Reconciliation for Memberships

Modified on Wed, 22 Jan at 2:58 PM

The reconciliation process for memberships happens when a membership is purchased at one franchise but used at another. This feature is available only for accounts on the global database.

Things to know:

To activate the reconciliation feature, follow the steps provided here
The adjustment rate is the percentage of the service, product, or class value that should be transferred to the destination location from the location where the membership was originally purchased.
Source Location is the location where the membership was purchased
Destination Location is the location where the membership was redeemed/used
Membership Item Credits:
- Reconciliation for membership item credits can be based on the retail price of the service, product, or class at either the source or destination location, or it can be based on a fixed price specified in the membership template.
- If reconciliation is based on the fixed price set in the membership template, the feature is managed at the parent level for global memberships and at the child level for local memberships.
Membership Value Credits: Reconciliation for membership value credits will be based on the membership value credits spent at the destination location multiplied by the adjustment rate.
Reconciliation records are generated every time a ticket is closed, provided that reconciliation is active at that moment.

Content:

Reconciliation for Value Credits
Reconciliation for Item Credits: Based on the service, product, or class retail price from the location where the membership is being used
Reconciliation for Item Credits: Based on the service, product, or class retail price from the location where the membership was purchased
Reconciliation for Item Credits: Price Set on Membership Template

Reconciliation for Value Credits

Configuration

Reconciliation % of the price to transfer

20% of services
15% of products
10% of classes

If a client purchased a membership at Franchise 1- Location 1.1 and used value credits to pay for a service and product at Franchise 2 - Location 2.1:

The item was fully covered by value credits:

The service price on the ticket is $80, and the total amount was covered by the membership's value credit.
The product price on the ticket is $20 and the total amount was covered by the membership's value credit

Reconciliation Calculation

The percentage that will be transferred from location 1.1 to location 2.1 will be based on the portion of the value credit used:

Service - 20 % x $80 =$16

Product - 15 % x $20 = $3

Total to be transferred - $16 + $3 = $19

This information can be seen in the Reconciliation Detailed Report which can be accessed by going to Dashboard > Reports > Reconciliation Detailed Report.

The system will debit the location 1.1 account and credit the location 2.1 account

The item was partially covered by value credits:

The service price on the ticket is $80, but only $40 of the membership value credit was used.
The product price on the ticket is $20, but only $10 of the membership's value credit was used.

Reconciliation Calculation

The percentage that will be transferred from location 1.1 to location 2.1 will be based on the portion of the value credit used:

Service - 20 % x $40 =$8

Product - 15 % x $10 = $1.5

Total to be transferred - $8 + $1.5 = $9.5

This information can be seen in the Reconciliation Detailed Report which can be accessed by going to Dashboard > Reports > Reconciliation Detailed Report.

The system will debit the location 1.1 account and credit the location 2.1 account

Reconciliation: Based on the service, product, or class retail price from the location where the membership is being used

Configuration

Reconciliation % of the price to transfer

20% of services
15% of products
10% of classes
The "Use service/class/product price from location where membership is being used" checkbox is checked

Retail Price on Franchise 1- Location 1.1

Product - $60
Service - $20
Class - $50

Retail Price on Franchise 2 - Location 2.1

Product - $34
Service - $18
Class - $65

If a client purchased a membership at Franchise 1- Location 1.1 but used it to pay for a class, service, and product at Franchise 2 - Location 2.1:

The price for the service on the ticket is $0 since the service is included in the membership
The price for the product on the ticket is $0 since the product is included in the membership
The price for the class on the ticket is $0 since the class is included in the membership

Reconciliation Calculation

The percentage that will be transferred from location 1.1 to location 2.1 will be based on the retail service, product, and class price at location 2.1:

Service - 20 % x $18 =$3.60

Product - 15 % x $34 = $5.10

Class - 10 % x $65 = $6.50

Total to be transferred - $3.60 + $5.10 + $6.50 = $15.20

This information can be seen in the Reconciliation Detailed Report which can be accessed by going to Dashboard > Reports > Reconciliation Detailed Report.

The system will debit the location 1.1 account and credit the location 2.1 account.

Reconciliation: Based on the service, product, or class retail price from the location where the membership was purchased

Configuration

Reconciliation % of the price to transfer

% of the price to transfer

20% of services
15% of products
10% of classes
The "Use service/class/product price from location where membership is being used" checkbox is unchecked

Retail Price on Franchise 1- Location 1.1

Product - $60
Service - $20
Class - $50

Retail Price on Franchise 2 - Location 2.1

Product - $34
Service - $18
Class - $65

If a client purchased a membership at Franchise 1- Location 1.1 but used it to pay for a class, service, and product at Franchise 2 - Location 2.1:

The price for the service on the ticket is $0 since the service is included in the membership
The price for the product on the ticket is $0 since the product is included in the membership
The price for the class on the ticket is $0 since the class is included in the membership

Reconciliation Calculation

The percentage that will be transferred from location 1.1 to location 2.1 will be based on the base service, product, and class price at location 1.1:

Service - 20 % x $20 =$4

Product - 15 % x $60 = $9

Class - 10 % x $50= $5

Total to be transferred - $4 + $9 + $5 = $18

This information can be seen in the Reconciliation Detailed Report which can be accessed by going to Dashboard > Reports > Reconciliation Detailed Report.

The system will debit the location 1.1 account and credit the location 2.1 account.

Reconciliation for Item Credits: Price Set on Membership Template

You can set a specific reconciliation price for item credits in the membership template. For franchise businesses with global memberships, this price is set at the parent level for global memberships and at the child level for local memberships.

To do this:

Navigate to Business Setup > Memberships
Create a new membership using the "Add New Membership" link or edit an existing membership using the edit icon
On the membership credit tab from the membership template, there will be an additional field called 'Reconciliation Prices' in the item credit section.
Click the "+ Add Reconciliation Price for Location(s)" option to add a price
Enter the price you wish to be used to calculate the reconciliation for your item credits
Click the 'Publish Membership' button to save the changes

Scenario

Reconciliation % of the price to transfer

% of the price to transfer

20% of services
15% of products
10% of classes

Reconciliation Price for Item Credits

$60 for all locations

Retail Price on Franchise 1- Main Street

Product - $70
Service - $100
Class - $150

Retail Price on Franchise 2 - Main

Product - $40
Service - $110
Class - $130

If a client purchased a membership at Franchise 1 - Main Street but used it to pay for a class, service, and product at Franchise 2 - Main:

The price for the service on the ticket is $0 since the service is included in the membership
The price for the product on the ticket is $0 since the product is included in the membership
The price for the class on the ticket is $0 since the class is included in the membership

Reconciliation Calculation

The percentage that will be transferred from Franchise 1 to Franchise 2 will be based on the reconciliation price set on the membership template:

Service - 20 % x $60 =$12

Product - 15 % x $60 = $9

Class - 10 % x $60= $6

Total to be transferred - $12 + $9 + $6 = $27

This information can be seen in the Reconciliation Detailed Report which can be accessed by going to Dashboard > Reports > Reconciliation Detailed Report.

The system will debit the Main location account and credit the Main Street location account.

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