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.
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:
- The payment is authorised.
- The payment is captured.
SentForSettlejournal entry is created.
- If the shopper chooses to pay in installments, a
SettledInInstallmentsjournal entry is created.
Regardless of the number of installments the total payable amount is split up into, a payment can have only one
SentForSettlejournal entry is balanced against
This occurs as soon as we receive information about the installment due dates.
The standard time frame for this operation is usually D+1.
OpenInstallmentjournal entry is created for each installment referring to the payment.
- When an installment is settled, a
SettledInstallmentjournal entry is created.
journal entry is balanced against its corresponding
Apart from the authorisation and capture steps, this flow repeats for each installment.