Reconciliation Setup

The reconciliation feature enables franchise accounts to transfer payments for gift cards, packages, and membership redemptions between locations or across different franchise accounts.

Things to know:

• 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, the global database must be enabled for the following where applicable:
  • Clients
  • Services
  • Inventory
  • Classes
  • Membership templates and client memberships (required for membership reconciliation)
  • Gift cards (required for gift card reconciliation)
  • Packages (required for package reconciliation)
• The goal of reconciliation is to minimize the number of bank transactions required between franchise accounts.
  • The amount owed and the amount due for each franchise account are considered. If the amounts equal out, no payments are made, as the net amount is $0.
  • All collected funds are pooled together and distributed to the franchise accounts owed money.
• Reconciliation records are created each time a ticket is closed, provided reconciliation is active at that time.
• If a refund occurs for a product, class, or service, the credit will reflect in the period when the refund was processed.
• For payments made partially with cash/card and partially with credits, only the portion paid with credits will appear on the reconciliation report. 
• Reconciliation Calculation
  • Reconciliation is calculated as X% of the retail service, product, or class value at the source or destination location, or based on the reconciliation price set on the membership template. 
  • The "% to Transfer" field, once set, applies to all locations using reconciliation.
  • If no value or 0% is entered in the "% to Transfer" fields for a specific category (services, products, or classes), reconciliation will not be calculated for that category.
  • If a percentage is entered for one category but not the others, reconciliation will only be calculated for the categories with a valid percentage.
  • For example:
    • Services - 15%
    • Products - 0% / Blank
    • A client redeems a gift card, membership, or package to pay for both a service and a product.
    • Service: Since 15% is entered for services, 15% of the service value will be transferred between locations.
    • Product: Because 0% or no value is entered for products, no transfer will occur for the product.
      
• Reconciliation Frequency
  • Changing the reconciliation frequency is not recommended once set.
  • If you must change it, reconciliation will run once the change is applied and will begin from the date of the change.
  • We recommend setting reconciliation to occur once per month.
    
• Bank Account Requirements
  • A reserve bank account on the parent account is required for reconciliation. This account:
    • Acts as the reserve in case a source account has insufficient funds.
    • Serves as the pool account where all contributions are collected before payouts.
  • Reserve bank account details cannot be edited. To make changes, you must delete and re-add the account with the correct information.
  • If a franchise account’s bank account is:
    • Missing, invalid, closed, incomplete, or experiencing banking errors (e.g., no ID uploaded), no deposit will be made.
    • Funds for that account will remain in the reconciliation pool until banking information is corrected.
    • If funds cannot be collected from a franchise account that owes money, the system will attempt to pull the funds from the parent reserve account.
    • If the reserve account also lacks sufficient funds, reconciliation will not take place for that period.
      

To configure reconciliation at the parent level:

1. Navigate to Business Setup > Settings 
2. Scroll down to the Reconciliation Settings
3. Toggle "Enable Reconciliation" to YES 
4. Choose what will be reconciled: gift cards, packages, memberships, or all three. If memberships are selected, an additional section will appear. This setting determines how the transfer amount is calculated:
   • When enabled: The price of services, products, or classes from the destination location will be used to calculate the amount to transfer to the location where the membership was originally sold.
   • When disabled: The price from the source location will be used instead.
5. Enter the percentage of the dollar value to be transferred from one franchise account to another. This percentage will be calculated based on the retail value of services, products, or classes at either the source or destination location, or according to the reconciliation price set on the membership template. 
   • If no value or 0% is entered for a specific category (services, products, or classes), reconciliation will not be calculated for that category.
   • If a percentage is entered for one category but not the others, reconciliation will only be calculated for the categories with a valid percentage.
6. Choose how often reconciliation should run and a start date. We recommend setting reconciliation to run once per month. Options include:
   • Daily
   • Weekly
   • Monthly 
7. Add the details of the reserve bank account (typically the corporate account). This account acts as the pool for collecting and distributing reconciliation funds. 

Related Articles:

• ACH Fee for Reconciliation
• Reconciliation for Packages  
• Reconciliation for Gift Cards  
• Reconciliation for Memberships  
• Reconciliation Detail Report  
• Reconciliation Settlement Report