Managing funding or subsidy programs is easier than ever! 🎉 Whether you’re working with government programs, private grants, or other forms of financial aid, this feature ensures transparency, accuracy, and ease in handling subsidies for families. 🌟
This guide has you covered. Let’s dive in and unlock the full potential of Enable and Manage Funding/Subsidy! 🚀
📌 Note: This feature is only available on the portal.
📖 Table of Contents
Activate the funding management module to begin handling subsidies and funding allocations.
Learn how to set up funding entities and define calculation rules for accurate subsidy distribution.
Access Funding Management – Navigate to the funding management section.
Create a New Funding Entity – Set up a new entity for managing funding and subsidy allocations.
Customize Your Funding – Define start dates, calculation methods, and exceptional rules for funding.
Start Date – Set the date when the funding takes effect.
Set Default Calculation Method – Choose how subsidies will be calculated.
Set Exceptional Rules – Define special conditions that alter standard funding calculations.
Exceptional Rules: Supported Calculation Methods – Understand which methods can be applied under exceptional rules.
How Exceptional Rules Work – Explanation of how exceptions affect subsidy calculations.
Why Exceptional Subsidy Methods Are Incompatible with Fixed Parent Amount or Both Amounts – Learn why certain methods cannot be used together.
Why Exceptional Subsidy Amounts Conflict with Parent Fixed Price but Not Subsidy Fixed Price – Understand the limitations related to subsidy and fixed pricing.
Plan and automate adjustments to subsidy calculations over time.
🛠️ Enable Funding Management Module
Follow these simple steps to enable the Funding Management Module and streamline your subsidy and billing setup:
1️⃣ Navigate to Billing Settings:
Go to the Options page from the main menu.
Select Billing Settings.
2️⃣ Enable Fundings:
Click on Funding Settings.
Toggle on the Enable Fundings option to activate the module.
3️⃣ Set Up Parent Amounts:
Use the "Enable Adding Parent Amount" toggle to include the parent’s portion of the bill when initiating Funding Charges details.
🌟 Why This Matters
✅ Full Flexibility: Easily configure parent and subsidy contributions for transparent billing.
📊 Accurate Cost Sharing: Ensure that all parties’ financial responsibilities are clearly defined.
💼 Create Funding Entities and Manage Calculation Rules
Follow these steps to set up funding entities and customize their calculation rules for streamlined subsidy management:
1️⃣ Access Funding Management:
Go to the Options page from the main menu.
Navigate to Funding Management.
Important: Ensure that Funding is enabled, or the Funding Management tab will not appear.
2️⃣ Create a New Funding Entity:
Click the ➕ plus sign in the top-right corner of the screen.
Fill in the required details for the funding entity, including the entity’s name, description, and funding type.
Click on the newly created funding to manage its rules by opening the Calculation rules tab.
3️⃣ Customize Your Funding
Easily customize your subsidy settings by configuring key parameters under the "Calculation Rules" tab. This allows you to adapt funding to the unique needs of your center and families.
What You Can Configure
📅 Start Date:
Specify when the subsidy becomes active.
Example: If the start date is set to December 1, 2024, the subsidy will not apply to plans with start dates earlier than this.
🛠️ Default Method:
Automatically apply subsidy settings to a child’s schedule.
Note: While this provides a default setup, you can still customize the settings for individual schedules to meet specific requirements.
Types of Calculation Methods Available
1️⃣ Hourly: Tailored for time-based services like hourly childcare.
2️⃣ Percentage-based: A set percentage of the total cost is covered by the subsidy.
3️⃣ Fixed Amount:
Supports specifying a parent amount, subsidy amount, or both.
Applicable for daily, weekly, and monthly rates.
📄 Additional Resources
For detailed information about each funding type and its configuration, refer to this article: Adding Funding/Subsidy to Billing Plans.
❗ Exception Rule
The Exception Rule allows you to define specific items or products that are either:
1️⃣ Excluded from the subsidy entirely.
2️⃣ Assigned an exceptional subsidy calculation method, such as a different percentage or fixed rate.
How It Works
📋 Customization:
Specify the items, charges, or services that should follow unique rules.
These exceptions ensure certain products or services are handled differently from standard subsidy applications.
🔄 Apply Case-by-Case:
When adding a subsidy to a child’s profile, you can toggle on or off the "Applied Exception Rule" for that particular plan.
This ensures the rule doesn’t automatically apply to all plans but is handled with precision and flexibility.
🌟 Why This Matters
✅ Tailored Billing: Ensures exceptions are applied only where needed, providing personalized solutions for families.
📊 Transparent Calculations: Clarifies why specific items are treated differently, maintaining trust with parents and funding entities.
⚙️ Precise Control: Prevents broad application of exceptions, ensuring accurate and conflict-free billing.
❗ Exceptional Rules: Supported Calculation Methods
Exceptional Rules provide flexibility by supporting a variety of calculation methods to handle unique billing requirements.
Supported Methods
1️⃣ ⏳ Hourly Rates:
Assign a custom hourly subsidy to specific items or services for precise cost-sharing.
2️⃣ 📊 Percentage-Based Calculations:
Apply a unique percentage of the cost for selected items or services, ensuring tailored coverage.
3️⃣ 💵 Fixed Prices:
Set a fixed subsidy amount, applicable on a daily, weekly, or monthly basis, for specific products or services.
4️⃣ ❌ Complete Exclusion:
Exclude specific items, services, or charges from subsidy calculations entirely, requiring full payment by the parent
🌟 Why This Matters
✅ Flexible Applications: Tailors subsidies to fit unique scenarios without affecting the overall plan.
📊 Transparent Billing: Clearly defines which items receive special treatment or are excluded from subsidies.
⚙️ Controlled Customization: Empowers centers to manage subsidies with precision and alignment with their policies.
❗ Why Exceptional Subsidy Methods Are Incompatible with Fixed Parent Amount or Both Amounts
Exceptional subsidy methods cannot be applied when the default subsidy method is set to Fixed Parent Amount or Both Amounts. These methods are specifically designed to create predetermined, fixed payments shared between the parent and the subsidy provider, ensuring consistent and straightforward billing.
Why Exceptional Methods Are Incompatible
1️⃣ Fixed Parent Amount:
This method determines the exact amount the parent pays, leaving no room for recalculations or variability.
Applying exceptional methods, such as percentage-based or product-specific calculations, would disrupt this structure and create inconsistencies.
2️⃣ Both Amounts:
Similar to Fixed Parent Amount, this method establishes fixed contributions from both the parent and the subsidy provider.
Exceptional methods introduce variability that conflicts with the rigid, predetermined structure of these payments.
What Happens When These Methods Are Used
If Fixed Parent Amount or Both Amounts is selected as the default subsidy method:
The Exception Rule configuration tab will be disabled.
This ensures that subsidy calculations remain consistent and free from conflicting rules.
🌟 Why This Matters
✅ Ensures Accuracy: Prevents conflicts in subsidy calculations by maintaining the integrity of fixed payment structures.
📊 Transparent Billing: Avoids confusion for parents and funding entities by sticking to straightforward payment terms.
⚖️ Simplifies Management: Eliminates the risk of inconsistencies caused by overlapping or conflicting rules.
Examples: Why Exceptional Subsidy Methods Are Incompatible with Fixed Parent Amount or Both Amounts
Here are practical examples to illustrate why Exceptional Subsidy Methods cannot be applied when the default method is Fixed Parent Amount or Both Amounts:
Example 1: Fixed Parent Amount Conflicting with Exceptional Rules
📋 Scenario Breakdown:
Plan Total Cost: $300/month
Fixed Parent Amount: $200/month
The parent’s payment is predetermined at $200 and remains fixed, regardless of changes to the total cost.
Subsidy Covers: $100/month
The subsidy covers the remaining cost after the parent’s fixed payment.
What Happens with Exceptional Methods?
If an Exceptional Subsidy Rule is applied, such as a 10% discount on extracurricular activities, the Plan Total Cost is recalculated as follows:
1️⃣ Recalculated Plan Cost:
$300 - (10% × $300 for extracurricular discount) = $270/month
2️⃣ Conflict with Fixed Parent Amount:
The recalculated cost suggests the parent should pay a lower amount, but the Parent Fixed Amount requires the parent to still pay $200, as it is predetermined and unchangeable.
The remaining cost after the parent’s contribution would now be $70 ($270 - $200).
3️⃣ Subsidy Conflict:
The subsidy, previously set to cover $100/month, would no longer align with the recalculated balance.
Subsidy Overpayment: The system would attempt to apply $100 in subsidy to a plan that only requires $70, leading to overpayment or billing inconsistencies.
Result
The Fixed Parent Amount conflicts with recalculated plan costs due to the Exceptional Subsidy Rule, as it overrides the recalculated values and locks the parent’s payment at $200.
The subsidy contribution no longer aligns with the recalculated total, causing billing errors or requiring manual adjustments to reconcile the discrepancy.
Example 2: Both Amounts Conflicting with Exceptional Rules
📋 Scenario Breakdown:
Plan Total Cost: $500/month
👩👦 Parent Contribution: $300/month
The parent is responsible for a fixed $300 regardless of the plan’s breakdown.
💵 Subsidy Contribution: $200/month
The subsidy covers the remainder of the total cost after the parent’s fixed payment.
❗ Why Exceptional Subsidy Amounts Conflict with Parent Fixed Price but Not Subsidy Fixed Price
Exceptional subsidy amounts conflict with Parent Fixed Price because this method locks the parent’s contribution, leaving no room for recalculations. However, they are compatible with Subsidy Fixed Price because the subsidy amount can adapt without affecting the parent's fixed payment.
1️⃣ Parent Fixed Price (Parent Amount)
A Parent Fixed Price defines the exact amount the parent must pay, regardless of the total cost or any other subsidy. This serves as the final payment for the parent and overrides all other calculations.
Why Conflicts Arise:
Adding an Exceptional Subsidy Amount to a plan with a Parent Fixed Price would require recalculating the parent’s portion.
This recalculation would violate the fundamental purpose of a Parent Fixed Price, which is to remain constant and definitive.
Therefore, applying exceptional subsidies becomes incompatible because it would disrupt the fixed nature of the parent’s payment.
2️⃣ Subsidy Fixed Price
A Subsidy Fixed Price defines the specific amount the subsidy entity will cover, leaving the parent responsible for the remaining cost. Unlike the Parent Fixed Price, this does not lock the parent’s contribution.
Why Exceptional Subsidies Are Compatible:
The parent's payment can still vary based on adjustments to the subsidy, making it possible to apply Exceptional Subsidy Amounts.
Exceptional rules can be added without impacting the integrity of the plan because they only adjust the subsidy’s contribution, leaving the parent’s amount flexible.
🌟 Key Takeaways
Parent Fixed Price:
Acts as a final payment, making any recalculations (including exceptional subsidies) incompatible.
Subsidy Fixed Price:
Defines only the subsidy contribution, allowing flexibility for adjustments like exceptional rules.
Reminder
Don’t forget to save your changes after configuring your settings.
📌 Note: A notification will confirm that the system has successfully saved your settings. This confirmation indicates that the changes will take effect for invoices issued after the update.
📅 Scheduling Subsidy Calculation Changes
Easily schedule new calculation rules for your selected subsidy entity by following these steps:
How to Schedule a New Subsidy Rule
1️⃣ Access the Calculation Rules Tab:
Click on "Change Schedule" under the Calculation Rules tab.
2️⃣ Define the New Rule:
Specify the upcoming rule’s start date, default calculation method, and any exceptions for the new subsidy plan.
3️⃣ Automatic Activation:
The new plan will automatically take effect on the specified start date, ensuring seamless transitions between rules.
📌 Important Note:
Subsidy Rule Change does not modify the subsidy settings, calculations, or configurations already applied to currently scheduled children’s plans. Instead, the new rule will only apply when creating a new subsidy setup for a child’s future plan. The default settings will be recorded to streamline the setup process for new plans. Here’s the logic behind this approach:
1️⃣ Preserving Consistency in Active Plans:
Many children have customized subsidy configurations tailored to their enrollment agreements.
Automatically applying new rules to existing plans could alter individual funding calculations, leading to unexpected charges or discrepancies.
2️⃣ Ensuring Stability in Billing & Compliance:
Subsidy calculations are often based on fixed agreements, and modifying them unexpectedly could cause financial errors and compliance issues with funding entities.
Keeping previously configured subsidy rules intact ensures that ongoing plans continue as originally set without sudden disruptions.
3️⃣ Retaining Unique Subsidy Configurations Per Child:
Different children have different subsidy setups, and it does not make sense to assume that a rule change should automatically apply to all children.
Each child’s subsidy calculation is unique, and mass updates could incorrectly modify subsidies that were specifically tailored for individual plans.
4️⃣ Applying New Rules for Future Plans Only:
When a new subsidy plan is created for a child, the system will apply the latest recorded default settings for efficiency.
This streamlines new subsidy setups while ensuring that existing subsidies remain accurate and stable.
📌 Conclusion:
This approach maintains accuracy, financial stability, and compliance, ensuring that subsidy updates are applied efficiently to new enrollments without disrupting active ones. Most importantly, it allows each child to retain their unique subsidy configuration without being impacted by new rule changes.
Tracking Subsidy Rule Changes
📋 Past and Upcoming Rules:
The list on the left-hand side keeps a detailed record of all past and upcoming subsidy rules for easy reference.
📊 Multiple Rule Changes:
You can schedule multiple subsidy rule changes as needed to accommodate dynamic requirements.
Why This Matters
✅ Seamless Transitions: Ensures subsidy calculations are updated smoothly without manual adjustments.
📊 Historical Tracking: Provides a clear log of all rule changes for auditing and reference.
⚙️ Flexible Customization: Allows you to plan and implement changes tailored to your center’s needs.
📄 Additional Resources – Explore More!
Looking for a deeper understanding of subsidy calculations and management? We've got you covered!
📌 Learn More About:
✅ The various subsidy calculation methods and how they impact billing.
✅ Step-by-step guidance on setting up exceptional rules for individual children’s plans.
📖 Dive into our article: Adding Funding/Subsidy to Billing Plans – Your go-to guide for setting up and managing subsidies with ease!
💡 Want to streamline subsidy tracking and ensure accurate financial reconciliation?
📊 Check out: Reconcile and Track Subsidy Transactions with Confidence – Master subsidy management like a pro!
✨ Empower yourself with the right tools and knowledge to handle funding efficiently! 🚀