Purpose

To record and maintain the formulas determining how income from fees is distributed between Organisational Unit Accounts via their Account Classifications.

SubSystem

Finance

The formulas recorded in this form are used to specify how income from fees assessed in particular Fee Periods is to be distributed across various budget centres of the institution. A set of formulas determines the amounts and distribution patterns for each Fee Type specified. Each formula is matched, either directly or by virtue of the classification to which it relates, to one or more accounts owned by an Organisational Unit or units.

Income is disbursed on a student-by-student basis for institution-wide fees, and on a course-by-course basis where a Fee Liability has been incurred for a single Course Attempt. This income includes amounts retained when a student decreases their study load or withdraws from a course. Depending on the method and Formula Type used, those of the student's study units with load in the Fee Period under consideration are also taken into account. For each student with an assessed liability for a particular Fee Type, the income derived from that liability - whether anticipated (the balance at the last assessment) or actual (the total of payments made when the Disbursement process is run) - is distributed according to the appropriate set of formulas.

Evaluating formulas

Each formula in the set applying to a Fee Type/Calendar Instance is given an evaluation order number and the set is processed in the sequence indicated by these numbers. The sequence order is important:

• Where formulas are operating on balances after previous formulas have been applied, rather than on the gross amount
• Where the amount to be disbursed cannot satisfy all allocations indicated by the formulas.

Components of a formula

The income (Assessment or Retention amount) on which a formula operates is determined by the Formula Type. Formulas of the same Formula Type constitute a single formula 'set'. Results of formula calculations are determined by the Disbursement Method, the Allocation Method, and whether the Disbursement is based on a Fixed amount or a Percentage. These components, and the base balances on which percentage formulas can operate, are described in the next section. For a set of formulas based on Retention Income, Disbursement and Allocation Methods are more restricted than for a set of formulas based on Assessment Income.

Scope

Disbursement for a formula may be confined to income derived from a particular group of students liable for the Fee Type. For example, the formula may only apply if students are studying at a specific location. This type of distinction is achieved by applying a Formula Rule. Access the Maintain Fee Disbursement Formula Rules form (FINF7240) via the Formula Rules button.

There is also an ability to vary a Disbursement formula depending on the Fee Category under which a student became liable for the fee. Fee Category Formulas are set up in the form FINF7220 accessed via the Fee Category Formula button.

Duration

By default, each formula operates for the period between the Start Date Alias Instance and End Date Alias Instance of the relevant Fee Period for the Fee Type. However, this time can be reduced by overriding either or both dates. Using this facility, the set of formulas can vary over the Fee Assessment Period.

Further information:

• An overview of the Fee Disbursement Processing Cycle is given in Understanding Student Finance.
• Setup information is given in the Specialist User's Overview.
• For suggested formula combinations and examples see the Fee Disbursement section in Special Topics. Note that these examples deal with a set of Assessment Formulas only.
• The job to process fee Disbursements using the formulas, and create snapshots is FINJ7300.

For further information on Alternative Disbursement, see the heading 'Special Note on Alternative Disbursement' in FININTR3 - Understanding Student Finance.

The Fee Type block contains:

• Fee Type
• Closed check box
• System Fee Type (POP)
• System Fee Trigger Cat (POP)
• Management Level (POP)

The Fee Type Calendar Instance block contains:

• Calendar Type
• Description
• Start Date
• End Date
• Status

The Fee Disbursement Formula block contains:

• Evaluation Order
• Formula Type (POP)
• Disbursement Method (LOV)
• Allocation Method (LOV)
• Disbursement Fixed
• Disbursement %
• Base Balance
• Formula Number
• Default Period
• Override Period
• Description
• Classification (LOV)
• Organisational Unit (LOV)

  Buttons

• Formula Rules (FINF7240)
• Categorisation (FINF7230)
• Fee Category Formula (FINF7220)

Rule/Notes:

For the Graduation fee type, only the STUDENT Allocation Method is applicable.

Validations include:

• If Managment Level = COURSE or NULL and Formula Type is RETENTION, and the System Fee Trigger Cat does not = INSTITUTN, then the Disbursement Method must not be UNITTEACH
• Warning: if the configuration method is different to that of the form
• If Fee Type Management_Level = UNIT and Formula Type is RETENTION and s_fee_trigger_cat != ‘INSTITUTN’ and the Disbursement Method = ‘ UNITTEACH ’, then the Allocation Method must be ‘PERUNIT.

In query mode, find or type in the required Fee Type and select the Fee Period (Fee Type Calendar Instance) to which the set of formulas in the next block apply.

Rules/Notes:

Disbursement formulas can be created for Fee Type/Calendar Instance combinations of all statuses - ACTIVE, INACTIVE and PLANNED.

Create or modify a set of formulas for the selected Fee Type/Calendar Instance in the Fee Disbursement Formula block as follows.

For each formula:

Enter an evaluation order number to determine the position of this formula in the evaluation sequence (1 is evaluated first). (See 'Example evaluation' in the right hand column.). If both ASSESSMENT and RETENTION income is disbursed for the Fee Type, the number entered must be unique across both sets.

Select a Formula Type from System values ASSESSMENT or RETENTION to determine the income source to which the rest of the formula components apply.

Create the formula by supplying values for the fields below:

• Disbursement Method allows a proportion of the income from a liability to be dispensed directly to an account owned by a named Organisational Unit (DIRECT), or
• To any Organisational Unit with an account classification signifying either that
  • It is the 'owner' of a course for which the Fee Liability was incurred (COURSEOWN), or
  • It has teaching responsibility for a unit studied by the student which contributed to the Fee Liability (UNITTEACH)

Disbursement amount can be calculated in two ways.

• If a Fixed amount is entered, this amount is multiplied by the number of elements associated with the Allocation Method. (For Fixed amounts the base balance value does not affect functionality.)
• Alternatively, a Percentage can apply (operating on a set of a single Formula Type), with the percentage being either:
  • Of the original amount of the liability (base balance is GROSS) or
  • Of the balance after the last formula for a Fixed Disbursement was calculated (base balance is NET) or
  • Of the balance after all formulas with a higher evaluation order number have been evaluated (base balance is REMAINDER).
• Where a Percentage is specified, the amount is split across the number of elements associated with the Allocation Method
• See 'Allocation Methods' and 'Example: fixed and percentage' in the right hand column

To override the default period during which the formula operates, enter a Start and/or End Date to indicate the Override Period. Where only one date is entered, the default completes the pair.

Enter the Classification code. This is used to direct disbursed amounts calculated by the formula to the accounts of Organisational Units eligible to receive Disbursement for the Fee Type. (Refer to documentation for FINF1H00).

If the Disbursement Method is DIRECT, supply the code of the Organisational Unit that is to receive the amount calculated.

Called forms can be accessed via buttons.

• To maintain or view Categorisation for the formula, access form FINF7230
• To specify or view the Formula Rules that applies in determining students or courses to which the formula applies, access form FINF7240
• To supply different formulas for specific Fee Category Formula in which the Fee Type is a liability in the Fee Period selected, access form FINF7220

Rules/Notes:

Each record is regarded as one formula within the total group of formulas applying to the Fee Type/Calendar Instance combination. A formula number is provided by the System.

Formulas of a single Formula Type (either ASSESSMENT or RETENTION) form an independent set.

Disbursement formulas are in local currency. For details about converting assessed or payment amounts where necessary, see documentation for the Fee Disbursement process creating snapshots.

Where a course is jointly owned, disbursed income due for that course, once the formula has been applied, is split according to the percentages recorded in Maintain Course Ownership (CRSF1220, via CRSF1210) or Maintain Teaching Responsibility Overrides (CRSF2520).

Where teaching responsibility for a study unit rests with more than one Organisational Unit, disbursed income due for that unit once the formula has been applied is split according to the Percentages given in Maintain Teaching Responsibility (CRSF2220, via CRSF2210).

Disbursement Methods for RETENTION Formula Types are restricted to:

• DIRECT (all System Fee Trigger Categories)
• COURSEOWN (all System Fee Trigger Categories except INSTITUTN)

Allocation Methods are System defined, and are STUDENT, PERCOURSE, PERUNIT, CRPOINT and EFTSL. A suggestion is that in general the Allocation Method will match the Fee Assessment Charge Method.

Allocation Methods for RETENTION Formula Types are restricted to:

• STUDENT (all System Fee Trigger Categories)
• PERCOURSE (all System Fee Trigger Categories except INSTITUTN)

Example - fixed and percentage (ASSESSMENT Formula Type). A course-based Tuition Fee Liability is to be disbursed via UNITTEACH with an Allocation Method of EFTSL. The student has studied two units (taught by different departments) with EFTSL of 0.25 and 0.125 respectively (total EFTSL = 0.375).

• With a fixed amount of $200 one department will get $50 (200 * 0.25) and the other $25 (200 * 0.125) for this student.
• With a percentage of 10% (GROSS) on a liability of $350, one department will get $23.33 (0.25/0.375 * 35) and the other $11.67 (0.125/0.375 * 35). (To 2 decimal places, rounded.)

Example evaluation (for a single Formula Type) of a set of 6 formulas (ordered top to bottom) on an amount of $1000. The amount calculated by each formula is in brackets, and the balance is shown at the right. Note that NET calculations are based on the last fixed amount.

Formulas are resolved in order until the assessed or payment amount equals zero. If the balance drops below the amount needed to satisfy a particular formula, an adjustment is made to divide the reduced amount in accord with the formula.

For each formula, the default formula period shown in red is derived from the Start and End Date Aliases for effective assessment (as distinct from the Start and End Dates of the Fee Period) that are recorded against the Fee Type in form FINF2100.

Override Periods must be within the period specified by default.

A lamp displays if Fee Category overrides exist for a formula.

Check list when creating a set of formulas for a single Formula Type:

• Ensure that the sum of all Percentage NET or GROSS Disbursements is less than or equal to 100.
• Only one formula should have 100% Disbursement using REMAINDER.
• A Fee Category override should not have the same components as the formula it overrides.