Payment and settlement reconciliation system
The system compares payments to bank, partner and accounting records. The employee receives mismatched amounts and related data to figure out the difference.
Accounting records for banks, payment networks, partners and internals do not always match. Non-conformities prevent the status of the payment from being determined, can mislead the customer and lead to incorrect accounting records.
How the solution works
- Accept full source period
- Link transactions to billing records
- Explain taxes, time and corrections
- Examine the remaining exception
- Confirm the reconciliation and pass the necessary correction
Key challenges
- Settlement and reconciliation have manual exceptions
Solution capabilities
Import Fullness
Checks the sequence, period, currency and checksums of a file or messages. Re-importation does not duplicate the financial record.
Linking sums
Supports a single transaction, parts, and shared network billing connection. A uniform number without sufficient attributes is not a reliable coincidence.
Explaining the Ingredients
Separates gross amount, tax, reserve, repayment and currency conversion according to the agreed source.
Controlling funds and liabilities
Where applicable, compare the amounts due to clients with the facts assigned to their protection by the institution's method. Operational money is not included as client funds solely because of the total balance of the bank.
Exception decision
Specifies the unexplained amount, its old age, and its repair role. The accounting correction back-end is saved before the case is closed.
Business context
- Settlement and reconciliation have manual exceptions
- Accounting records for banks, payment networks, partners and internals do not always match. Non-conformities prevent the status of the payment from being determined, can mislead the customer and lead to incorrect accounting records.
- Clear calculation of funds received for the trader
- The trader wants to understand which sales have already been paid and why the amount transferred differs from the value of orders. Linked fees, returns and settlements help provide an accurate explanation. His financial team is reduced by manual checks and the payment provider is subject to recurring questions.
Core features
- Import Fullness
- Linking sums
- Explaining the Ingredients
- Controlling funds and liabilities
- Exception decision
Key integrations
- Sources of payments and banks or networks
- Transactions, billing cycles, fees and refunds data.
- Accounting and customer balances
- Financial records, commitments and confirmation of correction.
Potential impact (%)
The ranges indicate an illustrative relative change in the metric under the stated assumptions. Results depend on the starting position and actual use of the solution. Percentages for different metrics must not be added together.
Unexplained settlement differences by currency
12–42%Decreasing
This illustrative scenario assumes that 30-60% of errors can be addressed through the data and rule checks described. That share is assumed to fall by 40-70%. Company data is needed to verify both the addressable share and the resulting change.
At the moment of revision, absolute amounts of outstanding spreads are summed up separately in each currency. Different currencies are not added without a specified rate, date and conversion method; positive and negative spreads are not accounted for.
Time of manual transaction reconciliation
16–42%Decreasing
This illustrative scenario assumes that 40-70% of information searches and repeated cross-checks can be addressed. That share is assumed to fall by 40-60%. Company data is needed to verify both the addressable workload and the resulting change.
Measure the working minutes for one thousand operations of the same flow, while checking for misalignments.
Conditional calculation scenarios. The assumptions have not been validated against client measurements.
When this solution is relevant
- When preparing period reports, the team manually searches for differences in payments, benefits and accounting records.
- Due to the combination of commissions, partial repayments, or multiple transactions, it is difficult to determine what the amount received consists of.
Project scope and implementation
The rules of consent are combined according to the company's actual differences in payments and accounting. If the system used can reliably explain them, the project may be limited to its settings and data transfer. Unexplained differences are passed on to the responsible employee.
Further development options
- Other networks and currencies with separately verified settlement and tax rules.