The membership reconciliation process occurs when a membership is purchased at one location (source location) but redeemed at another (destination location). In this article, we will walk through how reconciliation works when memberships are redeemed across different franchise locations.
Things to know:
- To activate the reconciliation feature, follow the steps provided here
- Source Location: Where the membership was originally purchased
- Destination Location: Where the membership was redeemed/used
- Reconciliation %: The percentage of the item value (service, product, class) to be transferred from the source to the destination location.
- Reconciliation records are automatically generated when a ticket is closed, as long as the reconciliation feature is active at the time of closing.
- All reconciliation data is captured in the Reconciliation Detailed Report
- Membership Item Credits: Reconciliation for item credits (services, products, or classes) can be calculated using one of the following methods:
- Retail Price at the Source Location
- Retail Price at the Destination Location
- Fixed Reconciliation Price specified in the membership template
- If a fixed reconciliation price is used, it is set at the parent account level for global memberships and at the child account level for local memberships.
- Membership Value Credits: Reconciliation for membership value credits will be based on the membership value credits spent at the destination location multiplied by the adjustment rate
CONTENTS
- Reconciliation for Value Credits
- Reconciliation for Item Credits: Based on Destination Retail Price
- Reconciliation for Item Credits: Based on Source Retail Price
- Reconciliation for Item Credits: Based on Fixed Price from Membership Template
Reconciliation for Value Credits
Configuration
Reconciliation % of the price to transfer
20% of services
- 15% of products
- 10% of classes
Example 1: Fully Covered Items
- Client purchases membership at Franchise 1
- Uses it to pay for services/products at Franchise 2
- Service Price: $80 (fully covered)
- Product Price: $20 (fully covered)
Reconciliation Calculation:
- Service: 20% of $80 = $16
- Product: 15% of $20 = $3
- Total Reconciled: $19 from Franchise 1 to Franchise 2
Example 2: Partially Covered Items
- Service Price: $80 → Only $40 paid using value credit
- Product Price: $20 → Only $10 paid using value credit
Reconciliation Calculation:
- Service: 20% of $40 = $8
- Product: 15% of $10 = $1.50
- Total Reconciled: $9.50 from Franchise 1 to Franchise 2
Reconciliation for Item Credits: Based on Destination Retail Price
Configuration
- The checkbox “Use service/class/product price from location where membership is being used” is checked
- % of the price to transfer:
20% of services
- 15% of products
- 10% of classes
- Retail Price on Franchise 1
- Product - $60
- Service - $20
- Class - $50
- Retail Price on Franchise 2
- Product - $34
- Service - $18
- Class - $65
Membership bought at Franchise 1, used at Franchise 2
Reconciliation Calculation
- Service: 20% of $18 = $3.60
- Product: 15% of $34 = $5.10
- Class: 10% of $65 = $6.50
- Total Reconciled: $15.20 from Franchise 1 to Franchise 2
Reconciliation for Item Credits: Based on Source Retail Price
Configuration
- The checkbox “Use service/class/product price from location where membership is being used” is unchecked
- % of the price to transfer:
20% of services
- 15% of products
- 10% of classes
- Retail Price on Franchise 1
- Product - $60
- Service - $20
- Class - $50
- Retail Price on Franchise 2
- Product - $34
- Service - $18
- Class - $65
Membership bought at Franchise 1, used at Franchise 2
Reconciliation Calculation
- Service: 20% of $20 = $4
- Product: 15% of $60 = $9
- Class: 10% of $50 = $5
- Total Reconciled: $18 from Franchise 1 to Franchise 2
Reconciliation for Item Credits: Based on Fixed Price from Membership Template
How to Configure Reconciliation Price
- Navigate to Business Setup > Memberships
- Create a new membership using the "Add New Membership" link or edit an existing membership using the edit icon
- In the Item Credits section, click + Add Reconciliation Price for Location(s)
- Set specific prices per location or a global price
- Save by selecting Publish Membership
Scenario 1: Reconciliation Price for One Location
Configuration
- The checkbox “Use service/class/product price from location where membership is being used” is checked
- % of the price to transfer:
20% of services
- 15% of products
- 10% of classes
- Reconciliation price on membership template:
- $60 for Franchise 1
- No reconciliation price configured for Franchise 2
- Retail Price on Franchise 1
- Product - $90
- Service—$230
- Class - $150
- Retail Price on Franchise 2
- Product - $85
- Service - $220
- Class - $130
Reconciliation Calculation
Since Franchise 2 has no reconciliation price configured, the system will fall back to Franchise 2’s retail price for the reconciliation calculation.
- Service: 20% of $220 = $44
- Product: 15% of $85 = $12.75
- Class: 10% of $130 = $13
- Total Reconciled: $69.75 from Franchise 1 to Franchise 2.
Scenario 2: Reconciliation Price for One Location
Configuration
The checkbox “Use service/class/product price from location where membership is being used” is unchecked
- % of the price to transfer:
20% of services
- 15% of products
- 10% of classes
- Reconciliation price on membership template:
- $60 for Franchise 1
- No reconciliation price configured for Franchise 2
- Retail Price on Franchise 1
- Product - $50
- Service - $200
- Class - $150
- Retail Price on Franchise 2
- Product - $40
- Service - $210
- Class - $130
Reconciliation Calculation
Franchise 1’s reconciliation price is used in the calculation since it is available.
- Service: 20% of $60 = $12
- Product: 15% of $60 = $9
- Class: 10% of $60 = $6
- Total Reconciled: $27 from Franchise 1 to Franchise 2
Scenario 3: Same Reconciliation Price for All Locations
Configuration
- The "Use service/class/product price from location where membership is being used" checkbox is checked/unchecked
- % of the price to transfer:
20% of services
- 15% of products
- 10% of classes
- Fixed reconciliation price = $60 for all locations
- Retail Price on Franchise 1
- Product - $70
- Service - $100
- Class - $150
- Retail Price on Franchise 2
- Product - $40
- Service - $110
- Class - $130
Reconciliation Calculation
- Service: 20% of $60 = $12
- Product: 15% of $60 = $9
- Class: 10% of $60 = $6
- Total Reconciled: $27 from franchise 1 to Franchise 2
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