This article explains how the system calculates long-stay recurring billing schedules. Learn how the system divides reservation balances, handles partial billing periods, applies upfront payments, and manages reservation changes.
Understanding proration
Proration applies automatically when a booking starts or ends partway through a billing cycle. This happens with both equal installments and custom recurring amounts. The chosen anchor date defines the regular billing cycle, and the system separates prorated charges into distinct scheduled payments instead of combining them with full installments.
Weekly: Partial weeks prorate based on the specific number of days active in the seven-day billing period.
Bi-weekly: Partial bi-weekly periods prorate based on the specific number of days active in the 14-day billing period.
Monthly: Partial monthly periods prorate using the actual calendar-day count for that specific month.
Note:
For anchor-based monthly schedules, a partial move-in period runs from the check-in date until the first anchor date. The system processes this charge on the check-in date. A partial final period processes at the start of that final partial period.
Understanding installment calculation methods
You decide how the system divides the total balance due across the billing cycle.
Equal installments
The system calculates equal amounts for every full recurring period. If the stay includes a partial move-in or move-out period, those periods prorate automatically. The system routes any minor rounding differences into the final scheduled charge to reach the exact reservation balance due.
Custom recurring amounts
The fixed amount you input determines the charge for every full billing cycle. Partial cycles still prorate automatically based on your custom rate. Because total installment charges can't exceed the reservation total, the final scheduled cycle automatically adjusts to collect only the remaining balance due.
Applying upfront payments as rent credits
Upfront payments function as prepaid rent credits. The system first builds the regular recurring schedule, calculates any partial-period proration, and then applies the upfront payment as a credit to reduce future scheduled transactions.
First installment upfront: Applies from the beginning of the schedule forward, reducing the earliest scheduled rent charges first.
Last installment upfront: Applies from the end of the schedule backward, reducing the latest scheduled rent charges first.
First and last installments upfront: Applies one full credit to the beginning and one full credit to the end of the timeline without creating double coverage.
Custom upfront amount: Deducts the custom amount from the total rent balance first, then calculates the remaining installment amounts from the reduced balance.
Important:
The credit amount for a first or last installment upfront matches the cost of one full recurring period. This rule applies even if the reservation contains a partial first or last period. If a short booking has a total balance lower than a full period value, the system caps the upfront collection to match the exact reservation balance due.
Handling reservation changes and cancellations
Schedules adjust dynamically when bookings change or guests cancel their stays.
- Active reservation changes
If a stay length, pricing structure, or invoice item changes, the system automatically recalculates all future scheduled installment charges. Completed or currently processing charges never change retroactively.
- Reservation cancellation
Canceling a reservation stops all future pending installment charges immediately. Succeeded and failed payments remain locked in the payment history. If you configure an automatic refundable deposit refund, the system initiates the refund process immediately upon cancellation.
- Missing payment methods
If an eligible reservation lacks a valid payment method, scheduled installments remain in "Pending" status. The system holds the transactions until a payment method is added, then processes the balance using the standard payment engine rules.
Billing schedule examples
Review these scenarios to see how the system structures different payment rules.
Check-in: January 15
Check-out: May 1
Reservation balance due: $3,500
Payment cycle: Monthly
Charge timing: Same day as check-in
Installment amount: Equal installments
The guest pays on the same calendar day each month. Because the final month is incomplete, the final payment prorates automatically.
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| January 15 | $1,000 | First full monthly period |
| February 15 | $1,000 | Second full monthly period |
| March 15 | $1,000 | Third full monthly period |
| April 15 | $500 | Prorated final period ending May 1 |
| Total | $3,500 | Reservation balance due |
Check-in: March 15
Check-out: July 15
Reservation balance due: $4,000
Payment cycle: Monthly
Charge timing: Specific day of the month: the 1st
Installment amount: Equal installments
Because check-in occurs between regular monthly billing dates, both the first and final cycles are partial periods. They process as separate, prorated charges.
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| March 15 | $500 | Prorated move-in period until April 1 |
| April 1 | $1,000 | Full monthly period |
| May 1 | $1,000 | Full monthly period |
| June 1 | $1,000 | Full monthly period |
| July 1 | $500 | Prorated final period ending July 15 |
| Total | $4,000 | Reservation balance due |
Check-in: March 15
Check-out: July 15
Reservation balance due: $4,000
Payment cycle: Monthly
Charge timing: Specific day of the month: the 1st
Installment amount: Equal installments
Upfront payment: First installment collected at booking confirmation
The first installment collects at booking confirmation as prepaid rent and covers the earliest parts of the timeline.
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| At booking confirmation | $1,000 | Upfront payment applied as prepaid rent |
| March 15 | $0 | Prorated move-in payment ($500) is fully covered by the credit |
| April 1 | $500 | Remaining upfront credit ($500) applies to this period |
| May 1 | $1,000 | Full monthly period |
| June 1 | $1,000 | Full monthly period |
| July 1 | $500 | Prorated final period ending July 15 |
| Total collected | $4,000 | Reservation balance due |
Check-in: March 15
Check-out: July 15
Reservation balance due: $4,000
Payment cycle: Monthly
Charge timing: Specific day of the month: the 1st
Installment amount: Equal installments
Upfront payment: Last installment collected at booking confirmation
The last installment collects at booking confirmation as prepaid rent and covers the end of the timeline backward.
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| At booking confirmation | $1,000 | Upfront payment applied as prepaid rent |
| March 15 | $500 | Prorated move-in period |
| April 1 | $1,000 | Full monthly period |
| May 1 | $1,000 | Full monthly period |
| June 1 | $500 | Remaining charge after applying the upfront credit |
| July 1 | $0 | Prorated final period is fully covered by the credit |
| Total collected | $4,000 | Reservation balance due |
Check-in: April 15
Check-out: June 15
Reservation balance due: $3,000
Payment cycle: Monthly
Charge timing: Specific day of the month: the 1st
Installment amount: Custom recurring amount of $500
The custom amount fixes the price for full cycles. Incomplete cycles still prorate, and the final payment balances the remaining account total.
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| April 15 | $266.67 | Prorated move-in period from April 15 until May 1 |
| May 1 | $500 | Full monthly period |
| June 1 | $2,233.33 | Remaining reservation balance |
| Total | $3,000 | Reservation balance due |
Check-in: Wednesday, September 2
Check-out: Wednesday, October 14
Reservation balance due: $3,000
Payment cycle: Every two weeks
Charge timing: Monday
Installment amount: Equal installments
The first charge schedules for the first designated weekday on or after check-in. Following charges process exactly every 14 days.
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| Wednesday, September 2 | $357.14 | Partial period from check-in until the first Monday |
| Monday, September 7 | $1,000 | First full 14-day period |
| Monday, September 21 | $1,000 | Second full 14-day period |
| Monday, October 5 | $642.86 | Final partial period ending October 14 |
| Total | $3,000 | Reservation balance due |
Check-in: January 15
Check-out: May 1
Reservation balance due: $3,500
Payment cycle: Monthly
Charge timing: Same day as check-in
Installment amount: Equal installments
Refundable deposit: $600 collected at booking confirmation, automated refund seven days after check-out
The refundable deposit processes as an independent transaction and doesn't alter the core rent calculations.
Rent installment schedule
| Charge date | Amount charged | What the payment covers |
|---|---|---|
| January 15 | $1,000 | First full monthly period |
| February 15 | $1,000 | Second full monthly period |
| March 15 | $1,000 | Third full monthly period |
| April 15 | $500 | Prorated final period ending May 1 |
| Total rent collected | $3,500 | Reservation balance due |
Refundable deposit schedule
| Date | Amount | What happens |
|---|---|---|
| At booking confirmation | $600 | Refundable deposit charges separately from rent |
| May 8 | -$600 | Deposit automatically refunds seven days after check-out |