What is included in the Reconciliation invoice?

Article author
Nneka
  • Updated

Invoice #1, which is used to pre-fund your payroll, is based on estimated costs for the month.

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.

While we do all we can to estimate the Payroll Pre-funding invoice amount is as close as possible to what the actual costs will be, there are several common factors that can cause discrepancies: employees onboarding or off-boarding during the month, changes in local regulations, benefits changes, and variability in leave/working hours for each employee. Many of these factors can’t be known until the exact time payroll is run.

See also: What do the different invoice items mean?

The Reconciliation invoice includes:

  • Base monthly salary
  • Employer monthly social contributions
  • On Payslip Benefits
  • Expenses
  • Incentives
  • Off Payslips costs
  • Other benefits
  • Management fee

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 issue a 0 total reconciliation invoice, and no further action is required on your end.

All of your invoices and credit notes can be found under Billing 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.

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