Members' fees may be prorated when they register for a class halfway through the recurring charge cycle. Proration calculates the cost per class day multiplied by the number of class days remaining in the Charge Cycle to determine that member's prorated charge amount.
When fees are set on a monthly Charge Cycle, the cost per class day can be calculated either by Session, Cycle, or Force Full Cycle:
Session
This proration method should be chosen for a short class session (less than four months), and proration should be calculated based on a consistent per-class cost.
The cost per class day is calculated based on the total fee amount for the class and the number of class days in the whole class session.
The total fee for the class is calculated by determining how many months include at least one day of the class session date range and multiplying by that the fee. The cost per class is the total fee divided by the number of class days in a class slot.
For Example, a $50 tuition fee has a Monthly Charge Cycle on the 1st for a class session that runs from January 4, 2020 - April 20, 2020, on Tuesdays and Thursdays.
This session spans four months (January, February, March, and April) and contains 30 class days.
The cost per class day is ($50 * 4) / 30 = $6.67.
Cycle
This is a suitable proration method for a long class session (more than six months), with students joining and dropping out throughout the session.
Some months have more Class Days than others, and this proration method considers that.
The cost per class day is calculated separately for each month in the class session. It is determined by taking the fee for a given month and dividing it by the number of class days in that month.
Force Full Cycle
This is a suitable proration method to use for a short to medium-length class session (6 months or less) that starts or ends partway through a billing cycle (IE, the class bills monthly on the 1st, and then the last day of the session is on the 15th of a month).
Force Full Cycle is used when a class begins after the monthly Charge Cycle, so the student is not charged for a whole month. For example, a class tuition fee is charged monthly on the 5th, but the class session starts on March 16th.
This proration method pretends that the class session aligns perfectly with each class cycle it spans and calculates the cost per class day using the Cycle Method.
If a class session does not align with a fee's monthly Charge Cycle, using this method results in prorated fees for the first and final fee installments of a class session for all members.
Examples
Setup: Class Session runs from January 4 - April 20, on Tuesdays and Thursdays @ 8 pm (30 class days)
Tuition: $50 Monthly on 1st
Session Proration
$200 total fee (Class charges full amount over 4 months * $50 fee) / 30 classes = $6.67/class
Cycle
January - 8 class days - $50 / 8 = $6.25 per class
February - 8 class days - $50 / 8 = $6.25 per class
March - 9 class days - $50 / 9 = $5.56 per class
April - 5 class days - $50 / 5 = $10 per class
Force Full Cycle
January - 9 potential class days (there is 1 day in January before class starts on Jan 2) - $50 / 9 = $5.56 per class
$44.45 first tuition installment
February - 8 class days - $50 / 8 = $6.25 per class
March - 9 class days - $50 / 9 = $5.56 per class
April - 9 potential class days (there are 4 days in April after class ends on April 21, 23, 28, 30) - $50 / 9 = $5.56 per class
$27.78 final tuition installment
Tuition Per Month
| Jan | Feb | Mar | Apr |
Session | $50 | $50 | $50 | $50 |
Cycle | $50 | $50 | $50 | $50 |
Force Full Cycle | $44.45 | $50 | $50 | $27.78 |
Cost Per Class Day Per Month
| Jan | Feb | Mar | Apr |
Session | $6.67 | $6.67 | $6.67 | $6.67 |
Cycle | $6.25 | $6.25 | $5.56 | $10 |
Force Full Cycle | $5.56 | $6.25 | $5.56 | $5.56 |