Package Billing Method Overview

In what situation would I use this billing method?

You would use this if you bill your customers in advance for a package of hours or lessons that they will use over an undefined period of time.

How does this billing method work?

With this billing method, the customer is invoiced for a package of lessons or hours of a particular service.  When lessons with the same service as the package are scheduled and attended by the client, the client’s package balance is reduced.  

How is the customer charged?

The customer is charged for a package when you generate an invoice and use the “Add Package” option to add a package to the invoice.  In the package row, you will select the service for the package, enter the number of lessons or hours in the quantity field, and enter the cost per lesson or hour in the cost field. The quantity multiplied by the unit price will determine the total cost of the package.

The service, number of units and cost is set on the invoice.  You would not use the “Lessons by Date” option on the invoice when invoicing a client that is billed using this method.

Because the client pays for the package and not for individual lessons, when you schedule lessons for a student using the “Package” billing method, the cost of their lessons is set to zero.

What settings can I use to customize how I track package balances?

You can adjust the following settings on the “Account Settings” page under “Package Settings”.

Package Units - You can track packages by lesson or by hour.

Counting Missed as Used - You can choose to count lessons marked as “Missed” as used, which will deduct them from the package.  By default, missed lessons are not counted as used.

Package Availability - You can choose to make packages available when an invoice with a package is either approved or paid.

Package Tracking - You can track packages by family or student.

How should I set up services for packages?

If you have services in your Services list that are used for both packages and for individual lessons, it’s best to create a separate service for use with packages.  For example, if you have a service called “English Tutoring” you should create a separate service called “English Tutoring - Package” that will be used for package lessons.

What steps do I need to follow to use this method in Teachworks?

Note: If you were using the package billing method on a different software, you can set up starting package balances for your customers by following these instructions: Starting Package Balances.

  1. Begin by customizing your package settings on your Account Settings page under the Package Settings section.

  2. On the student's profile, set their billing method to "Package" and save the change.

  3. Create an invoice for the client and select the "Add Package" option in the line item section of the invoice and click the "Go" button.  

  4. Complete the details of the package including setting the service, units, and cost for the package.

  5. Approve the invoice.   Depending on your settings the invoice may also need to be paid before the package is available to the client.

  6. Schedule lessons.  When you select the student's name in the student field, the services list will be updated to display any package hours that are available to the student. Select the service matching the package service and schedule the lesson.

How are package balances calculated and where can I see them?

A customer's package balance is the total of the package lessons or hours that they have purchased of a particular service type, minus the lessons that have been scheduled or attended with the same service type as the package.  

You can view package balances under “Accounting” tab by clicking “Package Balances”.

What if I want to bill a client for packages and individual lessons?

If you have students that are billed using the package method, but also may have lessons that are not included in a package, you should set the student’s billing method to “Package”, and use the Cost Override feature to schedule a lesson that will be assigned a cost whenever you need to bill the customer for an individual lesson.

In order to accurately track balances and ensure that lessons billed individually are not deducted from a package, you will need to use separate services for package lessons and individual lessons.  For example, you can create services named “English Tutoring” and “English Tutoring - Package”. When scheduling a lesson to be billed individually, simply select the “non-package” service, and click the  “Override Billing Method” option then select the appropriate billing method.

Need some more help? Watch this video on how to create packages for your clients.

Feedback and Knowledge Base