How do I manage HCP package overspend?

This information is for Australian Customers who provide HCP funded services.

Please always refer to the latest updates on the Department of Health website. Please confirm your organisation's eligibility when reviewing AlayaCare's Zendesk articles prior to making any updates to the configuration in your Production environment.

If you require further assistance, please contact the AlayaCare Cloud Support Team.

In the instance where a care recipient has overspent their funds, the provider can choose to write off the overspend or, if the care recipient agrees, invoice them for the overspend amount. The overspend amount cannot be claimed in subsequent months from Services Australia.

1. Navigate to Client Profile > Accounting > Balance and Transactions.

Any package overspend will be displayed in the Care recipient overspent account bucket.

Writing Off the Overspend

Choosing to write off the overspend means the provider has elected to absorb the cost of the overspend and will not attempt to recover these funds from the care recipient. 

To clear the overspend click Reconcile.

1. In the resulting dialogue, select the posting date of the write-off transaction. This will determine which HCP Statement the transaction will appear on.

2. Select the account the write-off transaction should be posted to. Only accounts of type Expense will display in this drop-down.

3. Enter the amount being written off.

Click Reconcile.

After the overspend amount has been reconciled, an HCP Write Off transaction will be created for the amount entered. The Care recipient overspent account will decrease and the overall balance will increase.

                               

The HCP Write Off transaction will debit the expense account and credit the unearned revenue account.

Invoicing the Care Recipient for the Overspend

Choosing to invoice the care recipient for the overspend means the care recipient has agreed to pay for the additional expense incurred against their home care package. 

To clear the overspend, click Reconcile.

1. In the resulting dialogue, select the posting date for the resulting HCP Income Sale transaction. This will determine which HCP Statement the transaction will appear on.

2. Select the client individual funder that the overspend should be invoiced to.

3. Select the Fees & Charges Income code the HCP Income Sale transaction will be linked to.

4. Select the billing contact.

5. Enter the amount to be invoiced.

Click Reconcile.

After the overspend has been reconciled, an HCP Income Sale transaction will be created for the amount entered. The Care recipient overspend account will decrease and the overall balance will increase. 

A separate invoice will be created for providers to send to the care recipient for payment or, if a Tax Invoice/Statement is being issued, the HCP Income Sale will be included in this export. 

Combination Reconciliation

If the care recipient has agreed to only pay a portion of the overspend amount, you can split the reconciliation of the overspend between a write-off and invoicing the care recipient by simply entering an amount for each option.

After reconciling, separate transactions will be created for the different amounts, as described above.