🏦 Adding Funding/Subsidy to Billing Plans
Managing funding and subsidies has never been more efficient! 🎉 Whether you’re supporting families with financial assistance or streamlining your center’s billing processes, the funding setup feature ensures your plans are both accurate and customized to your needs.
With just a few easy steps, you can integrate funding allocations seamlessly into billing plans, enhancing transparency and reducing administrative workload. Say goodbye to manual calculations and hello to a smarter, more organized system! 💻✨
💡 Important Note: The setup and management of funding or subsidies are only available on the portal. This ensures you have access to the advanced tools and secure environment necessary for handling sensitive financial data with confidence.
📖 Table of Contents
A comprehensive guide to adding and configuring subsidies in billing plans.
Choose the Subsidy Calculation Method – Select the most suitable subsidy calculation method for the plan.
Hourly Subsidy – Apply subsidies based on hourly usage.
Percentage Subsidy – Calculate subsidies as a percentage of total charges.
Fixed Subsidy – Apply a fixed subsidy amount regardless of usage.
Exploring the Different Types of Fixed Subsidy – Understand the variations in fixed subsidy models.
Parent Amount Configuration – Set fixed contributions from parents.
Subsidy Amount Configuration – Define the funding entity’s fixed contribution.
Both Subsidy Amount Configuration – Define and Balance contributions between parents and subsidies.
Configure Chargeable Days for Subsidy Settings – Define which days subsidies apply in daily, weekly and monthly fixed subsidy setups.
Why You Need to Set Up Chargeable Days for Fixed Subsidy Settings – Understand the importance of configuring chargeable days for consistent billing.
Learn how actual subsidies calculations are calculated and applied on monthly Plans
Handle special cases where subsidies follow custom calculation rules.
Explore a detailed breakdown of how funding charges are calculated for each product, along with the expected charge amounts
Understand how subsidies and discounts are applied in the billing sequence.
Best practices for handling multiple subsidies for a single payer.
Learn how to configure multiple subsidies within a single plan
Locate and track subsidy charges within the system.
🛠️ Step-by-Step Guide: How to Add a Subsidy to Billing Plans
1️⃣ 👤 Navigate to the Child’s Profile:
Go to the child’s profile page and select either the Plan/Schedule tab
2️⃣ 📋 Set Up the Plan:
Configure the child’s plan or schedule as needed, ensuring all necessary details are in place.
➕ Add Subsidies:
Click the Add Subsidies button to input the funding details.
🔍 Select a Subsidy:
Browse through the provided list of subsidies.
Toggle the Enable option for the selected subsidy that best fits the child’s eligibility or funding requirements to activate it.
👥 Select the Payers:
Choose one or more payers who will share the bill.
💡 Note: If multiple payers are involved, each payer will have a unique subsidy configuration tailored to their share of the bill.
⚖️ Choose the Subsidy Method:
Select the type of subsidy for each payer:
⏳ Hourly: Apply subsidies based on the number of hours used.
📊 Percentage: Allocate subsidies as a percentage of the total bill.
💵 Fixed Amount: a predetermined, unchanging sum that remains consistent regardless of the hours used or the total cost of the bill.
⏳ Hourly Subsidy
The subsidy covers an hourly rate for sessions with specific time availability per day (e.g., 3 PM to 5 PM). Hourly subsidies apply only to time-based services (sessions) and do not extend to charges, items, or packages:
Charges: Typically, flat amounts without a time component.
Items: are usually products or services sold at a fixed price, not tied to time usage.
Packages: bundle multiple services or items together, often with a fixed cost, rather than being priced based on time increments, making it impractical to calculate costs based on hourly rates.
✨ Key Details
1️⃣ Applies to Time-Based Sessions:
Hourly subsidies are calculated based on the time a service is used within the designated period.
2️⃣ Does Not Apply to the Following:
💵 Charges: Flat amounts without a time component, such as registration fees.
📦 Items: Products or services sold at a fixed price, like meals or art supplies, which are not tied to time usage.
📋 Packages: Bundled services or items priced with a fixed cost, making it impractical to calculate costs based on hourly rates.
💡Example for Hourly Rate
📋 Scenario:
A child attends a session from 3 PM to 5 PM, and the hourly subsidy rate is $5/hour.
🧮 Calculation:
Duration: 2 hours
Subsidy: $5 × 2 = $10
The subsidy covers $10 for the two-hour session, reducing the overall cost for the family.
🌟 Why Use Hourly Subsidies?
✅ Flexibility: Ideal for time-based services that vary in duration or attendance.
📊 Accurate Billing: Ensures families only receive subsidies for the time their child is actively using the service.
💵 Cost Efficiency: Matches financial support to the specific time periods services are utilized.
% Percentage Subsidy
A percentage subsidy provides financial support by covering a set percentage of the total cost of a billing plan. This type of subsidy is versatile and applies to all product types, including sessions, items, packages, and charges.
✨ Key Features
1️⃣ Applies to All Product Types:
⏳ Sessions: Time-based services (e.g., after-school care).
📦 Packages: Bundled services (e.g., meal plans with extracurricular activities).
🛒 Items: Individual products or services (e.g., books, uniforms).
💵 Charges: Flat fees (e.g., registration fees or late pickup charges).
2️⃣ Consistent Percentage:
The subsidy rate remains the same across all applicable product types.
💡 Examples of Percentage Subsidy Scenarios
📚 Scenario 1: Sessions
📋 Plan:
A child attends 20 hours of after-school care per week at a rate of $10/hour.
💵 Subsidy:
The family is eligible for a 50% subsidy on the total weekly cost.
🧮 Calculation:
Hourly Rate: $10/hour
Total Weekly Hours: 20 hours
Total Cost: $10 × 20 = $200/week
Subsidy Amount:
50% of $200 = $100/week
Final Cost for the Family:
Total Cost - Subsidy = $200 - $100 = $100/week
🌟 Result:
The family pays $100/week after the subsidy is applied, effectively reducing their financial burden by 50%.
📦 Scenario 2: Packages
📋 Plan:
A package includes weekly meals and activities priced at $150/month.
💵 Subsidy:
The family is eligible for a 30% subsidy on the package.
🧮 Calculation:
Total Monthly Package Cost: $150/month
Subsidy Amount:
30% of $150 = 0.30 × $150 = $45/month
Final Cost for the Family:
Total Cost - Subsidy = $150 - $45 = $105/month
🌟 Result:
The family pays $105/month after the subsidy is applied, making the package more affordable while covering essential services..
💵 Fixed Subsidy
A fixed subsidy allows you to specify a fixed amount of financial support for a billing plan. This subsidy can be allocated on an daily, weekly, or monthly basis, depending on the center's setup and family requirements.
✨ Key Features
1️⃣ Flexible Allocation:
Enter the subsidy portion, the parent portion, or both.
2️⃣ Time-Based Options:
Fixed subsidies can be applied hourly, weekly, or monthly, providing tailored support for various billing plans.
💡 Example Calculations for Fixed Subsidy
Scenario 1: Daily Fixed Subsidy
📋 Plan:
A child attends after-school care costing $30/day.
💵 Subsidy Portion:
The center offers a fixed subsidy of $10/day.
👩👦 Parent Portion:
The parent is responsible for $20/day.
🧮 Calculation:
If the child attends 5 days a week:
Subsidy: $10 × 5 = $50/week
Parent Pays: $20 × 5 = $100/week
Total Cost: $30 × 5 = $150/week
🌟 Result:
The subsidy reduces the total weekly cost, allowing the family to pay $100/week instead of the full amount of $150/week, easing their financial burden.
📆 Scenario 2: Weekly Fixed Subsidy
📋 Plan:
Weekly childcare costs $300/week.
💵 Subsidy Portion:
The center provides a fixed subsidy of $100/week.
👩👦 Parent Portion:
The parent is responsible for $200/week.
🧮 Calculation:
Subsidy: $100/week
Parent Pays: $300 - $100 = $200/week
🌟 Result:
The subsidy reduces the parent’s share to $200/week, making weekly childcare more affordable.
📅 Scenario 3: Monthly Fixed Subsidy
📋 Plan:
Monthly childcare costs $1,200/month.
💵 Subsidy Portion:
The center provides a fixed subsidy of $400/month.
👩👦 Parent Portion:
The parent is responsible for $800/month.
🧮 Calculation:
Subsidy: $400/month
Parent Pays: $1,200 - $400 = $800/month
🌟 Result:
The subsidy covers $400/month, leaving the parent responsible for $800/month while easing their financial burden.
💵 Exploring the Different Types of Fixed Subsidy
Parent Amount
The Parent Amount option allows you to define the portion of the cost that the parent is responsible for paying, rather than specifying the subsidy amount directly.
✨ When to Use "Parent Amount"
1️⃣ 💳 Fixed Parent Contribution:
Ideal when the parent consistently pays a specific amount, regardless of the subsidy provided.
2️⃣ 🔄 Dynamic Subsidy Amount:
Useful when the subsidy varies and needs to be calculated as the remaining balance after the parent's portion is deducted from the total cost.
3️⃣ 📄 Transparent Billing:
Clearly displays both the parent’s portion and the subsidy contribution on invoices, offering full visibility and reducing confusion.
💡 Examples of Fixed Parent Amount Type
📆 Case 1: Daily Fixed Parent Amount
📋 Plan Cost:
$40/day
👩👦 Parent Amount:
$125/week
💵 Subsidy:
Calculated as $40 × 5 days = $200 - $125 = $75/week
🧮 Scenario
If the child attends 5 days a week:
👩👦 Parent Pays: $125/week
💵 Subsidy Covers: $75/week
📊 Total Weekly Cost: $125 (parent) + $75 (subsidy) = $200/week
📅 Case 2: Weekly Fixed Parent Amount
📋 Plan Cost:
$300/week
👩👦 Parent Amount:
$600/month
💵 Subsidy:
Calculated as $300 × 4 weeks = $1,200 - $600 = $600/month
🧮 Scenario
If the plan spans 4 weeks:
👩👦 Parent Pays: $600/month
💵 Subsidy Covers: $600/month
📊 Total Monthly Cost: $600 (parent) + $600 (subsidy) = $1,200/month
📅 Case 3: Monthly Fixed Parent Amount
📋 Plan Cost:
$1,000/month
👩👦 Parent Amount:
$200/week
💵 Subsidy:
Calculated as $200 × 4 weeks = $800 - $1,000 = $200/month
🧮 Scenario
If the plan spans 4 weeks:
👩👦 Parent Pays: $200 × 4 = $800/month
💵 Subsidy Covers: $200/month
📊 Total Monthly Cost: $800 (parent) + $200 (subsidy) = $1,000/month
Subsidy Amount
The "Subsidy Amount" option allows you to define the exact portion of the cost that the subsidy entity will cover within the billing schedule.
✨ When to Use "Subsidy Amount"
1️⃣ 💳 Fixed Subsidy Contribution:
Ideal when the subsidy entity consistently covers a specific amount for each session, item, or package, ensuring predictable financial support.
2️⃣ 🔄 Defined Subsidy Coverage:
Perfect for cases where the subsidy amount is predetermined and does not vary based on the remaining balance after deducting the parent’s share.
3️⃣ 📄 Invoice Transparency:
Clearly indicates the subsidy contribution on invoices, separate from the parent’s portion, ensuring both parties understand their respective responsibilities.
💡 Examples of Fixed Subsidy Amount Configuration
📆 Scenario 1: Fixed Subsidy Contribution (Daily Plan)
📋 Plan Details:
Daily childcare costs $45/day.
The subsidy covers a fixed amount of $20/day, regardless of the total daily cost.
The parent is responsible for the remaining balance.
🧮 Calculation
💵 Daily Subsidy: $20/day
👩👦 Parent Pays: $45 - $20 = $25/day
If the child attends 5 days in a week:
💵 Total Subsidy: $20 × 5 = $100/week
👩👦 Parent Pays: $25 × 5 = $125/week
📊 Total Weekly Cost: $100 (subsidy) + $125 (parent) = $225/week
📆 Scenario 2: Defined Subsidy Coverage (Daily Plan with Weekly Subsidy)
📋 Plan Details:
Daily childcare costs $64/day.
The subsidy provides a fixed amount of $100/week, regardless of the number of days attended.
🧮 Calculation
💵 Daily Cost: $64/day
If the child attends 5 days a week:
📊 Total Weekly Cost: $64 × 5 = $320/week
💵 Subsidy: $100/week
👩👦 Parent Pays Weekly: $320 - $100 = $220/week
If the plan spans 4 weeks:
💵 Total Weekly Subsidy: $100 × 4 = $400/month
👩👦 Parent Pays Monthly: $220 × 4 = $880/month
📊 Total Monthly Cost: $400 (subsidy) + $880 (parent) = $1,280/month
📦 Scenario 3: Invoice Transparency (Daily Subsidy for Item Purchase)
📋 Plan Details:
The daycare sells art supplies at $90/item.
The subsidy provides a fixed daily contribution of $10/day towards the cost of items.
🧮 Calculation
💵 Subsidy Amount Per Day: $10/day
If the family purchases 4 items over 3 days:
📊 Total Item Cost: $90 × 4 = $360
💵 Total Subsidy (3 days): $10 × 3 = $30
👩👦 Parent Pays: $360 - $30 = $330
📄 Invoice Breakdown
📊 Total Cost of Items: $360
💵 Subsidy Contribution: $30 (over 3 days)
👩👦 Parent Responsibility: $330📅 Scenario 4: Fixed Subsidy for Packages
📦 Scenario 4: Fixed Subsidy for Monthly Package
📋 Plan Details:
A package including meals and extracurricular activities costs $550/month.
The subsidy provides a fixed contribution of $200/month, regardless of the package’s contents.
🧮 Calculation
💵 Monthly Subsidy: $200
👩👦 Parent Pays: $550 - $200 = $350/month
If the plan spans 3 months:
💵 Total Subsidy: $200 × 3 = $600
👩👦 Parent Pays: $350 × 3 = $1,050
📊 Total Cost: $600 (subsidy) + $1,050 (parent) = $1,650
Both Amounts Setup
The "Both Amounts" option allows you to define the exact contributions from both the parent and the subsidy for each day in the schedule. This method ensures a clear and precise breakdown of cost-sharing, making it ideal for specific financial arrangements.
✨ When to Use the "Both Amounts" Option
1️⃣ ⚖️ Fixed Cost Splits:
Use this option when you need to divide daily costs between the parent and the subsidy with fixed contributions from both, regardless of the plan's actual cost.
2️⃣ 📊 Total Cost as a Sum:
When the total daily cost must be calculated as the sum of the parent’s portion and the subsidy amount, ensuring clarity in financial contributions.
3️⃣ 🔍 Explicit Control:
When you want to control both portions explicitly, ensuring no ambiguity in how costs are shared between the parent and the subsidy.
💡 Examples of Both Amounts Subsidy Scenarios
📆 Scenario 1: Daily Plan with Monthly Parent and Subsidy Contributions
📋 Plan Details:
Total Daily Cost: $50/day
Parent’s Monthly Contribution: $600/month
Subsidy’s Monthly Contribution: $400/month
🧮 Calculation
📅 Total Monthly Days: Assuming the child attends 20 days in a month.
📊 Total Monthly Cost: $50 × 20 = $1,000/month
Contributions:
👩👦 Parent Pays: $600/month
💵 Subsidy Covers: $400/month
📊 Total Contributions: $600 (parent) + $400 (subsidy) = $1,000/month
📉 Daily Breakdown
👩👦 Daily Parent Contribution: $600 ÷ 20 = $30/day
💵 Daily Subsidy Contribution: $400 ÷ 20 = $20/day
📊 Total Daily Cost Covered: $30 (parent) + $20 (subsidy) = $50/day
📆 Scenario 2: Adjusted Fixed Split for Partial Days
📋 Plan Details:
Total Daily Cost: $40/day
👩👦 Parent Pays: $25/day
💵 Subsidy Covers: $15/day
🧮 Calculation
📊 Total Daily Cost: $25 (parent) + $15 (subsidy) = $40/day
If the child attends 3 days:
👩👦 Parent Pays: $25 × 3 = $75
💵 Subsidy Covers: $15 × 3 = $45
📊 Total Cost: $75 (parent) + $45 (subsidy) = $120
📆 Scenario 3: Contribution Exceeds Plan’s Total Cost
📋 Plan Details:
Total Daily Cost: $45/day
👩👦 Parent Pays: $30/day
💵 Subsidy Covers: $20/day
🧮 Calculation
📊 Total Contributions: $30 (parent) + $20 (subsidy) = $50/day
⚠️ Difference: $50 (contributions) - $45 (plan cost) = $5 excess/day
If the child attends 5 days:
👩👦 Parent Pays: $30 × 5 = $150
💵 Subsidy Covers: $20 × 5 = $100
📊 Total Contributions: $150 (parent) + $100 (subsidy) = $250
📉 Total Plan Cost: $45 × 5 = $225
⚠️ Excess: $250 - $225 = $25 total excess
🛠️ How Excess is Handled
📋 Parent Credit: The extra $5/day can be credited to the parent’s account for future charges.
🍎 Additional Costs: Alternatively, the excess can cover extra charges, such as snacks or extracurricular activities.
📆 Scenario 4: Contribution Falls Short of Plan’s Total Cost
📋 Plan Details:
Total Daily Cost: $60/day
👩👦 Parent Pays: $35/day
💵 Subsidy Covers: $20/day
🧮 Calculation
📊 Total Contributions: $35 (parent) + $20 (subsidy) = $55/day
⚠️ Difference: $60 (plan cost) - $55 (contribution) = $5 shortfall/day
If the child attends 4 days:
👩👦 Parent Pays: $35 × 4 = $140
💵 Subsidy Covers: $20 × 4 = $80
📊 Total Contributions: $140 (parent) + $80 (subsidy) = $220
📉 Total Plan Cost: $60 × 4 = $240
⚠️ Shortfall: $240 - $220 = $20 additional owed by the parent
🛠️ How Shortfall is Handled
⚠️ Discarded: The extra $5/day shortfall will not be credited automatically.
🛠️ Manual Adjustment: The remaining $5/day must be manually added as a charge to the parent’s account to ensure proper reconciliation of accounts.
📅 Set Chargeable Days
For all subsidy methods—whether hourly, percentage-based, or fixed—you can customize the specific days on which either the parent or the subsidy is responsible for payment.
Example 1: Hourly Rate Subsidy with Parent and Subsidy Portions
💵 Subsidy Rate: $5/hour
💵 Plan Hourly Cost: $15/hour
📅 Subsidy Applicable Days: Subsidy applies only on Monday and Thursday.
🧮 Scenario
Hourly Cost: $15/hour
👩👦 Parent and Subsidy Split:
Subsidy covers $5/hour on applicable days.
Parent covers the remaining balance on subsidy days and the full hourly rate on non-subsidy days.
If the child attends for 2 hours on Monday, Thursday, Tuesday, and Friday:
1️⃣ Monday and Thursday (Subsidy Days):
💵 Subsidy Covers: $5/hour × 2 hours = $10/day
👩👦 Parent Pays: $15/hour × 2 hours - $10 (subsidy) = $20/day
2️⃣ Tuesday and Friday (Non-Subsidy Days):
👩👦 Parent Pays: $15/hour × 2 hours = $30/day
Total Weekly Cost
Subsidy Covers:
$10/day × 2 subsidy days = $20/week
👩👦 Parent Pays:
$20/day × 2 subsidy days + $30/day × 2 non-subsidy days = $100/week
📊 Grand Total Weekly Cost:
$20 (subsidy) + $100 (parent) = $120/week
Example 2: Percentage Rate Subsidy
📊 Subsidy Rate: Covers 40% of the total cost.
📅 Plan Monthly Cost: $1,200/month
📅 Subsidy Applicable Days: Subsidy applies Monday to Friday.
🧮 Scenario
If the child attends 8 hours daily for 5 days per week at $10/hour, the total monthly cost is $1,200.
Calculation:
1️⃣ Monthly Cost:
Total Monthly Cost: $1,200/month
2️⃣ Subsidy Covers:
40% of $1,200 = $480/month
3️⃣ Parent Pays:
Total Cost - Subsidy = $1,200 - $480 = $720/month
Weekly Breakdown (Optional)
If you want to calculate weekly contributions for 4 weeks:
Weekly Cost: $1,200 ÷ 4 = $300/week
📊 Subsidy Covers Weekly: 40% × $300 = $120/week
👩👦 Parent Pays Weekly: $300 - $120 = $180/week
Example 3: Fixed Subsidy Amount (Daily)
💵 Subsidy Amount: $20/day
📅 Plan Weekly Price: $150/week
📅 Subsidy Applicable Days: Subsidy applies only on Monday, Tuesday, and Wednesday.
🧮 Scenario
If the child attends 5 days (Monday to Friday):
1️⃣ Subsidy Days (Monday, Tuesday, Wednesday):
💵 Subsidy Contribution: $20/day × 3 days = $60/week
2️⃣ Non-Subsidy Days (Thursday, Friday):
👩👦 Parent Pays: Full daily rate on Thursday and Friday = $150 ÷ 5 days × 2 = $60 for 2 days
3️⃣ Remaining Parent Contribution:
👩👦 Parent covers the balance of the plan cost after the subsidy:
Total Weekly Cost: $150
Subsidy Covers: $60
👩👦 Parent Pays: $150 - $60 = $90/week
Summary of Costs
💵 Subsidy Contribution: $60/week (Monday to Wednesday)
👩👦 Parent Pays: $90/week (Thursday, Friday + balance of subsidized days)
📊 Total Weekly Cost: $60 (subsidy) + $90 (parent) = $150/week
Example 4: Fixed Parent Amount (Weekly)
👩👦 Parent Contribution: $60/week
📅 Plan Daily Cost: $15/day
📅 Applicable Days: Parent pays a fixed weekly rate for Monday to Friday.
🧮 Scenario
If the child attends all 5 days (Monday to Friday):
1️⃣ Total Weekly Plan Cost:
$15/day × 5 days = $75/week
2️⃣ Parent Pays (Fixed Weekly Contribution):
👩👦 Parent Contribution: $60/week
3️⃣ Subsidy Covers (Remaining Balance):
💵 Subsidy Contribution: $75 - $60 = $15/week
Summary of Costs
👩👦 Parent Pays: $60/week
💵 Subsidy Covers: $15/week
📊 Total Weekly Cost: $60 (parent) + $15 (subsidy) = $75/week
Example 5: Fixed Parent and Subsidy Contribution (Monthly)
👩👦 Parent Pays: $300/month
💵 Subsidy Covers: $300/month
📅 Plan Daily Cost: $32/day
📅 Applicable Days: Contributions cover all available weekdays in the month (e.g., 20 days).
🧮 Scenario
If the child attends 16 days out of the 20 available weekdays in the month:
Parent Contribution Breakdown:
👩👦 Parent pays $300/month, which is fixed, regardless of the child’s actual attendance.
Daily Equivalent Contribution by the Parent: $300 ÷ 20 = $15/day (spread over all available days).
Subsidy Contribution Breakdown:
💵 Subsidy provides $300/month, also fixed, irrespective of attendance.
Daily Equivalent Contribution by the Subsidy: $300 ÷ 20 = $15/day (spread over all available days).
Combined Monthly Contribution:
$300 (parent) + $300 (subsidy) = $600/month
Plan’s Total Cost:
$32/day × 20 days = $640/month
Deficit:
$640 (plan cost) - $600 (total contributions) = $40 deficit
🌟 Key Points
Predictable Contributions: Parent and subsidy contributions are fixed and remain consistent throughout the month.
Irrelevance of Plan Rate: Fixed contributions are not influenced by the plan’s actual cost, providing financial stability.
Flexibility for Attendance: While attendance may vary, the fixed contributions simplify billing and ensure transparency.
🛠️ Approaches to Handling the Deficit
1️⃣ 📋 Add the Deficit to the Parent’s Account:
The remaining $40 balance can be charged to the parent’s account as an additional amount to be settled.
This ensures the full cost of the plan is covered and keeps the parent informed of their responsibility.
2️⃣ 💵 Apply Additional Subsidy (If Allowed):
Request additional funding from the subsidy provider to cover the shortfall.
This option depends on the agreement with the subsidy entity.
3️⃣ ⚖️ Split the Deficit Between Parent and Subsidy:
Divide the $40 deficit proportionally based on existing contributions.
For example, if contributions are split evenly (50%-50%), both the parent and subsidy would cover $20 each.
4️⃣ 🚫 Limit Services:
Adjust or limit the services to fit within the $600 total contributions.
This ensures no outstanding balance while aligning services with the budget.
5️⃣ 🔍 Review the Plan Structure:
Reassess the plan’s rates to better align with the fixed contributions from both the parent and subsidy.
Restructuring rates may prevent recurring deficits.
🌟 Best Practices
✅ Transparency: Clearly communicate the deficit to both the parent and subsidy entity, providing a detailed explanation of how it will be managed.
📊 Regular Monitoring: Review contributions and attendance frequently to minimize deficits.
🤝 Collaboration: Work with both the parent and subsidy provider to identify sustainable solutions for managing shortfalls.
Note: Configuring Subsidy Methods Based on Operating Days
📅 Available Days: The days available for configuring subsidy methods depend on your center's operating days setup.
🖼️ Example: In the image below, Sunday and Saturday are grayed out, indicating that these are non-working days and cannot be selected for subsidy configuration.
🌟 Key Points
⚙️ Customizable Setup: Subsidy methods can only be applied to days when the center is operational, ensuring accurate and relevant billing.
📊 Transparent Configuration: Non-working days are automatically excluded from subsidy eligibility, simplifying the setup process.
✅ Error Prevention: Grayed-out non-working days help avoid accidental misconfiguration.
🌟 Important Note on Weekly and Monthly Fixed Subsidy Rates (Both Subsidy and Parent Amount)
While weekly and monthly rates are typically fixed—meaning the individual attended days within the week or month are irrelevant—they still require applicable days to be defined for specific scenarios:
📌 Key Scenarios for Subsidy Calculation
1️⃣ Plan’s Calculation Method Set to "Actual"
📊 How It Works:
Both weekly and monthly fixed contribution rates are converted into daily rates to match the actual number of attended days.
The total service cost is determined by summing the daily chargeable rates based on actual attendance.
✅ Why This Matters:
Ensures that parents and funding entities are charged fairly and accurately based on the days attended rather than a fixed lump sum.
Provides transparency and flexibility by adjusting costs dynamically according to real attendance data.
This method helps maintain fair contribution distribution, preventing overcharges or undercharges while ensuring billing aligns with actual usage
2️⃣ Plan’s Calculation Method Set to "Monthly" but Subsidy is Calculated on "Actual Rate" (For Weekly Configuration Rate)
📊 How It Works:
Even though the plan is calculated on a monthly basis, the weekly subsidy set to "Actual Rate" is first converted into a daily rate to determine the precise service cost for the month.
The weekly subsidy or parent contribution is divided according to the attended days, rather than applying a fixed weekly rate.
✅ Why This Matters:
Ensures that parents and funding entities are only charged for attended days, making billing more accurate and transparent.
Helps prevent overcharges or incorrect subsidy calculations, especially when attendance varies from week to week.
Provides a fair cost allocation, ensuring that subsidies and contributions align accurately with real usage rather than fixed estimations.
📌 Bottom Line:
This approach maintains billing precision, ensuring that families are charged correctly and subsidies are applied fairly based on actual attendance, not just fixed timeframes. 💡✅
🌟 Why This Matters
⚖️ Fair Billing: Enables precise cost allocation by ensuring contributions align with actual attendance.
📊 Transparent Calculations: Clearly separates fixed contributions from daily adjustments, maintaining clarity for both the parent and subsidy entity.
✅ Flexibility: Accommodates plans with varying attendance patterns while maintaining consistency in billing.
🔎 Deepen Your Understanding!
Want to master the concept of calculating actual services for daily and weekly rates within a monthly fixed plan? 📊💡
✅ Learn how to apply these calculations effectively.
✅ Understand how to ensure billing accuracy and fair cost distribution.
👉 Jump to the next section [Actual Subsidy Calculation on Monthly Plans] for a detailed breakdown on how it all works! 🚀
📊 Actual Subsidy Calculation on Monthly Plans
📅 When the plan's main calculation method is set to "Monthly", the Actual Calculation checkbox becomes available for configuring both daily and weekly fixed subsidies.
⚙️ Feature: This option enables the system to calculate the subsidy based on actual attendance or usage, rather than a fixed monthly amount.
🌟 Key Implication
📅 Dynamic Adjustment:
If a child attends fewer days than the plan covers (e.g., 20 operating days in April):
💵 Subsidy Adjustment: The subsidy is recalculated to match only the days attended.
⚖️ Fair Billing: Ensures contributions align with the services actually consumed.
🛠️ Why This Matters
✅ Accurate Billing: Reflects attendance-based costs, ensuring fairness.
📊 Transparent Contributions: Provides clarity for both parents and subsidy providers.
⚖️ Fair Allocation: Prevents overpayment or underpayment based on usage.
Example Scenario: Actual Subsidy Calculation on Monthly Plans
Without Actual Calculation
📋 Plan Details:
Monthly Plan: $500/month
👩👦 Parent Pays: $100/week ($400/month), regardless of attendance.
💵 Subsidy Pays: Covers the remaining balance of the plan ($100/month), regardless of attendance.
📊 Key Insight:
The parent contribution remains fixed at $400/month, and the subsidy adjusts to cover the rest of the plan's cost, irrespective of attendance.
With Actual Calculation
📋 Plan Details:
Monthly Plan: $500/month
👩👦 Parent Pays: $100/week ($400/month) (converted to daily rate based on 20 operating days).
💵 Subsidy Contribution: Covers the remaining balance of the plan’s total cost.
📅 Calculation Basis: Contributions are adjusted to actual attendance, as "Actual Calculation" is enabled.
🧮 Scenario
If the child attends 15 days out of 20 operating days:
1️⃣ Daily Equivalent Contribution (Parent):
👩👦 Parent Daily Rate: $400 ÷ 20 = $20/day
👩👦 Parent Pays: $20 × 15 = $300
2️⃣ Subsidy Contribution:
💵 Subsidy Covers the Remaining Plan Cost:
Total Monthly Plan Cost: $500
👩👦 Parent Pays: $300
💵 Subsidy Covers: $500 - $300 = $200
🌟 Key Points
📊 Attendance-Based Parent Contribution: The parent’s monthly amount is converted to a daily rate and adjusted for actual days attended.
⚖️ Subsidy Covers the Balance: The subsidy adjusts to cover the remaining balance of the plan’s cost after the parent’s contribution.
💵 Fair and Transparent: Aligns contributions with actual attendance, ensuring fairness in cost-sharing.
Important Note
📌 Actual Attendance Billing for Monthly Plans
Under a monthly plan, only the designated party—either the parent or the subsidy—benefits from paying based on actual attendance when the plan uses the "Parent amount" rate with an actual calculation method.
👩👦 Parent Contribution:
If the "Parent amount" rate is set, the parent only pays for the days the child attends.
💡 The subsidy is responsible for covering the remaining cost of the original monthly plan.
🌟 Why This Matters
✅ Fair Cost Allocation: Ensures parents or subsidy only pay for the services used, making billing more flexible and fair.
📊 Accurate Subsidy Support: Adjusts the subsidy’s share dynamically to account for the difference between the original plan cost and actual attendance.
⚖️ Balanced Responsibility: Clearly divides financial responsibility between parents and subsidies based on attendance.
❗ Applying and Understanding Exceptional Subsidy Rule
The Exceptional Subsidy Rule allows you to configure specific items or services to be excluded from subsidies or to assign them a unique subsidy calculation method. This provides greater flexibility for handling special cases where standard subsidy rules may not apply.
✨ How It Works
1️⃣ Exclude Certain Items:
Mark specific services or products (e.g., extracurricular activities or meal plans) as excluded from subsidies, ensuring they are fully paid by the parent.
2️⃣ Define Unique Subsidy Calculations:
Assign special subsidy rules (e.g., a different percentage or fixed amount) to specific items or services, ensuring tailored support for unique situations.
3️⃣ Toggle "Applied Exception Rule":
While adding a subsidy to a child’s profile, you can enable or disable the "Applied Exception Rule" to decide if the exception applies to that particular child.
Case-by-Case Control: Ensures that exceptions are not automatically applied to all plans but are adjusted according to individual needs and agreements.
💡 Example Scenarios
Excluded Services:
Mark extracurricular activities or meal plans as non-subsidized, ensuring parents cover their full cost.
Unique Calculation Method:
Assign a different hourly, percentage subsidy (e.g., 20% instead of the usual 40%) or a fixed subsidy amount (e.g., $50) for specific services like art classes or transportation.
🌟 Why This Matters
✅ Greater Flexibility: Tailors subsidy applications to the specific policies and needs of your center.
📊 Transparent Billing: Ensures parents understand which items are subsidized and which are excluded or have special rules.
⚖️ Controlled Application: Allows for precise management of subsidies on a per-child basis, ensuring fair and accurate financial arrangements.
📖 For detailed step-by-step instructions on setting up an exceptional rule, refer to the article: Enable and Manage Funding/Subsidy.
📋 Reading Funding Charges Calculation Summary
After completing the subsidy configuration, a summary will appear on the right side of the screen. This summary provides a detailed breakdown of:
✅ Products and services included in the schedule.
💵 Subsidy amounts applied to each item (if applicable).
📊 Total monthly or weekly charges expected from the funding entity.
🛠️ Key Option: Display as Description in Invoice
Within the summary, you’ll see an option labeled "Display as a description in the funding invoice."
📄 Purpose: This allows you to include the detailed breakdown of products and services in the invoice sent to the funding entity.
🌟 Why This Matters:
✅ Clarity: Provides full transparency for the funding entity on what charges are being covered.
📊 Comprehensive Billing: Ensures all parties understand the allocation of subsidy contributions.
🌟 Why This Matters
✅ Transparent Communication: Offers a clear view of how subsidies are applied and calculated.
📊 Streamlined Invoicing: Simplifies billing for the funding entity while providing a professional and organized presentation.
⚖️ Accurate Records: Ensures precise tracking of products and services included in the subsidy schedule.
Subsidy and Discount order of calculation
⚙️ Configuring the Order of Subsidy and Discount Calculations
You can decide whether subsidies should be applied before or after product discounts, ensuring your billing aligns with your center’s policies.
🛠️ Steps to Configure the Order of Calculation
1️⃣ Navigate to Product Management:
Go to Options > Product Management from the main menu.
2️⃣ Access Discounts Settings:
Click Discounts in the top-right corner of the screen.
3️⃣ Toggle "Apply Subsidies Before Discounts":
Enable the toggle if you want subsidies to be applied before discounts.
Leave it disabled if you prefer discounts to be applied before subsidies.
Example 1: Apply Subsidies Before Discounts
📋 Plan Details:
Total Cost: $100
Subsidy: $30
Discount: 10%
🧮 Calculation:
1️⃣ Subsidy Applied First:
Total Cost - Subsidy = $100 - $30 = $70
2️⃣ Discount Applied Next:$70 × 10% = $7 discount
3️⃣ Final Cost:$70 - $7 = $63
📊 Outcome: The subsidy reduces the initial total, and the discount applies to the reduced amount, lowering the parent’s final cost.
Example 2: Apply Discounts Before Subsidies
📋 Plan Details:
Total Cost: $100
Subsidy: $30
Discount: 10%
🧮 Calculation:
1️⃣ Discount Applied First:
$100 × 10% = $10 discount
Total Cost - Discount = $100 - $10 = $90
2️⃣ Subsidy Applied Next:$90 - $30 = $60
📊 Outcome: The discount reduces the initial total, and the subsidy applies to the discounted amount, leaving a higher final cost for the parent.
🌟 Why This Matters
✅ Greater Flexibility: Allows customization of billing workflows to suit your policies.
📊 Transparent Billing: Ensures parents and funding entities understand how subsidies and discounts are calculated.
⚖️ Fair Cost Allocation: Determines whether discounts or subsidies are prioritized, impacting the final parent and subsidy contributions.
📋 Managing Multiple Subsidies for a Single Payer in a Child’s Plan
The same payer assigned to a child’s plan may qualify for multiple subsidies, each with specific terms. However, certain combinations of subsidies may create conflicts, particularly when one is based on a fixed "Parent Amount."
❗ Important Restriction
You cannot assign multiple subsidies to the same payer under the same plan if one of them is a fixed "Parent Amount" subsidy. This is because:
The Parent Amount subsidy defines the parent’s final payment, leaving no room for recalculations that other subsidies (fixed, hourly, or percentage-based) require.
Applying additional subsidies alongside a Parent Amount subsidy would create conflicts, as it would alter the parent's fixed payment.
💡 Example Scenario
📋 Plan Details:
Total Fee: $300
💵 Fixed Subsidy: $50
📊 Percentage Subsidy: 10% ($30)
👩👦 Fixed Parent Amount Subsidy: $200
🧮 Calculation
1️⃣ Without Fixed Parent Amount Subsidy:
💵 Fixed Subsidy: $50
📊 Percentage Subsidy: 10% of $300 = $30
Remaining Parent Cost: $300 - ($50 + $30) = $220
2️⃣ With Fixed Parent Amount Subsidy:
👩👦 Parent Pays: $200 (fixed amount)
💵 Fixed Subsidy and 📊 Percentage Subsidy: Ignored, as the fixed parent amount overrides all other calculations.
🌟 Key Points for Setting Up Multiple Subsidy Amounts
To ensure accurate and conflict-free billing, follow these key considerations when managing multiple subsidies for the same payer in a child’s plan:
1️⃣ Subsidy Types Compatibility
Avoid Overriding Subsidies:
Refrain from using a fixed "Parent Amount" or "Both Amount" fixed subsidy when applying multiple subsidies, as these override all other calculations, leaving no room for additional subsidies to be factored in.
2️⃣ Distinct Time Periods or Applicability
Assign Subsidies to Different Periods or Days:
While it’s possible to apply multiple subsidies to the same period or days, for clarity and to prevent redundant calculations, it’s recommended to assign them to different periods or days.
💡 Examples of Clear Subsidy Assignments
Example 1: Day-Specific Subsidies with Total Cost
Scenario:
A child attends daycare 5 days a week (Monday to Friday), and multiple subsidies are applied based on the specific days attended.
💵 Subsidy 1: Covers Monday and Tuesday
Rate: $10/day
Total Subsidy: $10 × 2 days = $20/week
💵 Subsidy 2: Applies to Thursday
Rate: $15/day
Total Subsidy: $15 × 1 day = $15/week
💵 Subsidy 3: Designated for Wednesday and Friday
Rate: $12/day
Total Subsidy: $12 × 2 days = $24/week
🧮 Weekly Breakdown
Plan Daily Rate: $50/day
📊 Total Weekly Cost:
$50 × 5 days = $250/week
💵 Total Subsidy:
$20 (Monday/Tuesday) + $15 (Thursday) + $24 (Wednesday/Friday) = $59/week
👩👦 Parent Pays:
$250 (total cost) - $59 (subsidy) = $191/week
Example 2: Weekdays vs. Weekends with Total Cost
Scenario:
A child attends daycare 7 days a week, with different subsidies assigned for weekdays and weekends.
💵 Subsidy 1: Assigned for weekdays (Monday to Friday)
Rate: $8/day
Total Subsidy: $8 × 5 days = $40/week
💵 Subsidy 2: Designated for weekends (Saturday and Sunday)
Rate: $20/day
Total Subsidy: $20 × 2 days = $40/week
🧮 Weekly Breakdown
Plan Daily Rate: $50/day
📊 Total Weekly Cost:
$50 × 7 days = $350/week
💵 Total Subsidy:
$40 (weekdays) + $40 (weekends) = $80/week
👩👦 Parent Pays:
$350 (total cost) - $80 (subsidy) = $270/week
Example 3: Multiple Subsidies Applied to the Same Days Without Conflict
Scenario:
A child attends daycare 5 days a week (Monday to Friday). Two subsidies are applied to the same days, but each subsidy covers different portions of the cost, avoiding conflicts.
📋 Plan Details:
Total Daily Cost: $50/day
💵 Subsidy 1: Covers 50% of the daily cost.
💵 Subsidy 2: Provides an additional fixed amount of $10/day.
🧮 Calculation
1️⃣ Daily Subsidies:
Subsidy 1: 50% of $50 = $25/day
Subsidy 2: Fixed amount = $10/day
Total Subsidy per Day: $25 (Subsidy 1) + $10 (Subsidy 2) = $35/day
2️⃣ Parent Contribution:
Total Daily Cost - Total Subsidy = $50 - $35 = $15/day
Weekly Breakdown
Total Weekly Cost: $50 × 5 days = $250/week
💵 Total Weekly Subsidy:
Subsidy 1: $25 × 5 = $125/week
Subsidy 2: $10 × 5 = $50/week
Combined Subsidy: $125 + $50 = $175/week
👩👦 Parent Pays:
$250 (total cost) - $175 (subsidy) = $75/week
🌟 Why This Works
✅ No Conflicts: Each subsidy covers a distinct portion of the cost, avoiding overlap or recalculation.
📊 Transparent Contributions: Parents and subsidies can clearly see their respective responsibilities.
⚖️ Balanced Distribution: Ensures fair application of multiple subsidies without overriding the parent’s share.
Example 4: Multiple Subsidies Applied to the Same Days with Conflict or Overcalculation
Scenario:
A child attends daycare 5 days a week (Monday to Friday). Two subsidies are applied to the same days, but both subsidies attempt to cover overlapping portions of the same cost, resulting in a conflict or overcalculation.
📋 Plan Details:
Total Daily Cost: $50/day
💵 Subsidy 1: Covers 50% of the daily cost.
💵 Subsidy 2: Provides a fixed amount of $30/day, regardless of other subsidies.
🧮 Calculation with Overcalculation
1️⃣ Daily Subsidies:
Subsidy 1: 50% of $50 = $25/day
Subsidy 2: Fixed amount = $30/day
Total Subsidy Attempted: $25 (Subsidy 1) + $30 (Subsidy 2) = $55/day
2️⃣ Conflict:
The total subsidy ($55/day) exceeds the total daily cost ($50/day), creating an overcalculation of $5/day.
Weekly Breakdown with Conflict
Total Weekly Cost: $50 × 5 days = $250/week
💵 Total Weekly Subsidy Attempted:
Subsidy 1: $25 × 5 = $125/week
Subsidy 2: $30 × 5 = $150/week
Combined Subsidy: $125 + $150 = $275/week
Conflict Amount: $275 (total subsidy) - $250 (total cost) = $25 excess subsidy/week
🛠️ How Conflict is Handled
⚠️ Discard Excess Subsidy: The extra $5/day ($25/week) must be manually excluded to reconcile the overcalculation.
📋 Adjust Subsidy 2: Limit the fixed subsidy to cover only the remaining balance after Subsidy 1 is applied ($25/day), ensuring no overcalculation.
🌟 Why This Happens
📊 Overlapping Coverage: Both subsidies attempt to cover overlapping portions of the same cost, resulting in a combined subsidy exceeding the total cost.
⚖️ Unbalanced Application: No mechanism ensures one subsidy takes precedence, leading to double coverage.
🛠️ Setting Up Multiple Subsidies for a Plan
To configure multiple subsidies for a child’s plan, follow these steps:
1️⃣ Enable Desired Subsidies:
From the list of available subsidies, select and enable the ones you wish to apply to the plan.
Configure their calculation methods (e.g., fixed amount, hourly, percentage) to ensure proper application.
2️⃣ Check for Activation Messages:
If you encounter the message "Schedule date doesn't match the subsidy start date", this indicates that the subsidy’s start date (configured in the Funding Management section of the Entities Calculation Rules tab) begins after the plan’s start date.
⚠️ What This Means
The subsidy has not yet been activated because its start date does not align with the plan's schedule.
Until the subsidy’s activation date is reached, the system will not apply the subsidy to the plan.
🛠️ How to Resolve the Issue
Adjust the Subsidy Start Date:
Go to Funding Management > Entities Calculation Rules tab.
Modify the subsidy’s start date to match or precede the plan’s start date.
Update the Plan Schedule:
Alternatively, adjust the plan’s start date to align with the subsidy’s start date.
🌟 Why This Matters
✅ Seamless Application: Ensures subsidies are activated and applied as expected without interruptions.
📊 Accurate Billing: Aligning dates prevents discrepancies in cost-sharing between parents and subsidies.
⚖️ Transparent Management: Avoids confusion about why subsidies may not appear on invoices or calculations.
Where to Find Subsidy Charges
1️⃣ Upcoming Invoices:
📄 Invoices to the Payer:
All upcoming invoices issued to the payer will automatically include the subsidy amounts for the defined billing period.
These invoices reflect both the subsidy contribution and the parent’s payment responsibility, ensuring clarity for both parties.
2️⃣ Funding Management Section:
📊 Track Transactions:
The system records subsidy transaction charges separately under the Funding Management section for easy tracking.
🛠️ Where to Access:
Go to Options > Funding Management on the app to view detailed records of subsidy-related charges.
🌟 Why This Matters
✅ Improved Transparency: Provides a clear breakdown of subsidy contributions alongside parent charges for each invoice.
📊 Simplified Tracking: Centralized records in the Funding Management section ensure subsidy transactions are easily accessible for reporting and auditing.
⚖️ Enhanced Financial Management: Separating subsidy charges simplifies reconciliation and ensures compliance with funding agreements.
🎉 Wrapping It Up: Simplify Subsidy Management Like a Pro!
You’re now equipped with everything you need to master subsidy application—from setting up subsidies and resolving conflicts to customizing calculations and tracking charges. With these tools and strategies in hand, you’ll breeze through managing funding with clarity, efficiency, and confidence! 💼✨
📄 Additional Resources
For further details and step-by-step instructions on managing and tracking subsidy charges, refer to the article: Enable and Manage Funding/Subsidy..