Some childcare centers in Texas receive a specific type of subsidy payment from the state to help offset the cost of care for eligible families. This subsidy amount is calculated based on the number of calendar days the child is scheduled for care each month. This means the subsidy amount can vary month-to-month.

Previously, calculating these complex subsidies was tedious and error-prone. But our new variable monthly subsidies feature automates the entire process!

As the center admin, you can now configure variable monthly subsidy plans in Billing → Configuration → Plans and Items.

1. Enable the "Variable Monthly Subsidies" customization.

2. When creating monthly plans, a new "Charged daily by schedule, invoiced monthly" frequency will appear.

3. Enter the daily subsidy amount instead of monthly amount.

4. The system will automatically calculate the monthly subsidy based on the child's schedule.

5. The subsidy will be shown as a separate line item on invoices, with the accurate monthly amount.

6. Behind the scenes, the system will allocate the subsidy across the child's scheduled days for proper accounting.

When you apply a variable monthly subsidy plan to a child, the subsidy is automatically calculated each month by counting the number of days the child is scheduled to receive care and then backing out the family's copay for that child. The resulting daily rate becomes the calculated "Daily Subsidy Amount" on the child plan.

The subsidy amount will update in real-time if the copay changes. (The amount is an estimate that will vary slightly month-to-month based on actual calendar days.)

Variable monthly subsidies are fully supported in billing reports like Upcoming Invoices. You'll see accurate monthly subsidy amounts reflective of each child's schedule.

We hope this feature saves you time and gives you confidence your accounting is handled correctly. Please contact us if you have any questions!