Subtract Funding Amount from Invoice
When using the subtract funding amount from invoice as your funding type the system will deduct the amount allocated for funding, rather than the hours.
Next, with subtract funding you are able to select your funding calculation as actuals or averages.
How is Subtract funding amount from the invoice calculated?
If actual is selected as your funding calculation you will follow the method below.
Total funded hours divided by total days in funding period = funded hours per day.
Funded hours per day x days in the invoice period = total funded hours.
Total funded hours x funded hourly rate = funded amount invoiced.
If average is selected as your funding calculation you will follow the method below.
Total hours divided by months within the funding period = total funded hours.
Total funded hours x funding hourly rate = funded amount invoiced.
Please note: If the average funding calculation has been applied the months need to be full months. For example, 01/04/2020 to 31/04/2020.
Top tip: The session hourly rate needs to be more than the funded hourly rate for the cost to calculate as expected. If it does not we have to reverse the formula to understand the calculation. For example:
Funding hourly rate - session hourly rate = Difference between the hourly rate.
Difference between the hourly rate x hours invoiced = difference between expected amount subtracted & the amount subtracted.
This video will teach you more about subtracting funding: