Overview
Reconciliation and Settlement is a very important financial operation for any business across industries.
Merchant Settlement
Settlement is a process which results in a Merchant/Business receiving the payout in the designated bank account for the payments collected as per the settlement cycle. The settlement cycle is generally T + 2 business days as per regulatory norms, T being the date of capture of payment.
For more details, refer to Settlement FAQ.
Merchant Reconciliation
Payment reconciliation at the merchant end describes the process of comparing internal financial records in the Merchant system with Payments and Settlements report provided by Payabbhi to ensure a match between the two sets of records. This process typically surfaces any discrepancies / exceptions for Semi-Automated or Manual resolution.
Payabbhi provides standard reports & tools to help merchants streamline reconciliation process across AP/AR functions addressing multiple channels, payment methods etc. The process is specifically designed to reduce manual intervention through increased automation thereby increasing operational efficiency for reduced TCO .
On-demand Settlement Data
Payabbhi allows you to access your settlement data easily on the go. Just access your data either programmatically via Settlement API or via Portal > Settlements on demand.
Life-cycle of a Settlement
The typical lifecycle of a Settlement is depicted in the following table:
| Status | Description |
|---|---|
| Processing | The settlement is being processed by the platform. |
| Settled | The settlement is successfully completed i.e the money has been credited to Merchant’s bank account. |
| Declined | The settlement has been declined by the system i.e the money is yet to be credited to Merchant’s bank account. |
Financial Reporting
Payabbhi provides effective financial reporting via standard / dynamic reports accessed from the Merchant Portal as well as through APIs.
Financial reports are automatically generated at defined frequencies (typically on a daily and monthly basis) or can be created dynamically. The reports can be used to perform financial tasks, such as validating funds received, validating and booking costs against your accounts, and reconciling balances.
Payments Report / API
The Payments report is generated every day and includes detailed information about all types of Payments. This includes payments collected through the entire suite of Inflow products such as LiquiFlo Checkout, Payment Link, Payment Page, Invoice, QR Code, Virtual Account etc.
| # | Column | Description |
|---|---|---|
| 1 | id | Unique identifier of Payment. |
| 2 | amount | Payment amount in paisa (e.g., 5000 paisa denotes Rs 50.00) |
| 3 | currency | Three-letter ISO currency code. Currently only INR is supported. |
| 4 | status | The status of the payment is either of authorized, captured, refunded or declined. |
| 5 | order_id/invoice_id | Unique identifier of an Order/ Invoice against which this payment has been made |
| 6 | international | It is set to true if the payment is done using an international card. |
| 7 | method | Method used during payment. Currently, it can be one of card, emi, netbanking,wallet,upi or bank_account. |
| 8 | refunded_amount | The amount refunded, in the smallest currency unit (paisa). |
| 9 | refund_status | The refund status of the payment. Can be one of empty string, full or partial. |
| 10 | description | A description field provided by the merchant while initiating Checkout. |
| 11 | card | When payment method is card or emi, this will contain the card brand-card type example. visa-credit. |
| 12 | bank | When payment method is card or netbanking, this will contain the bank name. |
| 13 | wallet | When payment method is wallet, this will contain the wallet brand. |
| 14 | vpa | When payment method is upi, this will contain the customer vpa. |
| 15 | emi_tenure_months | |
| 16 | emi_interest_rate_percentage | |
| 17 | emi_provider | |
| 18 | emi_subvention | |
| 19 | Payer email address. | |
| 20 | contact | Payer contact number. |
| 21 | notes | Set of key/value pairs that you can attach to an object. It can be useful for storing additional information about the payment object in a structured format. |
| 22 | fee | Fee charged by us including service tax, in the smallest currency unit (paisa). |
| 23 | gst | Service tax charged in the smallest currency unit (paisa). |
| 24 | payout_amount | Amount to be settled to the Merchant, in the smallest currency unit (paisa). |
| 25 | payout_type | Indicates if Credit to Merchant or Debit from Merchant. |
| 26 | settlement_id | Unique identifier of a Settlement object against which the payment was settled. |
| 27 | error_code | Error code in case of an error during payment. |
| 28 | error_description | Description corresponding to the error. |
| 29 | created_at | Payment creation timestamp. Measured in seconds since the Unix epoch. |
Settlement Report / API
The Settlement report described net settlement figures aggregated for all payments in accordance with the defined settlement cycle.
| # | Column | Description |
|---|---|---|
| 1 | id | Unique identifier of Settlement. |
| 2 | amount | Amount to be settled, in the smallest currency unit (paisa). |
| 3 | currency | Three-letter ISO currency code. Currently only INR is supported. |
| 4 | status | The status of the settlement is either of processing, settled or failed. |
| 5 | fees | Fees charged by us including gst, in the smallest currency unit (paisa). |
| 6 | gst | GST charged in the smallest currency unit (paisa). |
| 7 | utr | Unique Transaction Reference (UTR) number is provided by our banking partners and it can be used to track a particular settlement in your bank account. |
| 8 | settled_at | Timestamp when a settlement is settled. Measured in seconds since the Unix epoch. |
Settlement Details Report / API
| # | Column | Description |
|---|---|---|
| 1 | id | Unique identifier of Transaction for which the settlement has happened. |
| 2 | transaction_type | This can either of Payment, Refund, Transfer. |
| 3 | order_id | Unique identifier of Order, if the Transaction type is Order |
| 4 | invoice_id | Unique identifier of Invoice if the Transaction type is Invoice. |
| 5 | order_id/invoice_id | Unique identifier of an Order/ Invoice against which this payment has been made |
| 6 | notes | Set of key/value pairs that you can attach to an object. It can be useful for storing additional information about the Settlement object in a structured format. |
| 7 | method | Method used during payment. Currently, it can be one of card, emi, netbanking,wallet,upi or bank_account. |
| 8 | amount | Transaction amount, in the smallest currency unit (paisa). |
| 9 | currency | Three-letter ISO currency code. Currently only INR is supported. |
| 10 | fees | Fees charged by us including gst, in the smallest currency unit (paisa). |
| 11 | gst | GST charged in the smallest currency unit (paisa). |
| 12 | settled_amount | Amount to be settled, in the smallest currency unit (paisa) |
| 13 | settlement_id | Unique identifier of Settlement. |
Dynamic Reports / On-demand API
Dynamic reports can be created on demand from the Merchant Portal or programmatically via API at any point of time for any entity like Payments, Invoices, Orders etc.
Sample Dynamic Report
Generate report to list all payments where payment method was cards for a given date range.
Monthly Invoice for merchant
Payabbhi issues a monthly invoice that includes a full description of the fees for payment processing. You must decide whether to book these credits or debits proportionally to the relevant cost centers, or as a single cost item booked at company level. Invoicing typically runs at merchant account level.
Notifications for Business Events
Such system generated notifications (webhooks) are triggered by significant business events and can be used to automate Merchant business processes by following event-driven paradigms. For more information, please refer to Webhooks.
Payabbhi allows you to automate your reconciliation process by registering webhook endpoints for the following events generated during the settlement lifecycle.
- order.paid
- payment.captured
- payment.refunded
- settlement.settled
- settlement.failed
Please refer to Business Events for a list of events.
Performing Reconciliation
The reports contain detailed information about all transactions in various formats (typically CSV). These reports are designed to allow matching & reconciling of payments data and internal financial records and help in identification of exceptions for further analysis and reconciliation steps.
Reconciliation use-cases:
| Use Case | Purpose | Report Needed |
|---|---|---|
| 1 | Balance level Reconciliation | Settlement Report |
| 2 | Payment Transaction Level Reconciliation | Settlement Detail Report |
| 3 | Validate gross sales on a daily or monthly basis.Identify discrepancies between sales and payments received. | Order Report Payment Report |
| 4 | Automation of Reconciliation process. | Settlement Detail Report, Payment Report |
| 5 | Refund Level Reconciliation | Refund Report |
Contact Us
For queries, please contact us at contact@payabbhi.com, and we will help you as best as we can.