Originally Posted by Blackcat31:
Personally I wouldnt record what the parent pays you in the MMK. Go ahead and give receipts for it but if you write reimburement on the receipt I would think you are fine. Only enter what the state pays you in the MMK stuff.
Unless the parent has to pay you more than the state pays...which in that case ONLY record what the difference is.
This is one way of doing it. I do it a little different.
I use MMK and I invoice all of my clients even if they are subsidy clients (I only have 1 at the moment). When I get my subsidy check for them I edit their invoice to show a "discount" in the same amount of my subsidy check which should zero the invoice out. I just make sure to specify that the reason why I'm giving the discount is because of the subsidy check that I received. This way if my subsidy check was short then the invoice still shows a balance that the parent now has to pay. Then I claim the subsidy check amount as "other income" and specify that it was a subsidy payment for whichever client for whichever month it was for.