Calculating final invoice

[Rashi]

Hi there

I have been given notice today by one of my parents which is effective immediately and she has calculated what she believes to be the final payment amount which is working out over £200 less than my calculation.

Am I right in thinking that to work out final invoice once 4 week notice period has been given is to take the fixed monthly amount and multiply it by 12 and then divide by 52 to get weekly amount and then simply multiply that by 4???

We agreed a fixed monthly amount which included holiday care for her eldest daughter. The worst part about today is that she sent her husband round with the letter she had written. He told me a family member was going to be taking care of the children despite me seeing her advert on childcare.co.uk earlier today.

I don't mind being given notice but I cannot abide being lied to or being duped out of money due to me.

Can anyone help me plz so I can make sure that what I am saying is correct. A contract is in place and signed and clearly states a 4 week notice period is required and all payments are made in advance.

Thanks

Rashi
X

[tulip0803]

I would start at the beginning and do a statement of care provided with dates, times and costs, along with payments made. This way you can work out exactly what the parent has already used/paid for. With fixed payments she may be in credit or may owe you more money the only way to work it out is with a statement IYSWIM.

You would need to look at the contract hours then to get the 4 weeks payment that you would have expected to receive on the hours over the next 4 weeks and add to the statement to get a final figure.

Fixed cost monthly contracts are good that they help the parents and us budget but are complicated to work out final figures.

If you X monthly payment by 12 and divide by 52 may still mean it is incorrect as there is not exactly 52 x 7 days in a year and if you do not charge for your holiday weeks then you will need to take them off too. Only sure way is a statement that the parent can look at and see exactly what has been used and paid for already.

[Mouse]

I agree with Tulip.

Go back to the beginning of the contract. Work out how much fees would have been for each week or month. Add it all together to see how much should have been paid over the whole time the children have been with you. Then add up exactly how much they have actually paid. Take one from the other to see how much they owe you or you owe them.

[Chatterbox Childcare]

I would do this as above but don't forget to add in the notice period too..

[Rashi]

I understand what you are both saying, however, the monthly amount also included a 10% sibling discount.

I just want to keep the calculation as simple as possible. I have done a lot for these parents by helping them out with extra hours and also caring for their poorly kids so they could go to work.

Based on my advertised fees they should have been paying £975 per month and that figure didn't include holiday care for the eldest child. I agreed to a lower fixed payment to help them out as I knew things were tight. This has now backfired completely cos she thinks she can do her own calculation on what she owes me.

[Chatterbox Childcare]

What does your contract say?

[Rashi]

4 weeks notice must be given and payments must be a month in advance

[Chatterbox Childcare]

with regard to fees. Does it state that you will recalculate or just 4 weeks notice? Does your contract state a weekly fee or just a monthly fee? How did you calculate it all to get your monthly fee?

[Rashi]

It states just 4 weeks notice and the monthly figure was reached by taking the fee amounts for the 2 children and multiplying them by 52 and dividing by 12

[Chatterbox Childcare]

It won't make any difference if you work it out your way or the way suggested above then and you should get the same answer.

Personally I would go back to the start date as follows as an example

Sept 4 weeks
Oct 4 weeks
Nov 4 weeks
Dec 4 week
Notice 4 weeks

16 weeks @ £100 = £1600
Less paid £1200
Owes £400

[Rashi]

I am sorry if I sound thick but I don't understand.

They have paid me £956.25 on 2nd every month since September 2013 and notice period is effective from today and is 4 weeks but the notice period should be from 2nd January really

[Chatterbox Childcare]

not unless you have stated 1 month from the payment date

[Chatterbox Childcare]

Okay so payments are

Sept, Oct, Nov, Dec = £956.25 x 4 = £3825.00 - take off 18 weeks - add on 4 weeks notice

[Rashi]

Ok so I need to work out 4 weeks worth of fees and deduct 3 days that they have already paid?

[Rashi]

Sorry I am being thick again. What do you mean take off 18weeks?

[Chatterbox Childcare]

If that is what your contract states yes but the 3 days comes out of the 4 weeks notice.

[Chatterbox Childcare]

There has been 18 weeks between Sept and Dec

[Rashi]

I get it now....finally lol. It's been a long day. Thank you so much x

[Chatterbox Childcare]

Does it all make sense - if you want to pm me your weekly figure I will work it out so you have something to double check it against if you like

[Chatterbox Childcare]

I know the feeling - just do the calculation backwards from when you originally worked out the monthly figure.

On all my contracts I have a weekly and monthly fee and a clause that states "should this contract end before 31st August then fees may be recalculated based on time used and monies paid".

[Rashi]

I think I may add that into mine.

Can I remove the 10% discount from the 4 week notice period as the girls are no longer with me?

[bunyip]

I think I may add that into mine.

Can I remove the 10% discount from the 4 week notice period as the girls are no longer with me?

I'd say "no". Subject to contracted terms, you are entitled to be paid in lieu of working the notice, so you can't in fairness ask to be paid any more for not working than you would've been paid if the children had attended throughout the notice period.

There's rarely a simply solution to something that has been allowed to develop into a complex situation. I have to agree with the early contributors who've said you need to work out a statement of: "actual cost of care provided plus payment due in lieu of notice period" compared with "payments received" then work out the balance.

No offence meant, but I see this as an object lesson for CMs thinking that 'averaged monthly payments' will always offer a quick and simple payment option. :(

[Rashi]

It was the parents who wanted the fixed monthly payment. It didn't bother me either way but I won't tolerate parents calculating what they think they should pay. It's my business and I do the invoicing.

[Chatterbox Childcare]

I have messaged you with my calculation but cannot email it over to you as I don't have your email address. Please pm it to me and then you can see how I did it.

Monthly fees are easy to do if you understand what you are doing.

I cannot see how you can charge more - only what it states in your contract.

[AmyWatty]

Reading this makes me thankful my hubby is an Accountant - this fuzzes my head!!!! X