Payment reconciliation, demystified.

A settlement pools many orders into one net payment. Reconciliation is the discipline of closing the gap between what you expected, what was settled and what actually reached your bank — until nothing is left unexplained.

The position

Three numbers, one answer

Reconciliation moves through five states. Each one is a checkable position, not a judgement call.

101ExpectedOrder receivables202SettledSettlement statement303MatchedOrder ↔ settlement404ReceivedBank deposits505ExplainedZero unexplained residue

Why it's hard

Most gaps are timing and classification

Rarely is a difference a mystery "loss". Fees appear in settlements, refunds arrive weeks later, TDS is withheld at payout, and marketplaces correct prior periods. Each is explainable — once you can see it.

DifferenceCause
Unanticipated feesCharges appear in settlements, not in the order feed
Refunds and reversalsReturns arrive after the original settlement
TCS / TDSTax withheld per marketplace rules
Payment processingBank-level differences on the payout
CorrectionsMarketplace adjusts prior-period amounts
Settlement lagsOrders settle in a later period than the sale

The matching

Two matches close the loop

Order → settlement

Settlement lineMatches to
Order valueExpected sales per order
Commission and feesCharge lines per order
Refund valueReversal of prior entries
TCS / TDSTax positions per order
Net amountThe settlement total

Settlement → bank

Payouts are matched against bank deposits, handling splits across periods and currencies and payment-processing differences — until the deposited cash reconciles to its settlements.

The goal is not zero difference. It is a difference that is fully explained, bucketed by cause, and reviewable.

See your own settlements reconciled.

Connect a marketplace and watch expected, settled and received come to a position.