Finance Integration Strategy
SupportAbility is designed to export Direct Invoice Batches for an organisation's finance system. This export must be downloaded from SupportAbility and then uploaded into the Finance system. Your Finance system is then responsible for distributing these Invoices and managing the accounts payable, receivable and reconciliation processes.
Audience: Finance Team
To determine the best approach regarding Finance integration for your organisation, the following should also be considered:
- the required financial analytics your organisation needs,
- understanding how debtors in SupportAbility work,
- configuration must be completed to import invoice data into your Finance system,
- responsibilities and workflows for generating Internal [Direct] Invoice batches,
- responsibilities and workflows for generating NDIS bulk payment requests,
- considerations for NDIS funding transitions, and
- understanding how your
organisationchooses to reconcile and remit invoices.
Invoicing Self Managed or Plan Managed Clients under NDIS
When Services are delivered to Clients who are Self Managing their NDIS Funding, or have a registered Plan Manager managing their Funding, the Invoices generated for Supports delivered are addressed to these debtors accordingly, provided the Client's NDIS Direct Client Funding record has been set up to reflect this. The 'Financial Plan Manager (FPM)' section of the Adding an NDIS Direct Client Funding record article linked below outlines how to configure this.
Generally speaking, providers generate Invoices for Clients, Nominees and Plan Managers in a Direct Invoice Batch to align with the standard billing cycle e.g. fortnightly and monthly:
Please see the Generating a Direct Invoice Batch article linked below for more information regarding this process.
Invoices for the National Disability Insurance Agency (NDIA)
Where a Client's NDIS Funding is fully, or partially, Agency managed, once the Activity Sign Off is performed, the relevant NDIS Allocations are available for inclusion in a Direct Bulk Payment Request (BPR).
Once a Direct BPR has been generated, a Direct Invoice Batch may then be generated for NDIA Invoices:
When a Direct Invoice Batch is generated for NDIA Invoices, these Invoices are separated per Client, or Client Funding record (when more than one NDIS Direct Client Funding record has been created per Client) e.g:
The reason SupportAbility generates separate invoices for the NDIA for each Client is due to many sophisticated Finance systems having the ability to track not only the 'Bill to' customer (Debtor), but also the 'Sell to' customer (Client).
We acknowledge that Finance systems for small business e.g. MYOB, Xero etc. do not have any facility to record 'Sell to' customer information. The information imported from SupportAbility therefore presents as a significant number of individual Invoices for a single debtor, being the NDIA with limited ability to differentiate between each other given the only Client identifier is the Client Name and NDIS Number which is only included as text.
There are some upcoming changes expected in the upgrade to v7 of SupportAbility regarding the Invoice Format options for NDIA Invoices, and these options have been outlined further in the Enhancements to Direct Bulk Payment Requests (BPRs) article linked below for reference.
With this in mind, there are some important considerations when deciding how invoices for the NDIA are best processed for your organisation.
Immediate invoice import
Invoice data is imported into the finance system immediately following the creation of a Direct Invoice Batch from the BPR in SupportAbility.
If there are any Rejections in the Bulk Payment Results File, these will need to be addressed in the Finance system and may also require amendment in SupportAbility which will not be available until the upgrade to SupportAbility v7.
Amending the invoice data in SupportAbility to account for Rejections in the Bulk Payment Request is vital to ensure the accuracy of Clients NDIS Funding information is maintained. If this is not updated, this will result in incorrect Utilisation, Client Funding Statements and other Financial Reports.
Deferred invoice import
Given that there is no guarantee that every Invoice Item within the Bulk Payment Request will be accepted, many providers choose to hold off on uploading Invoice Batches generated for the NDIA into their Finance system.
Invoices are then imported following review of the claim status information provided by the myplace provider portal upon submission of the Bulk Payment Request.
This allows for any unsuccessful claims to be manually addressed in your organisation's finance system. This method has the benefit of correct data in your organisation's finance system, however, the data will continue to be incorrect in SupportAbility.
Custom invoice or journal entry created
Due to the challenges associated with the aforementioned methods, many providers choose not to import Invoice Batches for the NDIA into the Finance system upon creation of the Invoice Batch either immediately or deferred (as outlined above).
Choosing this approach, a custom invoice or journal entry is created directly in the finance system once remittance advice has been received from the NDIA detailing the total amount paid. This is a much more efficient way to manage the accounts receivable process for invoices for the NDIA. This will mean, however, that your finance system only reflects the total amount successfully claimed versus the original Bulk Payment Request total.
Each organisation has their own Finance tools, goals and resources. The chosen strategy for processing Invoice Batches for the NDIA will therefore need to account for each of these factors. However, the upcoming Improvements to Agency Managed Supports expected in the upcoming upgrade to SupportAbility v7, will begin to address some of these issues. For more information, please review the Enhancements to Direct Bulk Payment Requests (BPRs) article linked below for reference.