When we talk about reconciliation, what does that mean when it comes to Flywire? Why is it important to regularly reconcile?
Reconciliation is the act of comparing financials between two or more systems to ensure they are both matching. The two processes for reconciling are:
- Bank Deposit Reconciliation: Matching Flywire payment totals with your bank deposits
- Posting File Reconciliation: Matching Flywire payment totals with the posting files from the EHR or host system
How often should you be reconciling?
While every provider’s needs are different, generally speaking, most providers reconcile either daily, every other day, or every week. While you can reconcile as much or as little as you would like to, it is important to note that there are advantages to reconciling more frequently because it allows you to identify and fix potential posting issues quicker.
At the end of the day, it is a universal truth that every provider performs a monthly reconciliation in order to close out each month.
Interested in learning more? Read the article below and check out this video to learn how to reconcile your Flywire transactions with your bank deposits and also with your EHR posting file!
Feel free to jump around in the chapters by clicking the Chapters icon in the play bar!
Bank Deposit Reconciliation
- What is it?
- Comparing settled payments made in Flywire to the bank deposit
- Comparing settled payments made in Flywire to the bank deposit
- Who is reconciling bank deposits?
- Treasury Teams or Cash Posting teams OR
- Other related teams who have access to view bank deposits
- Which Flywire Reports to use?
- Payments Detailed by Encounter
- Payments Summary by Sub Department and Facility
- Tips
- Detailed reports can be exported to Excel for further analysis
- Flywire recommends to reconcile on a daily basis vs weekly or monthly
Bank Deposit Reconciliation - Summary Steps
Typically, credit card deposits will reflect payments made in Flywire that settled 1-2 days prior, depending on the configuration of your credit card processor.
- Use: Payments Summary by Sub Department and Facility Report
- Modify the following filters:
- Start Date and End Date: 1-2 days prior to the date of deposit you are trying to match.
- Filter By: ‘Settlement Date’
- Practice: Filter to a specific practice/provider that matches the MID you are trying to reconcile to the bank.
- Run the report and compare the results to your deposit amount.
- The report total for a given payment method and facility should match your bank deposit.
Here's an example of the Payments Summary by Sub Department and Facility report:
Bank Deposit Reconciliation - Detailed Steps
Typically, credit card deposits will reflect payments made in Flywire that settled 1-2 days prior, depending on the configuration of your credit card processor.
- Use: Payments Detailed by Encounter Report
- Modify the following filters:
- Start Date and End Date: 1-2 days prior to the date of deposit you are trying to match.
- NOTE: The time filter can be left as is (00:00) since transactions will settle at a specific time of day, you only need to select the calendar day of settlement.
- Filter By: ‘Settlement Date’
- Payment Method: Credit Card
- Run the report and compare the results to your deposit amount.
- The report total should match your bank deposit
- The details can be exported to Excel for comparison purposes
- Start Date and End Date: 1-2 days prior to the date of deposit you are trying to match.
Here's an example of the Payments Detailed by Encounter report:
Posting File Reconciliation
- What is it?
- Comparing payments made in Flywire to payments posted in the host system
- Comparing payments made in Flywire to payments posted in the host system
- Who is generally reconciling?
- SMEs that are familiar with the posting process and/or work the posting exceptions for the host system
- SMEs that are familiar with the posting process and/or work the posting exceptions for the host system
- Which Flywire Reports to use?
- Payments Detailed by Encounter
- Payments Detailed by Encounter
- Tips
- Detailed reports can be exported to Excel for further analysis
- Flywire recommends to reconcile on a daily basis vs weekly or monthly
How does the Data Flow from Flywire to your EHR?
Below is a data flow diagram to help explain the posting file process from Flywire right to the provider EHR. This diagram illustrates how a posting file or a payment transaction from Flywire gets posted into the EHR.
Once a payment transaction is recorded in Flywire, at the end of each day, Flywire automatically generates a posting file to send back to the EHR in the form of a flat file or a text file.
That EHR will already have reports that are available to the cash posting team, or whichever team is in charge of reconciling. From these EHR reports the cash posting team is able to see the payments that have been posted to the guarantor account or onto the visit in the EHR.
At that point the cash posting team members are able to work on the exception process. This involves identifying any transactions that did not post on the guarantor account like they should have and then troubleshooting why they didn’t post correctly. During this process they can also choose to manually post any payments that came over as exceptions.
Flywire’s Staff Experience reports help with troubleshooting any exceptions that occurred during the file posting process. The cash posting team is able to compare their HR reports with the Flywire reports on the transaction level to validate and also identify any anomalies between Flywire and their EHR.
Posting File Reconciliation - Detailed Steps
Flywire will post payments back to your host system on a daily basis. Typically, overnight all transactions from the previous period will be sent for posting, regardless of settlement status.
- Use: Payments Detailed by Encounter Report
- Modify the following filters:
- Start Date and End Date: 1 day prior to the date of posting you are trying to match.
- Start Date and End Date: 1 day prior to the date of posting you are trying to match.
- Run the report and compare the results to your EHR’s posting report
- Payments are posted at the Encounter level and should match 1:1 the automated posting file that was sent to your host system for posting.
- Other filters can be used if you want to focus on specific Payment Methods or Facilities (Practice).
Here's an example of the Payments Detailed by Encounter report:
We hope this helps you better understand the two processes and approaches to reconciling Flywire with your bank deposits and/or EHR. Go forth and RECONCILE!