Understanding billing types

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When generating billing schedules in Found, the billing type determines how charges are calculated in relation to the defined billing period. Found supports three billing schedule types:

• Advance
• Arrears
• Mid-period

Each type is automatically determined based on the relationship between the Schedule Start Date and the Billing Period.

Billing schedule type definitions

Advance

Definition: The billing schedule is classified as Advance if the Schedule Start Date is on or before the Billing Period Start Date.

Example: 

• Schedule start date: 1st July
• Billing period: 1st July – 31st July

This is an Advance billing schedule.

Use case: Advance billing is typically used when care fees are invoiced before or at the start of a billing period, such as issuing monthly invoices on the first of the month for the upcoming month’s care.

Arrears

Definition: The billing schedule is classified as Arrears if the Schedule Start Date is on or after the Billing Period End Date.

Example:

• Schedule start date: 1st August
• Billing period: 1st July – 31st July

This is an Arrears billing schedule.

Use case: Arrears billing is typically used when charges are applied after care has been delivered. This may be required by some local authorities or contract terms.

Mid-period

Definition: The billing schedule is classified as Mid-period if the Schedule Start Date falls after the Billing Period Start Date but before the Billing Period End Date.

Example:

• Schedule start date: 15th July
• Billing period: 1st July – 31st July

This is a Mid-period billing schedule.

Use case: Mid-period billing is used in cases where a resident’s care begins part-way through the billing period. This ensures only the relevant number of days are billed.