The first invoice of the month, which is used to pre-fund your payroll, is based on estimated costs for the month. While we do all we can to estimate correctly, there are several factors that can cause discrepancies like employee expenses, incentives, and benefits.
At the end of each billing period, we compare the actual costs against the Pre-funding Invoice amount; depending on the outcome, we take one of the following steps:
Issue a Reconciliation Invoice
If your Pre-funding Invoice amount was lower than the actual costs incurred during that billing period, we will issue a Reconciliation Invoice for you to pay the difference.
Issue a Reconciliation Credit
If your Pre-funding Invoice amount was higher than the actual costs incurred during that billing period, we will issue a Reconciliation Credit; this Credit Note will be applied to the next invoice when applicable.
If your Pre-funding Invoice amount exactly matches the expenses incurred during that billing period, we will not issue anything else and no further action is required on your end.
All of your invoices and credit notes can be found under Service invoices in the Payments tab.
Note: Prior to May 2023, if your actual invoice was less than the Pre-Funding Invoice, a Reconciliation Invoice with a negative balance was issued; therefore, you may see those in the history of your Service invoices.
See also: Reconciliation invoice breakdown report