Setting up annualised billing with stretched funding
If you offer annualised billing where by parents pay a fixed monthly amount that is averaged over a 12 month period, please follow the steps below to setup your funding.
Setting up your funding group
Stretch funding requires terms that start on the 1st January and ends on the 31st December in the current year, with no gaps in between. For example:
Spring 24
01/01/2024 to 31/03/2024
Summer 24
01/04/2024 to 31/08/2024
Autumn 24
01/09/2024 to 31/12/2024
Configuring stretched funding per child
1. Assign your stretched funding group to a child within Children > Accounts > Discounts > Funding section and click Save:
Here you can also restrict the 'Maximum amount per week' of funded hours that can be booked for the child.
You can also override the hourly rate setup within the funding group on a per child basis by entering an hourly rate within the 'Override Funded Hourly Rate'.
2. Choose Standing Order invoice type with Children > Accounts > Charges page. Click Save.
Booking your funding
3. Annualised billing requires funded and non funded sessions to be booked from the 1st of the month (regardless of which day the 1st falls on) within the 'Start W/C' calendar.
Unlike other invoicing types, funded sessions booked for a Standing Order invoice type must be booked within the start and end time of a regular session.
Please note: if sessions are not booked from the 1st of the month, the first month will be calculated as Calendar Monthly invoice type.
Annualised billing calculation
To calculation an average monthly bill for a child on Standing Order invoice type, the system will automatically add the first full week of regular session costs together, taking any overlapped funding (rates) into account, to work out the 'Total weekly cost'. The total weekly cost is then multiple by the number of weeks your setting is open, and divided by 12 to give the average monthly cost each month.
Any extra sessions booked will not be averaged over 12 months. The full cost will be added to the Standing Order invoice for the corresponding month.
Example Standing Order invoice
Jake has the following sessions booked from the 1st March 2024:
Day | Start Time | End Time | Session Type | Total hours per week | Cost per hour |
| Mon, Tue, Wed, Thu | 09:00 | 17:00 | Regular | 32 | £12 |
Mon, Tue, Wed | 09:00 | 12:00 | Funded | 9 | £12 |
Fri (15/03/24) | 12:00 | 16:00 | Extra | 4 | £15 |
Regular sessions total weekly cost = £384
Funded sessions total weekly cost = £108
Extra session cost = £60
Nursery open 51 weeks of the year (within Finance > Configuration in Abacus).
Average monthly calculation = (Regular sessions total weekly cost - Funded sessions total weekly cost) * 51 / 12 + Extra session cost
Total invoice cost = £1188 (£384 - £108) * 51 / 12 + £15
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