Reconcile installment payments

When you reconcile an installment purchase, you verify that the authorised and captured amounts for each installment match the amount settled to your account.

Here we describe the:

• Reconciliation flow of an installment purchase.
• Reports that can be used to reconcile installment purchases.

Reconciling installments

When you make an installment purchase it is reconciled as follows: 

1. The purchase is authorised and an Authorised journal entry is created.
2. The payment for the purchase is captured and a SentForSettle journal entry is created.

3. A SettledInInstallments journal entry is created. 

   Regardless of the number of installments, there will only be one SettledInInstallments journal entry per installment purchase.

4. The SentForSettle journal entry is balanced against SettledInInstallments. This matches the SentForSettle amount with the SettledInInstallments amount.

   This happens on the next day, when we receive the installment due dates from the card scheme.

5. An OpenInstallment journal entry is created for each installment.
6. A SettledInstallment journal entry is created when an installment is settled.
7. The OpenInstallment journal entry is balanced against its corresponding SettledInstallment entry. 

Reconciling refunded installments

When an installment purchase is refunded, the reconciliation process is as follows:

1. The refund is authorised. 
2. The refund is captured.
3. A SentForRefund journal entry is created.

4. A RefundedInInstallments journal entry is created. 

   Regardless of the number of installments, there will only be one RefundedInInstallments journal entry per refunded installment purchase.

5. The SentForRefund journal entry is balanced against RefundedInInstallments. 

   This happens on the next day, when we receive the installment due dates from the card scheme.

6. An OpenInstallment journal entry is created for each installment.

7. A RefundedInstallment journal entry is created when an installment is refunded.
8. The OpenInstallment journal entry is balanced against its corresponding RefundedInstallment entry

Installment reports

You can find the following reports in your Customer Area. You can use these reports to track the status of installment payments, and reconcile them with your account:

• Monthly and Daily Finance reports: Summarizes installments that have been paid to your account.
• Settlement detail report: Details the specific installments that have been settled.
• Forecast report: Estimates the installments you are due to receive in the future.
• Payment Accounting Report: Details the installments that are due to be paid out for the month, as well as payments for other payment methods.

Monthly and Daily Finance in Installments reports

For a summary of the installments that have been paid to your account, use the following journal entries in the Monthly and Daily Finance in Installments reports:

• SettledInInstallments: Amount due to be settled from installments.
• RefundedInInstallments: Amount due to be refunded from installments.
• OpenInstallment: Installments that were open in this month or day.
• SettledInstallment: Amount that has been settled from installments.
• RefundedInstallment: Amount that has been refunded from installments.

For more information on this report, refer to our Monthly and Daily finance report documentation.

Settlement detail report

In Brazil, each installment payment is settled to your account separately. We recommend using the Settlement detail report to reconcile these payments. 

The following entries in the Settlement detail report can be used to track installments that have been credited to or debited from your account:

• SettledInstallment: Credit for an installment that was settled to your account.
• RefundedInstallment: Debit for a refunded installment.
• Chargeback: Debit for an installment that was reversed.

• SecondChargeback: Debit for the unsuccessful defense of an installment that was reversed.

  All future installments in this purchase will be suspended (SuspendInstallment).

• SuspendInstallment: Debit for an advanced installment that won't be settled due to a chargeback.

For more information on this report, refer to our Settlement detail report documentation.

Forecast report

The Forecast report provides an estimation of the installments you will receive in the future. The amounts provided in this report are net, and the dates indicate when you will receive the funds.

You can access Forecast reports in your Customer Area, under Finance > Forecast.

Payment accounting report

The Payment accounting report is where you can track the status of open installments. This can also be used for forecasting.

Use the following entries to track the status of an open installment:

• Payout Date: Date the installment is due to be paid to your account.

• Installments (PC): Amount that has been credited to the installments register. 

  If this amount is negative the open installment relates to a debit (refund).

• Installments: The number of the installment. For example, 2/6 would refer to installment 2 of 6.

• Booking Type: Type of open installment. Possible values are:

  • FIRST: Installment that has been captured and sent to the scheme.

  • ACCELL: Installment that has been refunded.

    The balance of the refunded installments has been carried forward so that the installment can be refunded from your account.

    The balance of this installment has also been brought forward to refund the outstanding amount to your account.

  • REPRESENTMENT: Installment that resulted in a chargeback, and a defense was made.
  • RETRY: Installment that did not capture the first time.

For more information on this report, refer to our Payment accounting report documentation.

See also