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Can clients pay at the end of the month, instead of pre-paying?
Can clients pay at the end of the month, instead of pre-paying?

How to set billing plans for clients to pay in arrears

Gnomes avatar
Written by Gnomes
Updated over a week ago

Why are Billing Plans Designed for Pre-Payment?

The Food Corridor's monthly billing plans are set-up for clients to pre-pay their kitchens for that month's usage. Similar to a gym membership or rent. Pre-payment helps guarantee monthly cash flow, and it sets a base number of hours or spendable amount that clients pay for the month.

However, some kitchens prefer for their clients to pay in arrears, or at the end of the month. This is entirely doable.

How Billing in Arrears will Work

Booked time spent over this $0 amount or 0 hours (all time used in the kitchen that month) will be charged at the hourly rates per calendar including off peak rates (for a Credit Based Plan), or charged at the Overage Tier rates (for a Time Based Plan).

The "overage" amount that the client uses during the month will be added up and included on the client's next monthly invoice, on the 1st of the following month, and the client will then be billed for this amount on the kitchen's billing date (5th).

For example, all bookings that occurred in January will appear on the client's February 1st bill as "overage hours," and they will be billed for these bookings on the 5th of February. Additionally, all equipment booked in January (that has a cost associated with it) will also be added up and appear on the February invoice.

Note: Equipment will be billed in this manner, regardless of the plan and how it is set-up.

Setting up a Billing Plan for Payment in Arrears

Go to Settings > Billing Plans > New Credit Based or Time Based Billing Plan.

  • Credit Based Plan: Name the plan, describe it, and set the monthly credit to "0."

  • Time Based Plan: Name the plan, describe it, and set the base monthly rate to $0 for 0 hours. Add the hourly rate(s) you wish to charge for the hours used under Overage Tiers.

Items Still Billed as Pre-Payment

A few billings will still be billed as pre-payment for the upcoming month, regardless of the plan and how it is set-up. These include:

  • Recurring monthly kitchen fees assigned to the client (e.g. cleaning fees)

  • Storage assigned to the client

Additionally, all other "immediate billings" are still billed within 24 hours (or on the spot):

  • One-time kitchen fees assigned to a client

  • Cancellation fees assigned to a client

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