What is payment reconciliation?

• Check that my recorded sales is same as what my 3rd party delivery vendor, 3rd party payment vendor, 3rd party market place have recorded in their systems.
• Check that I have received the cash in my bank for what my 3rd party delivery vendor, 3rd party payment vendor, 3rd party market place is suppose to pay me.
• Make sure that I record the sales, dispute, commission, gst, collection, co-marketing fee, etc correctly in my accounting system

Steps of payment reconciliation in VAL

1. Load and collect data
2. Check for anomalies in 3rd party charges
3. Check reconciliation results at a brand and platform level for month to date period
4. If breach threshold, check reconciliation results at a outlet, platform level by day
5. Use aggregated services and fees number across 3rd party to create journal entries

1. Load and collect data

In VAL, we have both direct connectivity as well as pre-built report reader for the commonly used POS and payment methods used by our customers.

For direct connectivity, users do not need to perform any task as VAL will automatically pull data from source system.

For pre-built report reader, users will have to download the report from source system and drop the files in VAL Drive. VAL Drive will read the files and use the appropriate report reader to read the data and upload data into VAL.

PS: For 3rd party settlement reports we will load all transactions information provided so you will be able to dig into transaction by transaction if required.

2. Anomalies check

With the data loaded from 3rd party partners we chart out the last 3 months commission, discounts, service recovery, marketing and any other relevant fees. The trend is shown based on the percentage of these numbers against revenue generated through the 3rd party partners to allow easy identification of anomalies.

The information is provided at both a platform and brand level.

3. Non-Cash Reconciliation Check 1

Everyday VAL will perform a reconciliation run based on the data made available. VAL will provide the following reconciliation result to allow users to determine next step.

Sales reconciliation

Gross sales differences between POS and 3P partners

• Gross sales difference attributed to discounts
• Gross sales difference attributed to service recovery
• Gross sales difference attributed to others

Reason for “other” breaks

• Erroneous manual keying
• Missing transaction in POS and in 3P partners report
• Missing transaction in 3P partners report and in POS

Payment reconciliation

• Payment differences between 3P partners and Bank

In the event there are any erroneous entry where outlet have keyed in one payment method for another, this differences can be clearly identified. eg. visa keyed as master

At this stage, users will be able to determine if the breaks are large enough to warrant spending more time on investigation.

PS: Take note that sales reconciliation will never go to 0 and payment reconciliation is expected to go to 0. The reason is because any service recovery or differences are typically not captured in POS

4. Non-Cash Reconciliation Check 2

When breaks are above threshold, users will check the differences at an outlet and platform level for specific day to check where the breaks are coming from. This can be applied to both sales and payment reconciliation, however for single payment from 3P that covers multiple outlets, there will be no way to drill into outlet differences for payment.

5. Cash Reconciliation Check

Monitor the cash at risk and when its too high, chase after the outlet that has the highest aging ie. number of days not yet deposited and the outlet that is holding on to the most cash.

6. Create Journal Entries

With the data uploaded from the platforms, we aggregate the fees, services and gst numbers and allocate it to the appropriate classifications so that you can take the numbers and create your accounting entries accordingly.