Reconcile fees

Your balance platform incurs fees, such as fees for each payment, and fees for balance platform services such as payouts or KYC screening when onboarding balance platform users.

Adyen assesses and books fees to your balance platform accounts in the following ways:

• Payment fees that are assessed on a per-transaction basis (Interchange, Scheme fees, Markup, Commission) are deducted immediately when captured payment funds are booked to balance accounts. These fees are deducted from your liable balance account, or booked to a balance account of your user based on split instructions that you provide at payment or capture.
• Processing fees charged by Adyen are assessed as a total amount on a daily basis, and booked to your liable balance account.
• All other types of fee, as well as any volume-related adjustments to the above types of fee, are assessed during invoicing on a monthly basis. The overall adjustment resulting from this monthly invoicing is booked to your liable balance account.

To support reconciliation, Adyen provides fee data in the following reports:

• Balance Platform Accounting Report: provides data for the payment fees that are assessed on a per-transaction basis (Interchange, Scheme fees, Markup, Commission).
• Payment accounting report: provides the per-event breakdown of payment fees.
• Payment processing invoice: provides totals for all fees incurred during the month, and the total adjustment amount. Also referred to as the monthly invoice.
• Settlement details report: provides line items that help to tie the daily and monthly fee totals to corresponding bookings on the balance platform's liable balance account.

Reconcile total fees

In the example on this page, we follow a EUR 100 payment through its lifecycle. To show how the fee bookings in the Balance Platform Accounting Report relate back to events and fees also included in reports for your Adyen account, we track through three reports:

• Payment accounting report
• Settlement detail report
• Balance Platform Accounting Report

The EUR 100 payment is identified by the PSP reference F2FTV3THPB9Z2C33 and merchant reference UUID1.

Payment accounting report

In the Payment accounting report, note the following:

• At the Booking Date and time when the EUR 100 payment reaches the SentForSettle state, the per-transaction fees are confirmed. At this moment, these fees are distributed for booking to a balance platform balance account along with the payment funds.

• Throughout the day, the Processing fees accumulate as payment instructions are received. The Processing fee for this EUR 100 payment is included in the total amount for all payment instructions received on the same date. In this report snippet you can see a total of five received instructions, each with a EUR 0.10 Processing fee booked.

• The EUR 100 payment appears again in the Payment accounting report data at a later Booking Date and time, when it reaches the Settled state. This event, along with the Payable Batch number, helps to understand the timing behind the booking of Processing fees to your balance platform liable balance account.

This line item breakdown of all Processing fees in this report data is why you should use the Payment accounting report for full fee reconciliation.

Settlement detail report

Because the total daily Processing fees are booked separately from the per-transaction fees, the Settlement detail report data can help track the processing fees.

• The EUR 100 payment also appears in this report data when it reaches the Settled state, along with the per-transaction fees. You can ignore this event in this report data because the per-transaction fees are already found in the Payment accounting report and booked through to a platform balance account at this time.
• The total Processing fees amount of EUR 0.50 for all the payment instructions received on the same date as our example EUR 100 payment are reported as Type Fee in this report.
• Note the delay in Creation Date due to the daily assessment of the total Processing fees, the Modification Reference, and the Batch Number in the Settlement detail report. We will see this data again in the next section when we look at how fees are presented in the Balance Platform Accounting Report.

The Settlement detail report gives insight into the timing of booking Processing fees to the balance platform. This report also includes the overall monthly fee adjustments when they occur, which are reported as Type InvoiceDeduction in this report.

For these reasons, you can consider including Settlement detail report data for full fee reconciliation.

Balance Platform Accounting Report

In the Balance Platform Accounting Report, the columns Platform Payment Interchange, Platform Payment Scheme Fee, and Platform Payment Markup, or Platform Payment Commission show that in this example the per-transaction fees for the EUR 100 payment are directed to a dedicated balance platform fees BalanceAccount.

The Booking date and Value date for the fees booking is the same as for the payment funds (see Reconcile payments).

The total daily Processing fees are booked to the default liable BalanceAccount as Type fee as soon as they are assessed (daily in arrears). Note the Psp Modification Merchant Reference.

See also