This feature and corresponding reports allow franchise accounts to transfer payments for gift cards, packages, and memberships from one franchise account to the next.
Some key notes about Reconciliation:
- To reconcile between 2 locations within the same franchise, global database does not have to be enabled.
- To reconcile between 2 locations belonging to different franchises, global database must be enabled for the following where applicable:
- Clients
- Services
- Inventory
- Classes
- Membership templates + client memberships have to be enabled for reconciliation to work on memberships
- Gift cards have to be enabled for reconciliation to work on gift cards
- Packages have to be enabled for reconciliation to work on packages
-
The overall goal of this reconciliation process is to utilize as few bank transactions as possible.
- To best do this the amount owed and the amount due for each franchise account is taken into consideration. If the amount they owe and are due equal out, nothing will be collected or paid to them as the net amount equals $0.
- All the funds collected are put into a “pool” to then be transferred to the franchise accounts that are owed money.
- Reconciliation records are created each time a ticket is closed if reconciliation is active at the time.
- If there is a refunded product, class, or service, we will credit reconciliation in the period that the refund occurred.
- If an item is paid for partially in cash/card and partially in credits, only the portion that was paid for with credits will be shown on the reconciliation report.
- The reserve bank account on the parent is required for reconciliation to work. It serves as the "reserve account" in case any of the source accounts have insufficient funds. It is also the "pool account" that is used to gather all the paying franchisee contributions before starting the payout process.
- If there is no bank account or the bank account is not allowing deposits (account is invalid, closed, incomplete information supplied, no ID was uploaded, or some other banking error occurred, etc), no deposit will be made to that franchise account. The funds will stay within the reconciliation pool until the account information has been updated.
- If funds cannot be collected from a franchise account that owes, the funds will be pulled from the reserve account on the parent. If the reserve bank account also has insufficient funds, the reconciliation will not take place at all in that period.
- Changing the reconciliation frequency is not recommended once it has been set. In the event you do have to change it, it will run a reconciliation once the change has been set, and will begin from the date of the change. We recommend it once a month.
- The reserve bank account details cannot be edited but can be deleted and re-added with the correct information.
Setup:
This is enabled from the Parent account. This will apply to all franchise accounts.
Navigate to Business Setup > Settings > Compensation Settings > Reconciliation Settings
Reconciliation Setup includes 5 sections:
1. Toggle to enable or disable Reconciliation Settings
2. Designation for what will be reconciled
-
This will allow you to choose 1, 2, or all 3 options.
- If membership is selected, an additional section for membership is presented. This uses the price of services, products, or classes from the destination location when calculating the amount to be transferred over to the location the membership was purchased. When unchecked, the price of service, products or class from the source location will be used
- If membership is selected, an additional section for membership is presented. This uses the price of services, products, or classes from the destination location when calculating the amount to be transferred over to the location the membership was purchased. When unchecked, the price of service, products or class from the source location will be used
3. The percentage of the dollar value that will be transferred from one franchise account to another.
- This is a set percentage for all franchise accounts.
4. How Frequently reconciliation will run for your accounts
- We recommend it once a month.
5. Reserve Bank Data- Typically this is a corporate account