7.3 - Grant calculation

The "Grant calculation" form allows you to calculate the planned amounts of grants or actual payments made in connection with a given funding. The calculation divides an available sum between the various grants, taking into account the predefined restrictions relating to the status of grants (fixed amount, minimum and maximum authorised amount of the grant by time unit). Various parameters enable the calculation method to be adapted to an individual situation. The results of the calculation can finally be transferred into the grants as a planned amount or as a payment (in the form of entries).

To open the "Grant calculation" form, select the funding you require from the "Funding" form, then click the " Grant calculation " button on the "Tools" tab in this form.

1 - Description of the "Grant calculation" form

"Available" frame

This frame allows you to define the amount available for the calculation. It includes the following fields:

• Revenue: sum equal to the total amount of resource-type entries associated with the funding - non-editable
• Expenses: sum equal to the total amount of expenses-type entries associated with the funding - non-editable
• Include expenses: take account of expenses (payments already made) in determining the available amount (options: Yes/No)
• Security amount: amount to be deducted from the revenue for the calculation because reserved for subsequent expenses
• Available: amount calculated automatically from the total revenue minus the total expenses (if "Include expenses" is set to Yes) and minus the total security amount (unless zero) - non-editable

The "Available amount" is the amount used for calculating the grant amounts as the amount to be divided between the grants.

"Settings" frame

This frame is used for modifying the various settings influencing the calculation of the grant amounts:

• Calculation modus (by time unit): this parameter allows you to choose between two calculation modus (see Calculation rule 4 below):
  - "Calculated amount identical": the calculation tries to assign the same amount per time unit to all grant holders with the same status. The calculation may not correct any discrepancies in grant amounts arising from earlier payments.
  - "Final amount identical": the calculation tries to ensure that after assignment by the calculation, all the grants with the same status have the same total amount (including previous payments) per time unit. The calculation tries to correct any discrepancies in the grants arising from previous payments.

• "”Return of money": this option allows you to choose whether or not to take account of the repayment of previous overpayments (see Calculation rule 5 below).

"Result" frame

This frame shows the results of the calculation. It includes the following non-editable fields:

• Total calculated: sum of the individually calculated amounts
• Remaining after calculation: sum calculated as the difference between the "Available amount" and the "Total calculated"

"Status" frame

This frame contains a list of all the grant statuses associated with the selected funding. For each status this list shows restrictions relating to that status (fixed amount, minimum and maximum by time unit), the number, period and total amount of associated grants, two Calculation columns and a total amount. One of the Calculation columns is enabled according to which method of calculation is selected, and it contains the calculated amount or the final amount per time unit taken as the basis for calculation. The total amount contains the sum of the individual results of the calculation.

The checkbox at the beginning of each line allows you to disable a status. This means that the amount assigned to each grant associated with this status is automatically replaced with 0 and will be 0 for a new calculation.

The "Blocked" checkbox allows you to block the amount in the "Calculation" column. This means that this amount and the amounts assigned to each grant associated with this status will not be changed for a new calculation.

The amount to be assigned for a status can be changed manually in the Calculation column. This means that the amount assigned to each grant is immediately recalculated automatically for each grant associated with this status.

"Grants" frame

This frame contains a list of all the grants associated with the selected funding. This list includes, for each grant, the status and period of the grant, the restrictions associated with the status (total minimum and maximum authorised amounts), the planned amount, the total amount and the balance of the grant before calculation, a Calculation and a Total column. The Calculation column includes the amount assigned by the calculation for this grant, the Total column contains the sum of the grant before calculation and the assigned amount.

The checkbox at the beginning of each line allows you to disable a grant. This means that the amount assigned to this grant is automatically replaced with 0 and will be O for a new calculation.

The "Blocked" checkbox allows you to block the amount in the "Calculation" column for a grant. This means that this amount will not be changed for a new calculation.

The amount to be assigned for a grant can be changed manually in the Calculation column.

Calculate button

This button starts the calculation of the grants. The calculation principles are described in section 2.

Initialise button

This button allows you to reset the form by clearing all previous data or calculations.

Transfer button

This button allows you to transfer the amounts calculated into the grants. The transfer of calculations is described in section 3.

2 - Calculation rules

Rule 1: Compliance with restrictions defined at the status level

For each grant, the amount assigned by the calculation is such that the final amount, taking into account previous payments and the calculated amount, complies with the minimum and maximum authorised amounts for this grant as defined at the status level.

These restrictions are always complied with except in the following cases:

• The "Return of money" option is disabled (in which case the maximum authorised amount is not complied with for all grants already exceeding that amount before calculation)
• A status or a grant is disabled (in which case no amount is assigned, restrictions may not be complied with)
• An amount is fixed for a status or a grant (in which case the fixed amount is assigned, restrictions may not be complied with)

Rule 2: Optimisation of the use of the available amount

The calculation starts by checking that the available amount is sufficient to reach the minimum authorised amount for every grant of every status and, where applicable, is sufficient to reach the maximum authorised amount for every grant of every status. There are three possible scenarios:

• Scenario 1: The available amount is not sufficient to reach the minimum authorised amount for every grant of every status. In this case an error message is displayed to tell you that the calculation cannot be performed.
• Scenario 2: The available amount is sufficient to reach the maximum authorised amount for every grant of every status. In this case the result of the calculation for each grant is the amount allowing the maximum to be reached. The balance after the calculation is still positive.
• Scenario 3: The available amount is sufficient to reach the minimum authorised amount for every grant of every status but not sufficient to reach the maximum authorised amount for every grant of every status. In this case the result of the calculation is optimised so as to divide the available amount fairly and to the greatest possible extent between the grants while complying with the status restrictions. The balance after the calculation is still positive, but close to 0.

Rule 3: More than one status open

A status is said to be open if the minimum and maximum authorised amounts for this status are different, the status is not disabled at the time the calculation is performed and the amount to be assigned for this status at the time the calculation is performed is not fixed.

In rule 2 scenario 3, it is advisable not to have more than one open status but instead to fix the amount to be assigned for every status except one. If more than one status is open, the calculation is very complex. The amount to be assigned is optimised so as to achieve an equal ratio between 1) the difference between the final amount assigned and the minimum authorised amount and 2) the difference between the maximum authorised amount and the minimum authorised amount.

Example:
Status A, minimum authorised amount: 100, maximum authorised amount: 150, final amount assigned: 115 (ratio: 15/50)
Status B, minimum authorised amount: 150, maximum authorised amount: 300, final amount assigned: 195 (ratio: 45/150)

Rule 4: Calculation modus(by time unit):

This setting allows you to choose one of the following calculation options:

• "Calculated amount identical": For each status the calculation determines a single amount per time unit to be assigned independently of the amounts already paid individually.
  Example: The result of the calculation for a status is 100 euros/month. For every grant associated with this status, the calculated amount is 100 euros/month multiplied by the period of the grant in months. A 6-month grant holder will receive 600 euros in total, whether or not he has already received 100 or 150 euros per month.
• "Final amount identical": For each status the calculation determines a single final amount per time unit; the total amount to be assigned to each grant is calculated from this as the difference between the total final amount for this grant and the sum of the payments already made. The amount assigned will therefore compensate for any discrepancies in the payments already made.
  Example: The result of the calculation for a status is 200 euros/month. For every grant associated with this status, the final amount after assignment is 200 euros/month multiplied by the period of the grant in months. A 6-month grant holder will receive a sum depending on what he has already received: 600 euros if he has already received 100 euros/month or 300 euros if he has already received 150 euros/month.

If it is an initial calculation (no payment previously made), both options will lead to the same result.

Rule 5 - "Return of money" option

If this option is enabled, the amount allocated to certain grant holders may be negative so as to correct an overpayment and so not exceed the maximum authorised amount for the status or the calculated final amount. In this case these negative amounts to be repaid increase the amount available for the calculation and are reassigned to the other grants.

If this option is not enabled, a negative amount cannot be assigned. Before the calculation, certain grants may not comply with the maximum authorised amount. In such a case the amount assigned to these grants is zero.

3 - Transferring the calculation

Once the calculation has been performed, the calculated amounts can be confirmed and transferred into the grants by clicking the "Transfer" button, which opens the "Transfer calculation" window.

There are two transfer options:

• Planned amount: the calculated amounts replace the planned amounts for each grant (transfer only possible in the case of an initial calculation)
• New entries: the calculated amounts are linked to grants in the form of automatically generated entries

In the second case three additional fields allow you to define an entry date (mandatory), the type of expense (mandatory) and a description (optional) in addition to the entry description generated automatically from the name of the grant holder and the type of payment.

Once you have filled in the fields, click the Transfer calculation button to confirm.

4 - Examples

Initial calculation of grant amounts

The calculation of grant amounts can be used at the start of a financial year before any payments are made, to determine the planned amount for each grant holder or to make the first payment.

Condition 1: The amount paid by the funding agency has been entered in the form of entries in the "Funding" form and the Resources amount is not zero.

Condition 2: No payment has been made to the grant holders and the Uses amount is zero.

Condition 3: The restrictions for each status (fixed amounts, minimum and maximum per time unit) have been correctly defined in the "Status" tab of the "Funding" form.

Condition 4: The option selected for method of calculation is irrelevant if no status is open (different minimum and maximum authorised amounts).

Condition 5: The Authorise repayments option is disabled.

Calculation: Clicking the Calculate button will assign the following amount to each grant holder: minimum amount per time unit x period of grant (+ fixed amount if not zero)

Transfer: Clicking the Transfer button allows you either to save the calculated amount as the planned amount of the grant or to automatically create entries corresponding to the payment for each grant holder.

Adjustments over the year

The calculation of grant amounts can be used throughout the financial year to correct the amounts already paid to grant holders or to make payments to new grant holders.

Condition 1: The amounts paid by the funding agency and all the payments made to the grant holders have already been entered in the form of entries in the "Funding" form and the Available amount is not zero.

Condition 2: The restrictions for each status (fixed amounts, minimum and maximum per time unit) have been correctly defined in the "Status" tab of the "Funding" form.

Condition 3: Changes have been made since the previous calculation: correction of a period or a grant status for a grant holder who has already been paid, addition of a new grant holder for payment, changes to restrictions for a status, etc.

Condition 4: The option selected for method of calculation is irrelevant if no status is open (different minimum and maximum authorised amounts).

Condition 5: The Authorise repayments option must be enabled if any overpayments are to be repaid by the grant holders.

Calculation: For each grant not complying with the associated restrictions, clicking the Calculate button calculates the amount to be paid in order to comply with the restrictions.

Transfer: Clicking the Transfer button automatically creates the entries corresponding to these adjustments.

Redistribution calculation

The calculation of grant amounts can be used at the end of the financial year to distribute a residual amount between the grant holders.

Condition 1: The amounts paid by the funding agency and all the payments made to the grant holders have already been entered in the form of entries in the "Funding" form and the Available amount is not zero.

Condition 2: The restrictions for each status (fixed amounts, minimum and maximum per time unit) have been correctly defined in the "Status" tab of the "Funding" form.
The statuses for which a redistribution is planned must be open (the maximum authorised amount must be different from the minimum authorised amount and must leave a sufficient margin for redistribution). It is preferable for just one status to be open (see calculation rule 3).
The minimum and maximum authorised amounts for the statuses for which a redistribution is planned, the amount of which is already known, must be equal to the final amount of the grant per time unit after redistribution.
The minimum and maximum authorised amounts for the statuses for which a redistribution is not planned but for which an overpayment or underpayment is possible and must be corrected must be equal to the exact amounts which should have been assigned.

Condition 3: The selected method of calculation is preferably "Same final amount" in order to correct any discrepancies which have appeared over the course of the year in the payments to grant holders, for example arising from changes to the period of grants following an extension or break.

Condition 4: The Authorise repayments option must be enabled if any overpayments are to be repaid by the grant holders.

Calculation: Clicking the Calculate button starts the calculation for non-open statuses (correcting any overpayments) then distributes the remaining amount for open statuses.

Transfer: Clicking the Transfer button automatically creates the entries corresponding to the redistributions.