What is The Purpose
This user guide covers the steps in 1Core in the setup, billing and payment related to subsidy agencies (in 1Core it is called 3rd Party Agency). 1Core maintains a separate Agency Ledger to track all the agency related billing and payments.
3rd Party (Subsidy) Agency Setup
If your center accept 3rd party subsidized agency payments, the first step is to setup the 3rd party agency in 1Core.
Center Dashboard --> Setup --> Other àAdd/Edit 3rd Party Agency
When a 3rd party agency record is created, the system automatically creates a ledger for the agency.
Flag a Family as Subsidized Family
In order for the subsidized function to work, the next step is to flag all subsidized families. To do that you need to go to the Family record and check "Subsidized" check box in the Family Type field within the Family Info section of the family record as shown below:
Setup up Recurring Billing to 3rd Party Agency
Once you have flagged a family as subsidized family, when you go to the Child Billing section within the child record, you are able to setup billing items for the 3rd party agency. Note: If "Subsidized" family type is not checked, the agency ledger is NOT available to be selected in the Ledger Type.
There are two methods to setup recurring billing for subsidized families:
Say the child tuition is $300 per month. The 3rd party agency has indicated that it will pay $216 and the parent has a $84 co-pay.
(a) Parent Co-Pay Net Amount Method
In this method you would setup 2 billing items in the Program and Billing section of the child record. The first billing item is to bill the 3rd party agency ledger for $216. The second billing item is to bill the Sponsor (parent) ledger for the $84 parent co-pay as show below:
In the parent co-pay method, the parent ledger is less cluttered and it is the more straight forward. However, the subsidized parents do not see the full tuition amount on their account statement.
(b) Subsidy Offset Method
In this method you would setup 3 billing items in the child billing section of the child record. First is to bill the 3rd party agency ledger for the total subsidy amount. Next you setup 2 billing items in the Sponsor ledger. The first sponsor billing item is the parent full tuition. Then the 2rd associated billing item is a "subsidy offset" which is equal to the subsidy amount. This net of 2nd and 3rd billing item in the Sponsor ledger is equal to what the parent owes as the parent co-pay.
In the Subsidy Offset method, the subsidized parents do see their full tuition in their account ledger and statement.
Note: Depending on the method you choose, you would need to setup a tuition charge billing item called "Parent Co-pay" or a credit billing item called "Subsidy Offset" under Billing Item Setup.
In either method, when the automatic recurring runs, the system automatically post the respective billing items to the parent and the agency ledger.