Payment Gateway Settlement Reconciliation

A gateway pays a day of collections as one credit, minus its charge. Settlement reconciliation splits that credit back into the invoices behind it and posts the charge to its own head.

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Why this line does not match

The amount in the bank differs from the amount customers paid, because the charge has already been taken out. Matched whole, every bill behind the credit stays open. Left alone, the day stays unreconciled. The credit has to be opened up.

How the credit is split

Settlement report beside the statement

The gateway’s own report lists the payments inside the batch. It is read alongside the bank line, and the two are lined up by settlement reference.

Bills marked paid one at a time

Each payment in the batch goes against its own invoice, so a customer’s ledger moves on the day of payment and not at month end.

Charge posted separately

The gateway’s commission and the GST on it go to their own heads. Over a year that figure is worth reading on its own.

Refund inside a batch

A refund taken out of the day’s batch is read with the rest and set against the payment it reverses. The bill behind it does not stay marked as paid.

What is left on the list

Not every batch reconciles cleanly, and the items that do not are worth reviewing.

A payment in the report with no credit in the bank yet
A credit in the bank with no report line against it
A batch where the total and the credit disagree
Settlements received for the month, split back to their bills

FAQ

Frequently asked questions

What if the gateway report and the bank credit do not agree?

The difference is flagged and not forced. Somebody raises it with the gateway, and the batch stays open until it is answered. Nothing is written off to make a page balance.

Which gateways does this work with?

Any gateway that provides a settlement report which can be downloaded. The layout is mapped once, as a bank statement is. The report has to name the payments inside each batch.

Does direct UPI into the bank behave differently?

Yes, and more simply. A direct UPI credit is one payment with its own reference, so it matches against the bill like a bank transfer. Only batched settlements need splitting.

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