How to Process Payment Reconciliation

Payment reconciliation definition: Payment reconciliation is the process of comparing a company’s internal financial records with external statements (like bank statements, credit card statements, or vendor statements) to ensure all payments made and received are accurate and consistent. It helps identify discrepancies, errors, or missing transactions, and ensures that a business’s financial reporting is accurate and up-to-date. 

In essence, it’s about making sure your financial records match what’s actually happening in your bank and other accounts.

Here are the steps to process payment reconciliation: 

Description: The new payment reconciliation now allows the user to reconcile both the subsidy and grant funders at the same time. Allowing for adjustments from one funder to the other or the guardian payer.  

How to: 

1. Select Accounts Receivable 
2. Select Payments 
3. Select Payment Reconciliation 
   • Add Payment Reconciliation 
     • Select Customer Statement Period 
     • Select Subsidy Provider 
     • Select Grant Provider 
     • Select Branch 
     • Select Location  
     • Select GO 
     • De-select any contacts that were not paid in the funder payment summary report 
     • Select GO 

If the total subsidy and total grant displayed is correct (what was received from both funders), select POST. (This will close the payment reconciliation for the statement period.)

If the total is not correct, select the edit beside the child where the amounts are not correct. 

Update the total amount to the correct payment amount, then proceed with one of the following actions on what needs to be done with the balance.  

• Adjust Payer – Create a manual invoice or credit to the guardian payer. 
• Adjust Entry – Create an adjustment to the adjust entry customer item and update the AR for the funder selected. 
• Adjust Subsidy – Create an adjustment to the subsidy provider customer item, and update the AR for the funder selected.   
• Adjust Grant – Create an adjustment to the grant provider customer item, and update the AR for the funder selected.   
• Pending – Leaves the balance to paid at a later date.  

Repeat until the payments match. 

Once happy with results/ balance, click the POST. 

Select the PRINT button to view the reconciliation document.