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Reconciliation Date: Reporting Invoice Changes Made Prior to a Certain Period

If you haven’t seen it already, we strongly recommend that you check out our guide on Understanding Invoice Reversals first, as this document will make reference to the concept of invoice reversals and require a basic understanding on how these work in Jane.

What is the Reconciliation Date?

Invoice reversals allow us to help keep track of any changes that have been made to past invoices, so that we can ensure that we have a historically-accurate trail of any and all changes that have been made to our accounting overtime.

With that said, sometimes in a busy clinic it can be difficult to ensure all of the billing for a client is up-to-date on the same day that they come in for their session. Perhaps we accidentally billed the wrong session type, we forgot to insure the appointment, or maybe we left out a specific billing code.

Enter, the Reconciliation Dateoooh, ahhh!

This feature will allow clinic owners and bookkeepers to designate a particular date where any changes made to invoices generated prior will be tracked using invoice reversals. However, any changes made to invoices generated on or after this date will not have their changes tracked.

In other words, the reconciliation date allows you to set a particular grace period of sorts for yourself where any last-minute changes will not generate entirely separate line items and clutter up your reports.

Setting the Reconciliation Date

The Reconciliation Date setting can be accessed by visiting your Settings > Reconciliation Date area in Jane.

Alternatively, when working under the Billing tab, Jane will display the most recent reconciliation date and clicking on the blue date text will jump you directly to the area where a change can be made, if necessary.

Any staff members who have been provided with the Full Access or Administrative Staff / All Billing access levels will be able to access this area.

Here is our guide on working with Staff Access Levels in case you would like to read more about the different permissions you can grant your staff members.

Using the Reconciliation Date

When you visit this area for the first time, Jane will not have a reconciliation date set by default. This means that regardless of the date of the invoice you are working with, any changes made to an invoice will not be tracked using the invoice reversal system.

Jane will simply show the most updated version of the invoice on the report that you are working on, and there will not be a line item capturing the original value of the invoice that was modified.

If you choose to set a reconciliation date, then:

  1. Any changes made to invoices dated prior the reconciliation date will result in an invoice reversal on the date the change has been made.
  2. Any changes made to invoices dated on or after the reconciliation date will not result in an invoice reversals. Jane will only show the most updated version of the invoice and will not record a line item for the original invoice amount.

At any time you can also clear the reconciliation date, which will let Jane know to stop keeping track of invoice reversals altogether.

📍Note: A friendly reminder you will need to use the “invoiced”-version of certain reports in order to see these invoice reversals in action (during the current pay period). Most notably, you’ll want to toggle the Sales Report to be sorted by Invoiced Date, or use the Invoiced (Accrual) version of the Compensation report.

Keep in mind that clearing the reconciliation date will not hide or delete any of the invoice reversal line items that have already been captured in your reports. It will only take effect moving forward.

When To Use the Reconciliation Date (And When Not To)

As per its namesake, you will typically want to set the reconciliation date to the last day that your reports were reconciled.

This might be the end of a payroll period once you have reviewed all of the pertinent services rendered and have paid out your practitioners. For example, if a clinic pays out their practitioners on the 15th of the month, once the cheques have been sent and signed, as a final procedure one would change the reconciliation date to the 16th. This would ensure that if any changes were made to an invoice that the clinic has already compensated a provider for, you will catch it right away via the invoice reversal.

Alternatively, if you are working with a bookkeeper or accountant, the reconciliation date can be set to the date when financial data was last passed along for their review. For example, if a clinic sends their bookkeeper an exported Excel copy of your Sales report at the end of each month, they should set the reconciliation date to the 1st of the next month. This way, if any changes were paid to past invoices, they would appear as invoice reversals on the reports for this month which would allow the bookkeeper to capture and understand the changes that were made between periods.

A friendly reminder that selecting a reconciliation date does not “lock” invoices from before this period from being modified.

Rather, it acts more as an “alert” system so that any invoices from before this period will have any changes made tracked as a reversal in the present reporting for your reference.

Example Reconciliation Date Scenarios

Don’t forget to set the Sales Report to be sorted by Invoice Date!

Scenario 1: No Reconciliation Date Set

For this scenario, there is currently no reconciliation date set under the clinic’s Settings > Reconciliation Date area. Again, this is Jane’s default setting if this area has never been visited, or we have chosen to clear the reconciliation date.

Imagine we invoiced a client for a session on September 9th for $100. We remember the next day that we had forgotten to add a Friends and Family Discount of 15% to their invoice, which would have adjusted their final invoice to $85 instead.

Here is a snapshot of what the Sales Report entry would look like for September 9th.

Since there is no reconciliation date set, regardless of when we choose to add this discount, Jane will update the original line item in the Sales report to reflect the new invoice amount.

Jane does not record that a change had been made to the original invoice of $100 in the Sales Report. Instead, she will just show the updated invoice amount of $85.

Scenario 2: Reconciliation Date Set, Change Made to Invoice Prior to Set Date

In this scenario, we have set a reconciliation date of September 10th and are making changes to that same appointment from September 9th. In other words, the invoice that we are modifying falls on a date prior to the reconciliation date.

Initially, the line item in the September 9th Sales Report will appear the same:

If we were then to add the Family and Friends Discount to this appointment, Jane would (1) indicate that the original invoice of $100 was reversed and (2) negated by a negative line item of the same value (-$100).

A new invoice reflecting the adjusted value ($85) would then be generated for that session. It would share the same Purchase Date as the original appointment (September 9th), but the Invoice Date would reflect the date the change was made (September 10th).

Scenario 3: Reconciliation Date Set, Change Made to Invoice On or After Set Date

Finally, let’s imagine the same scenario, but instead our reconciliation date was set to September 1st. As a result, our September 9th appointment would fall after this date. Since any invoices generated on or after the reconciliation date will not incur invoice reversals, we can expect the Sales Report behaviour to be identical to Scenario #1— Jane will display the most updated invoice, with no reversals.

We hope that this is helpful! Don’t hesitate to reach out to us at [email protected] if you have any further questions about navigating invoice reversals. We’d be happy to guide you in the right direction :)

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