This guide provides an overview of how client credits are managed across the Evolution Platform, encompassing both Xero Credit Balances and Retail Store Credits. Understanding these distinct credit types and their management processes is crucial for maintaining accurate financial records, ensuring seamless customer service, and preventing discrepancies in your business operations. Proper credit management safeguards your revenue and enhances customer satisfaction by accurately tracking and applying funds owed to clients.

Overview

The Evolution Platform integrates several core systems, and a clear understanding of how data flows (or doesn't flow) between them is critical for managing client credits effectively. Specifically, client credits are handled differently in Xero (our central accounting system) and LightSpeed (our retail Point of Sale system). This distinction means that a client's credit in Xero will not automatically appear in LightSpeed or Vital, and vice-versa for LightSpeed retail credits.

To ensure financial accuracy, streamline customer service, and adhere to the "one Poolwerx Way" for consistent operations, it's vital to:

System Specificity

• Xero Credit Balances are exclusively managed and applied within Xero, typically arising from credits, prepayments or overpayments on service invoices. 
• Retail Store Credits are issued and redeemed solely within LightSpeed for retail purchases.

Understand Data Flow

• While LightSpeed summarises and posts retail credit liabilities to Xero for accounting purposes, these are not linked to individual client accounts in Xero. There is no automated sync of client-specific credit balances between Xero, LightSpeed, or your field management system.

Visibility

To bridge these gaps, particularly for Xero credits, we recommend you maintain a separate a shared Google Sheet and utilise client tagging and notes in Vital. This ensures all relevant staff, from schedulers to retail staff, are aware of existing credits, preventing billing errors and enhancing client satisfaction.

Adhering to these principles is paramount for preventing data inconsistencies, minimising lost revenue, and ensuring your financial records accurately reflect all client transactions and liabilities.

Managing Credit Balances (Xero)

Xero Credit Balances are unapplied credits, payments or overpayments that reside exclusively within a client's account in Xero. These typically arise when a payment is received that exceeds an invoice amount, or a payment is made without a corresponding invoice in advance. Due to the lack of direct synchronisation with other systems like LightSpeed or Vital, we recommend that these credits have a specific manual tracking and communication process to ensure they are visible to relevant staff and correctly applied. They can only be applied to invoices within Xero.

This tracking and communication process would involve maintaining a live, shared Google Sheet to track credit details, and utilising client tagging and notes within Vital to alert technicians and schedulers.

For detailed instructions, refer to the guide: Managing Xero Credit Balances

Managing Retail Store Credits (LightSpeed)

Retail Store Credits are issued and managed solely within the LightSpeed Point of Sale (POS) system. These credits are typically given for client returns, exchanges, or as part of specific retail promotions. While the overall liability for these credits is summarised and posted to Xero for accounting purposes, the individual client-specific credit balance remains entirely within LightSpeed and cannot be applied to invoices in Xero or Vital. They can only be applied within LightSpeed.

This process involves issuing the credit correctly in LightSpeed and redeeming it during a future retail transaction. Understanding how LightSpeed communicates summarised financial data to Xero is also key for overall financial reconciliation.

For detailed instructions refer to the guide: Managing Retail Store Credits in LightSpeed

Key Considerations & Best Practices

• Regularly reconcile your manual Google Sheet for Xero credits with actual balances in Xero.
• Ensure all staff members, particularly those involved in invoicing, payments, and client communication, are aware of the differing nature and management of Xero and LightSpeed credits.
• Establish a clear protocol for who is responsible for applying Xero credits in Xero and how the field team is notified, ensuring the "One Poolwerx Way" for Credit Application.
• Provide ongoing training to staff on the nuances of each credit type and the associated processes.
• Maintain a clear audit trail for all credit adjustments and applications in both Xero and LightSpeed.