This article explains how to handle agency overpayments for subsidized families.

Overview

You may handle an agency overpayment several different ways depending on what you would like to do. Choose one of the following methods:

  1. Charge the Agency: Post an additional fee and apply the overpayment to that fee. The fee shows as a charge (blue line) on the agency ledger.
  2. Make an Adjustment: One step option to balance the agency ledger card. The adjustment shows as a negative credit (yellow line) on the agency ledger.
  3. Credit the Family: Use an adjustment to transfer the overpay amount to the family as a credit to their account.
    Note: You may need to create an  Adjustment Code first, like “Agcy Overpay”. If you choose option “c” above, mark it as a Transfer code and name it something like “Tfr Agcy Overpay”.

Option A: Charge the Agency

  1. Go to the Agency Ledger for the appropriate family (start at the Family Ledger then click the drop down list (upper right) and select the Agency Ledger).
  2. Post an extra charge to the agency with a Description like “Agency Overpay Revenue”.
    Hint: You may need to Create this Charge Description first.
    agency-extra-revenue-charge
  3. Next, go to the Agency Payment Posting screen and record the payment on two lines. One to pay the original amount charged and a second to pay the additional charge.
    agency-extra-revenue-payment

Option B: Agency Adjustment

  1. Use Agency Payment Posting. For the line item that was over paid enter the full amount of the payment in the Payment column.
  2. In the Adjustment column, enter a negative amount for the portion that was over paid. Use the new adjustment code you created above.
    Hint: Choose the Adjust Code first, and the Adjustment amount will be filled in automatically, including the negative.agency-overpayment-credit

Option C: Credit the Family

  1. Use Agency Payment Posting to transfer the overpayment as a credit (negative charge) to the family. Using an Adjust Code as a transfer not only balances the agency ledger but also reduces the amount due on the  family ledger, passing on the credit for the overpayment to the family.
  2. For the line item that was over paid enter the full amount of the payment in the Payment column.
  3. In the Adjustment column, enter a negative amount for the portion that was over paid. Use the new “transfer” Adjust Code you previously created.
    Hint: Choose the Adjust Code first, and the Adjustment amount will be filled in automatically, including the negative.transfer-agency-overpmt
    The Family Ledger then shows a negative charge, which acts as a credit to their account.overpmt-private-credit
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