Thread: MMK - State Pay
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Old 04-21-2014, 02:11 PM
MarinaVanessa's Avatar
MarinaVanessa MarinaVanessa is offline
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Join Date: Jan 2010
Location: Ventura County, CA
Posts: 7,200

Okay so this is how I prefer to mark these in MMK.

Our local subsidy program only cuts a check for each month so they take my weekly rate, divide it into a daily rate and then will pay for each day in that month that the child was in attendance. Usually the check for the current month arrives 2 months later at the beginning of the month (if I had a subsidy client I would receive payment for April at the beginning of June).

I create a weekly invoice from Mon-Fri just like my regular private pay clients so I will have several unpaid invoices for that family.

Then once I get my check I go in to each invoice and give each one a discount/credit until I use up all of the money from the subsidy check, leaving those invoices with $0 to be paid but without it actually being paid. I title the credit something like this "Name of Program $ amount Check #1234 - April 2014" Then I go to the "Other Income" section and enter in the name of the client, amount of the check and what month it was for in the description "Susan Jones $726 Check #1234 Name of Program".

Invoice #1: 3/31-4/4 $165
Invoice #2: 4/7-4/11 $165
Invoice #3: 4/14-4/18 $165
Invoice #4: 4/21-4/25 $165
Invoice #5: 4/28-5/2 $165
Balance: $825

I receive the check in June which covers April but they only cover payment for days in April (not the last day in March or the 2 days in May):
Weekdays in April = 22 Weekly rate $165/5 days= $33
22 days x $33 = $726 check amount

Invoice #1: 3/31-4/4 $165 $165 discount, invoice balance $0. Check balance $561
Invoice #2: 4/7-4/11 $165 $165 discount, invoice balance $0. Check balance $396
Invoice #3: 4/14-4/18 $165 $165 discount, invoice balance $0. Check balance $231
Invoice #4: 4/21-4/25 $165 $165 discount, invoice balance $0. Check balance $66
Invoice #5: 4/28-5/2 $165 $66 discount, invoice balance $99. Check balance $0
Balance Owed: $99

Other Income: Susan Jones $726 Check #1234 Name of Program $726

Let's assume that the last day in March was paid in a previous check so let's deduct the $33 from the balance (in reality MMK should have a credit which it automatically applies when the invoice is created) so instead of $99 the balance should really be $66 which would be owed because these are the first 2 days in March and will be covered in the following month's check.

It sounds complicated but food program and subsidy money should really be considered "Other income" which is why I do it this way. This way my invoicing is the same as all of the other clients and it doesn't record as double payment.

If the check for the month is ever short due to absences because they already used up all of their absence days (our program gives up to 10 days I think) or just because the rate that they pay changes then it still shows up as owed in the client's invoice and I charge the client this amount.
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