Settlement reconciliation

Reconciliation is a crucial step in a transaction. When you reconcile a payment, you verify that the authorised and captured amounts for the payment match the corresponding settlement.

Reports help you keep track of the process. You can follow the transaction progress by checking journal entries and payment statuses.

Settlement journal entries

The reconciliation flow for a transaction where the merchant collects the shopper's payments in a set number of installments follows these steps:

  1. The payment is authorised.
  2. The payment is captured.
  3. SentForSettle journal entry is created.
  4. If the shopper chooses to pay in installments, a SettledInInstallments journal entry is created.
    Regardless of the number of installments the total payable amount is split up into, a payment can have only one SettledInInstallments journal entry.
  5. The SentForSettle journal entry is balanced against SettledInInstallments.
    This occurs as soon as we receive information about the installment due dates.
    The standard time frame for this operation is usually D+1.
  6. An OpenInstallment journal entry is created for each installment referring to the payment.
  7. When an installment is settled, a SettledInstallment journal entry is created.
  8. The OpenInstallment journal entry is balanced against its corresponding SettledInstallment entry.

Apart from the authorisation and capture steps, this flow repeats for each installment.