Reconcile Payments

Reconcile Payments Skill

Assist with invoice and payment reconciliation for Talosix. Ensure financial records are accurate, discrepancies are flagged and resolved, and audit trail requirements are maintained.

When to Use

• Monthly or periodic payment reconciliation
• When invoices need to be matched against payments received
• When discrepancies or anomalies are detected in financial records
• When preparing financial data for audit or compliance review
• When generating reconciliation reports

Reconciliation Process

Step 1: Data Collection

Gather the following data sources for the reconciliation period:

• Invoices issued (from billing system)
• Payments received (from bank/payment processor)
• Customer contracts and pricing agreements
• Credit notes and adjustments
• Previous period carryforward balances

Step 2: Invoice-to-Payment Matching

Match payments to invoices using these criteria:

## Matching Rules (in priority order)
1. Exact match: Payment amount = Invoice amount, same customer
2. Reference match: Payment reference contains invoice number
3. Customer match: Payment from known customer, amount within tolerance
4. Partial match: Payment covers portion of invoice (flag for review)
5. Overpayment: Payment exceeds invoice amount (flag for review)
6. Unmatched: No matching invoice found (flag for investigation)

Step 3: Discrepancy Identification

Flag the following anomalies:

Step 4: Reconciliation Report

Generate a reconciliation report with the following structure:

# Payment Reconciliation Report
Period: <start date> to <end date>
Prepared by: <name>
Date: <date>

## Summary
| Metric | Amount | Count |
|--------|--------|-------|
| Total invoiced | $<amount> | <count> |
| Total payments received | $<amount> | <count> |
| Matched (exact) | $<amount> | <count> |
| Matched (with variance) | $<amount> | <count> |
| Unmatched invoices | $<amount> | <count> |
| Unmatched payments | $<amount> | <count> |
| Net variance | $<amount> | - |

## Aged Receivables
| Aging Bucket | Amount | Count |
|-------------|--------|-------|
| Current (0-30 days) | $<amount> | <count> |
| 31-60 days | $<amount> | <count> |
| 61-90 days | $<amount> | <count> |
| 91+ days | $<amount> | <count> |

## Discrepancies Requiring Resolution
| # | Type | Customer | Invoice | Amount | Variance | Status |
|---|------|----------|---------|--------|----------|--------|
| 1 | <type> | <customer> | <inv#> | <amount> | <variance> | Open |

## Actions Taken
| # | Action | Responsible | Due Date | Status |
|---|--------|-------------|----------|--------|
| 1 | <action> | <name> | <date> | <status> |

## Notes
<any explanatory notes, FX rate used, special circumstances>

Step 5: Resolution Tracking

For each discrepancy, track resolution:

## Discrepancy Resolution Log
| Discrepancy # | Identified | Description | Root Cause | Resolution | Resolved Date | Resolved By |
|---------------|-----------|-------------|------------|------------|---------------|-------------|
| 1 | <date> | <description> | <root cause> | <resolution> | <date> | <name> |

Clinical Trial EDC Billing Context

Talosix billing has domain-specific considerations:

Revenue Models

• Per-study licensing: Fixed fee per study setup
• Per-site fees: Monthly fee per active clinical site
• Per-subject fees: Fee per enrolled or randomized subject
• Professional services: Implementation, configuration, training hours
• Support tiers: Standard, premium, enterprise SLA-based pricing

Reconciliation Considerations

• Study lifecycle: Invoice adjustments when studies close early or extend
• Site activation timing: Pro-rated billing for mid-month activations/deactivations
• Subject milestones: Verify subject counts against EDC system data
• Change orders: Scope changes during study execution that modify pricing
• Multi-currency: Global trials often involve multiple currencies across regions

Contract Verification

When reconciling, cross-check against:

• Master Service Agreement (MSA) terms
• Statement of Work (SOW) for each study
• Change orders and amendments
• Agreed payment terms (Net 30, Net 45, etc.)
• Volume discount thresholds

Audit Trail Documentation

All reconciliation activities must maintain audit trails:

1. Record every action: Who did what, when, and why
2. Preserve source data: Original records before any adjustments
3. Document adjustments: Every adjustment with justification and approval
4. Retain evidence: Supporting documents for discrepancy resolutions
5. Version control: Track changes to reconciliation reports

Audit-Ready Format

## Audit Trail Entry
Date/Time: <timestamp>
Action: <description of action taken>
Performed by: <name>
Reason: <justification>
Supporting evidence: <reference to document/email/approval>
Before state: <original values>
After state: <adjusted values>
Approved by: <name, if applicable>

Compliance Reporting

SOX Compliance Considerations

• Segregation of duties: Different people for invoice creation, payment receipt, and reconciliation
• Timely reconciliation: Complete within defined period after month-end
• Management review: Reconciliation reviewed and approved by finance manager
• Exception documentation: All exceptions documented with resolution

Revenue Recognition (ASC 606)

• Verify revenue recognition timing against contract performance obligations
• Multi-element arrangements: Allocate revenue across deliverables
• Variable consideration: Subject-based fees may require estimation
• Contract modifications: Account for scope changes properly

Output Format

When performing reconciliation, always produce:

1. A reconciliation summary with key metrics
2. A list of discrepancies with severity ratings
3. Recommended actions for each discrepancy
4. An audit trail of the reconciliation process
5. Aged receivables analysis if applicable