Reconciliation is how you know the money you think arrived actually did.
Payment reconciliation makes sure every amount received is accounted for. Without it, teams overstate revenue, sit on unapplied cash, and miss duplicate charges and fraud.
Three layers that must agree
Reconciliation compares customer payments, your billing records and the bank deposits. Once timing differences are resolved, all three should tell the same story.
The usual gaps: partial payments, a batch deposit covering several customers, processor fees netted out of a settlement, and refunds issued after the original deposit.
The workflow
Pick a daily or weekly cadence based on volume. Import the bank and processor settlement files, then match against open invoices on amount, date and reference.
Anything unmatched goes to a review queue with a named owner. Aging rules push the high-value and long-standing exceptions to the top.
- Import bank and payment-processor settlement data
- Auto-match on reference IDs, amounts and dates
- Route exceptions to a review queue
- Document write-offs and adjustments with an approval trail
The awkward cases
One payment covering several invoices, currency conversion, chargebacks: each needs an explicit allocation rule. Apply cash to the oldest open balance unless the contract says otherwise.
Processor holds and rolling reserves change when the cash is genuinely available. Track gross against net deposits, or your forecast will drift.
Controls
Separate recording a payment from approving a write-off. Lock a period once reconciled, so nothing changes behind you without authorization.
Keep the match logs and the exception notes. An auditor or an investor will want the trail from invoice to bank deposit.
Written by the team at Ambivo, a business platform that keeps CRM, accounting and ERP on one customer record. This article is general guidance on the topic rather than a description of Ambivo features.