Reconciliation is the key process used to match payments with sales. Amilia Reconciliation allows you to link a payment to one or more items on an invoice, resulting in more detailed financial reporting and a minimization of accounting errors. It's a best practice that will provide accuracy and consistency in your financial accounts!
Within any client's billing account, you'll notice icons on the bottom left of all transactions; representing the reconciliation status of each invoice, payment receipt, deposit, cancellation and/or credit. Each item on an invoice must be accounted for and Amilia helps you keep track of them all!
- Full Reconciliation: An invoice was paid in full at the time of purchase or a payment (receipt), deposit, cancellation or credit has been fully matched with associated invoice items.
- Partial Reconciliation: Indicates items on an invoice have not been paid in full, or a payment has not been assigned in full.
- Not Reconciled: No reconciliation(s) exist.
- Reconciled with Post-dated payments: An invoice's items are fully associated with future payments (installments). As these payments have not yet occurred, the invoice is not yet considered fully reconciled. NOTE: If the future payments don't cover the full amount of the invoice, the invoice will appear as Partially reconciled.
How does Reconciliation work?
To reduce the risk of manual error, Reconciliation occurs automatically under these conditions:
- When buying from an online store and the purchase is paid in full at checkout;
- When buying from an online store and the purchase is paid in full using installments (at checkout); and
- When a client makes a payment via their user account that is equal to the account balance.
If a payment does not reconcile automatically to an invoice's item(s), then an administrator must perform the reconciliation themselves.
If a payment is not reconciled, it will not show as belonging to an invoice item nor a ledger code in your finance reports.
How to Find Unreconciled Items
To facilitate locating accounts with unreconciled items, click on the Clients>Unreconciled items sub-tab.
Select the name of the account owner to see the corresponding Client billing tab.
The Receipt ID is linked to the specific payment, refund, deposit and/or credit that has not been reconciled with invoice items.
How to Reconcile a Client's Transactions
If there are transactions in your client accounts that are showing as or then it's recommended to look at each one to ensure the accounts are in agreement.
There are 2 ways an administrator can reconcile payments, deposits, refunds and credits with invoices:
Reconciling your client accounts is not mandatory but it does allow for more detailed financial reporting, including payment reports showing the amount that was paid for a specific invoice item. NOTE: If your organization is based in Quebec and you emit RL-24's, then it is mandatory to apply reconciliation to provide representative tax receipts.
Remove a reconciliation
To remove specific reconciliations, follow this procedure:
- To remove a reconciliation on an item, access the transaction by clicking .
- Click on Reconciliations and click on the icon.
- Click on the icon.
- Auto-Reconcile client accounts via Operations;
- Manually reconcile an account via the Client billing tab;
- Entering a payment in a client's account;
- Cancelling a purchase and issuing a refund;
- Editing installments in a customer's account; and
- The importance of ledger codes.