or software plan. You need to charge $200/month every month until the customer cancels. This same situation can apply to a childcare business that provides care until the service is canceled.
You can start the subscription a week after enrollment or on a specific day (the next Monday, for example) and it will prorate the current week. Or you can start the subscription a month after enrollment or on a specific date (say, the 15th) and it will prorate the current month.