Settlement reconciliation
The process of matching payouts from marketplaces, payment gateways, and banks against the orders or transactions that generated them — and flagging any variance in amount, fees, or timing.
Settlement reconciliation is the finance-operations process of ensuring every rupee earned through a marketplace, payment gateway, or payment aggregator reaches the merchant's bank account at the expected amount and expected time — after fees, commissions, and deductions. It sits between the sale and the bookkeeping entry.
For Indian commerce teams, settlement reconciliation typically spans four sources of truth: the marketplace payout report (Amazon MTR, Flipkart settlement report, Meesho payout), the payment gateway settlement report (Razorpay, Cashfree, PhonePe), the bank statement, and internal order records. Discrepancies are common and small per-row variance compounds across thousands of orders.
Automated settlement reconciliation tools like ReconPe reduce this from hours of manual VLOOKUP into minutes of review, using probabilistic matching to handle format drift and rule engines to verify that commissions, taxes, and deductions were applied at the correct rates.
