Sales reconciliation

The process of identifying breaks between net sales recorded in your POS vs what your 3rd party delivery and payment partner reports. Breaks occur regardless of whether the orders from delivery partners are integrated into POS or manually keyed into POS.

Importance, Challenges and Best Practices

Importance

• Ensures accuracy of reported revenue
• Identifies discrepancies or errors quickly
• Helps prevent and detect fraud
• Provides accurate data for financial reporting and analysis
• Supports tax compliance and audit readiness

Challenges:

• Multiple payment channels and partners
• High volume of transactions
• Varying fee structures across partners

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

Net Sales Reconciliation

Reconciliation is done at a net sales level between 3rd party settlement report vs POS. Below are the possible scenarios for breaks occuring in the reconciliation.

• Formula: 3rd Party Settlement Report - POS
• Negative breaks means 3rd Party settlement report lower net sales than POS
• Positive breaks means 3rd Party settlement report higher net sales than POS

Breaks due to discount (specific to 3rd party delivery partners)

Discount is one of the reason for breaks occuring. This is because the discount information is often not captured when outlet key orders manually into POS. In scenario where the order is integrated with the POS, the discount can still be incorrect due to incorrect allocation of platform vs merchant discount.

Breaks due to service recovery (specific to 3rd party delivery partners)

Service recovery is one of the reason for breaks occuring. This is because service recovery is not updated into POS In scenario where the order is integrated with the POS, service recovery are also not interfaced into the POS.

Breaks due to others

Other reason for breaks could include

• Missing orders in POS
• Missing orders in 3rd party settlement reports
• Fat finger, where manual data entry have errors in amount, etc.
• Error in order entries

Missing orders and errors can still occur when orders are integrated from 3rd party delivery to POS.

Example of breaks:

• SGQR have lower net sales compared to POS as customer did not scan and pay the QR while outlet have keyed into the POS as paid.

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.