Agency Overpayment

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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:

Make an Adjustment: Easy one step option to balance the agency ledger card.
Charge the Agency: Post an additional fee then apply the overpayment to that fee.
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: Agency Adjustment

Use Agency Payment Posting. For the line item that was over paid enter the full amount of the payment in the Payment column. In the Adjustment column, enter a negative amount for the portion that was over paid. Use the new adjustment code you created above.

Option B: Charge the Agency

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). Post an extra charge to the agency with a Description like "Agency Overpay Revenue". Hint: You may need to Create this Charge Description first.

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.

Option C: Credit the Family

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.

For the line item that was over paid enter the full amount of the payment in the Payment column. In the Adjustment column, enter a negative amount for the portion that was over paid. Use the new "transfer" Adjust Code you previously created.