Payment reconciliation

The process of identifying breaks between payment recorded in your Bank Statement vs what your 3rd party delivery and payment partner reports.

Importance, Challenges and Best Practices

Importance

• Identifies discrepancies or errors quickly
• Provides accurate data for financial reporting and analysis
• Ensures proper cash flow management
• Supports tax compliance and audit readiness

Challenges:

• Multiple payment channels and partners
• High volume of transactions
• Varying payment schedules across partners
• Timing differences between sale, settlement, and bank deposit

Best Practices

• Implement automated reconciliation tools where possible
• Establish clear standard operating process (SOP) to eliminate key man risk
• Perform reconciliations frequently (daily if possible)
• Maintain detailed documentation of all reconciliation activities
• Regularly review and update reconciliation processes as business needs change

Payment Reconciliation

Reconciliation is done at a payment level between Bank Statement vs. 3rd party settlement report. 0 break is expected to happen before closing of books for month end reporting. Below are the possible scenarios for breaks occuring in the reconciliation. Not all of the payment are made at an outlet level, for example Deliveroo settle for all outlets in one single payment weekly.

• Formula: Bank Statement - 3rd Party Settlement Report
• Negative breaks means Bank received amount lower than 3rd Party settlement report
• Positive breaks means Bank received amount higher than 3rd Party settlement report

Breaks due to timing differences

By default we will use the value date as indicated in the report for reconciliation however, in some cases we will have to put in place the logic to calculate the day of payment which might not be accurate to the date. As such our month to date view will always cover those scenarios where payment is a day or two earlier or later than our expectation.

Level of Reconciliation

VAL follows an exception management basis process where we highlight the breaks at the highest level and slowly drill down to the most granualar breaks we can identify. This is to allow customers to take a call if they should spent time to dig deeper saving them precious time and effort.