If your center accepts subsidy programs, you surely know that payments rarely go exactly as planned. This guide will show you what to do if a subsidy program overpays for a child. This guide will show you how to receive that payment for use by the subsidy or use by the parent.

To jump ahead to the proper section, you can answer this question. A subsidy has paid more than they currently owe. Which user gets to use the extra amount?

If the overpayment by the subsidy is only reserved for use by the subsidy program, follow these steps

1. Go to the parent's profile and select "Add Credit Memo"

2. Under "Type" select "Prepaid [Payer Name]". In this case, our payer is named "State Subsidy", however, yours will likely have a more specific name. Next, enter the amount of the overpayment in the "Amount" field. Click "Save." For this example, the State Subsidy sent Mariposa-Indy $300 in advance.

3. The credit memo is now showing on the parent's profile on their "Billing" tab.

4. The next time an invoice is issued, if there is a portion of the invoice that is dedicated to be paid by the subsidy, the credit memo will automatically apply to the subsidy balance on the next invoice. Please note, this amount can only be used by the subsidy moving forward. Until the subsidy has a balance, this credit memo will remain on the parent's account.

If the overpayment by the subsidy is only reserved for use by the parent, follow these steps

1. Go to the parent's profile and select "Add Credit Memo"

2. Within the "Type" drop-down, select "Excess/Overpayment [Payer]". Again, in this example, our third-party payer is called "State Subsidy". Enter in the amount of the overpayment and any notes before tapping "Save".

3. The credit memo is now showing on the parent's profile on their "Billing" tab.

4. The next time an invoice is issued, this balance can be used for the parent balance. If the subsidy has a balance, this credit memo will not apply but can only be used by the parent. This is helpful for back payments by the subsidy agency for balances and other situations where the subsidy has paid more than expected but that overage can be used by the parent.

Notes:

If the family has an open invoice when you add a credit memo, the credit memo will automatically apply to the open applicable balance on the oldest open invoice.

If the credit memo is applied first and then an invoice is issued, the credit memo will apply to the open applicable balance the following day.

To learn how to apply a credit memo click here. If you need to learn how to reallocate a subsidy payment please click here.

If you have any questions please contact support@lineleader.com.