Billing Reconciliation


				

Contents

Overview

This document is designed to give you a detailed understanding of the steps required to reconcile your billing to your billing deposits, including which reports to run, what numbers to look for in each report, and some basic troubleshooting options should the numbers not balance as expected.

Important Terminology

There is specific terminology as it relates to MosoMRM that needs to be clarified so this process can be understood effectively.

It is IMPERATIVE that you familiarize yourself with these terms so that they are properly used to minimize confusion.

Batch

A Batch is a group of billing payment transactions. (NOTE: Currently, you can have up to 1,000 payments in a single batch)

Invoice vs. Payment

This is very important...

Billing is the automated process of creating invoices and attempting payments against open invoices...It is NOT a synonym for the amount that you "billed your Members" over that given time period. It is vital that this term be used in the proper context...

The billing process includes BOTH invoicing and payments.

An Invoice is a document that itemizes a transaction of goods and services between a buyer and a seller. The invoice establishes an obligation on the part of the buyer to pay the agreed upon amount for these services, creating an account receivable.

A "Past Due" invoice is an invoice that was previously created but is late for payment during the specified time period.


A Payment is a transaction against an invoice. A "New Payment" is the first attempt to collect on that invoice.

An open invoice is an invoice against which a payment of any sort has yet to be applied and thus, is still outstanding.

Amount Invoiced vs. Amount Billed

These terms are often used interchangeably, but the preferred and more accurate term is Amount Invoice i.e. "I INVOICED my Members..." in lieu of "I billed" those same Members.

Amount Invoiced represents the total amount you invoiced your Members on a particular date for a given billing period. For example, if a member is to be "billed" on the 1st of the Month, an invoice is generated on the first day of the month, crating an expectation of payment by the Member at that point.

MosoMRM vs. MosoPay

MosoMRM refers to your actual application and the invoices and payments generated within the application.

MosoPay is the billing engine that processes all of the transactions and batches and deposits your money into your bank account.

While the systems are fully integrated, the steps in this process are ultimately how the two reconcile your numbers!!!

New vs. Retry vs. Resubmit

  • New - A "New" payment is the processing of an invoice for the first time in the process.
  • Retry - A "Retry" is the processing of the same payment through the Credit Card Automatic Updater (CAU) that runs in MosoPay. (NOTE: You will also see this referred to as the Credit Card Automatic Update Service (CCAUS)).
  • Resubmitt - A "Resubmit" is an attempt to collect a payment on an Invoice, which has previously failed.

On Account Payment

A payment of an invoice that was sold in the past.

An "on account" purchase is one in which the items or services are purchased on credit with a deferral of the payment to a later date.

The MosoMRM reports refer to the payments applied to these deferred invoices.

Reconciling Billing

The billing reconciliation process is a multi-step process that requires comprehension of the billing process itself in order to understand the amount of money that you should have remitted i.e in your deposit. This will document will describe each step of the process so you can understand how the numbers you see impact the final remitted amount.

Step 1 – Determine the Amount Submitted for Processing

The goal of this step is to understand what was actually submitted to MosoPay for payment processing.

Report

The report to run for this step is the Post-Billing Submitted report. This report is located in Data Analytics in the Billing folder.

Filter Options

While you have several filter options, the Date Criteria is the most important selection. This will typically be monthly or reflect the billing period that you are attempting to reconcile.

The report can be grouped in any manner you would like, but regardless of your selections, it will be first grouped by Business Unit. (Default Groupings: Item Category and Item)

In the end, the Grand Total is the only important figure!

Results

Condition yourself to review the results (columns) in the following order:

  • New Payments Submitted - As noted above, a "New" Payment is one that is being submitted for the first time ($45,736.10).
  • On Account Payments Submitted - An On Account invoice is an invoice that was finalized in the past but the payment is deferred to the scheduled billing day. This would be an invoice sold outside of the date range of our report, but had a payment that was due within the date range of our report ($10,276.77).
  • Past Due Payments - Past Due payments are payments that you are retrying from a previous invoice. Depending on your billing schedule, this number might be significant or non-existent ($11,289.21).

New Payments Submitted + On Account Payments Submitted + New Payments Submitted =
Total Payments Submitted

In the following example, $50,468.50 of invoices were created during this date range, with $67,302.08 of payments created and submitted for processing.

The Post Billing Submitted report.



Step 2 – Determining the Approved Amount

In Step 1, you determined the total amount submitted to MosoPay. In the current example, $67,302.08 of payments were submitted for processing. This step simply compares the total amount of Approved Payments i.e. how much was successfully processed by MosoPay, to the total amount of Declined Payments.

Report

The report to run for this step is the Post-Billing Results report. This report is located in Data Analytics in the Billing folder.

Filter Options

While you have several filter options, the Date Criteria is the most important selection. This will typically be monthly or reflect the billing period that you are attempting to reconcile.

The report can be grouped in any manner you would like, but regardless of your selections, it will be first grouped by Business Unit. (Default Groupings: Item Category and Item)

As with the Post Billing - Detail, the Grand Total of Approved and Declined Payments are the only important figures!

Results

In the example, $65,766.03 was approved and $1536.05 was declined. This report makes it very easy to see the performance of each payment type of payment. In this report you can see decline Percentages for each payment type. If a large amount of past due payments were submitted, it’s reasonable to expect that the decline percentage will be higher since these payments have previously been declined.

Running the Post billing – Results report, by default, will give you the complete performance of a Batch i.e. these are the final results of that Batch.

The Post Billing Results report.

(NOTE: For a majority of Motionsoft customers, each Batch goes through the the Credit Card Automatic Updater (CAU), which updates any credit card that expires or is replaced, retrys payments, and resubmits declines.

Step 3 – Determining the Remitted Amount

Before attempting Step 3, we highly recommend you have a concept of how the CAU works.

At the end of Step 2, you had $$65,766.03 of Approved Payments and $1536.05 of Declined Payments. These figures can easily be viewed in the Post-Billing Results report. This last step gives you the same information, but breaks it down by Batch and determines how much money will be deposited into your bank account.


There are two (2) ways to reconcile back to the actual deposit:

  1. Start in MosoMRM and verify you been credited with the approved amount for that deposit i.e. work toward the deposit amount. (RECOMMENDED)
  2. Start with the deposit amount and figure how you came to that figure i.e work backwards from the deposit amount.

A Batch is simply a group of payments that are lumped together (NOTE: Currently, you can have up to 1,000 payments in one batch). In the screen shots below, you will see that there have been 1,027 payments making up the $65,376.03 that was submitted to MosoPay for processing, resulting in 28 batches.

Reports

The report to run for this step is the Billing Payment Batches report. This report is located in Data Analytics in the Billing folder. This report takes the Post Billing – Results report and generates the results into Batches.

After you complete the Batch processing, you can compare these numbers to the actual deposits in the Billing Reconciliation report (Financial folder in Data Analytics) for the same date range and Business Unit (see below).

Filter Options

While you have several filter options, the Date Criteria is the most important selection. This will typically be monthly or reflect the billing period that you are attempting to reconcile.

The report can be grouped in any manner you would like, but regardless of your selections, it will be grouped first by Business Unit.

You have two (2) Grouping options for this report:

  • Summary (default, optional)
    The Post Billing Results report Summary view.
  • Detail (REQUIRED...see Results section below)
    The Post Billing Results report Detail view.

As with the previous reports, the Totals (Submitted Amount) for each Batch are the most important figures, however, there is an additional drill-down option to view specific Batch Details.

Results

In order to properly reconcile, you MUST use the Detail grouping option for this report. This breaks down the performance of the "Original" processing attempt as well as any "retry" attempts through CAU, if necessary. It also gives you a clearer picture of where your money is because oftentimes, the deposits will be on a different day than the Batch processing. This screen shot highlights the labels, including the Submitted amount for each batch.

Original and Retry Batch labels.

(NOTE: The terms "Original" and "Retry" should be consistently used because that reflects the terminology used in this report, the Billing Reconciliation report, and in MosoPay).


The following series of screen shots illustrate how your deposits for BOTH Batches (Original and Retry) are reconciled.

The Billing Payment Batches report lists the Batches in numerical order with the Original batch followed by the Retry of that Batch if necessary. Each Batch is broken down by Tender Type with the Submitted Count (number of transactions in the Batch) and Amount.

The Post Billing Results report Detail view.


The Submitted Count value is a link to the Batch Detail drill-down which lists each transaction that used that Payment Type (Tender) and associated Response Message, which is the code that was returned from MosoPay e.g. Approved, Declined, Invalid card number, Hold-Pick up card, etc.

Batch Detail drill-down.

(NOTE: This message may be blank. Also, this message is different than the Response Code that was returned from the credit card processor. However, a blank message is a symptom of a processing error.)


The amounts on the Billing Payment Batches report can be compared to the amounts on the Billing Reconciliation report.

The Original and Retry Amounts on the Billing Payment Batches report should EQUAL the Submitted Amount on the Billing Reconciliation report.


  1. Batch # 437951-Original has a total of $652.50
    Batch # 437951 (Original and Retry).
  2. Approved = $607.50
    Batch Deposit Details drill-down for Original Batch processing.
  3. Retry = $45.00
    Batch Deposit Details drill-down for Retry Batch processing.
  4. $607.50 + $45 = $652.50

Tips & FAQs

  • Has the billing process completed? If you are running these reports the day after the Billing Date, the CAU is still in progress.
  • The Batches from the Billing Payment Batches report does not match my MosoPay Statement.
    • It’s possible that one Batch number will appear on multiple statements. This is primarily because AMEX or ACH may be submitted separately, usually later, than VISA, MC, and DISC but they all will share the same Batch Number. To troubleshoot this...Look at the previous or next statement for the remainder of the Batch.