Key Reports for Reconciliation

Cash Report
Payout Summary
Payout Detail exports

Important Points

The Sales report (also called Cash/Sales Report with accrual filter) uses accrual accounting, so it's not recommended for reconciliation with the Payouts Report.
Reconciliation involves comparing data from different time periods and sources.

Payout Deposit Reconciliation

Learn to reconcile your payout deposits with financial reports – Cash Report, Payout Summary, and Payout Detail exports – matching the Record ID/Payout ID across exports. The Sales report, also called the Cash/Sales Report with the accrual filter, operates on accrual accounting. Due to this, reconciling the Payouts Report with the Sales Report is not recommended, as it's likely the reports will not reconcile.

Achieving accurate reconciliation requires a thorough understanding of the varied sources and time contexts of the data. Therefore, attempting reconciliation by pulling data from the Cash/Sales report within the same date range as the payout is not going to be successful.

Step 1: Export Reports

When using the Cash Report export, as demonstrated in the example below, it's crucial to understand that reconciliation means comparing different sets of records to make sure they align. The data needed for reconciliation originates from multiple reports and different time periods, leading to variations that can not be directly matched.

In our example we will export the Sales Report (cash basis), Payout Summary, and Payout Detail reports for analysis and be mindful of the date ranges used for export. In our example we will be analyzing the payout for 1/13. If analyzing the payout for 1/13:

Choose a specific payout for analysis
Note the associated payout ID
Export Payout Detail, including transactions from 1/12 and 1/11
Export Payout Summary for 1/13.
Export Cash Report covering transactions in Payout Detail from 1/11 to 1/12
Import all three reports into a single Excel document for streamlined viewing

Step 2: Identify the Record ID

Locate the Record ID in the Payout Summary, ensuring it aligns with both the Cash Report Payout ID and the Payout Detail Report Payout ID.

Step 3: Select Transactions

In the Cash Report, identify credit card transactions with the same payout ID. Exclude cash transactions lacking a Payout ID.
Calculate the Cash Report total: Paid - Discounts + Taxes - Transaction Fees.
Calculate the Payout Detail total: Paid + Taxes - Amount Fee.
Subtract the payout fee from either total for an accurate match (net deposit).

Step 4: Breakdown of Payout

Analyze and break down the Payout by examining components such as Record ID, Payout ID, and additional details for a comprehensive understanding.

Key Components of Your Payout

Your payout report contains important information about your transactions and associated fees. This guide will help you understand the key components and why certain calculations are made the way they are.

Payout Fee

What it is: A fee charged for processing your payout.
How it's calculated: 0.25% of the previous day's net deposit + 25 cents
Important to note: This fee is based on yesterday's transactions, not today's.

Why is it calculated this way?

It allows time for all transactions to be finalized and checked.
It provides more stable and predictable fee calculations.
It helps manage daily fluctuations in transaction volumes.

Example:

Day 1: You process $1,000 in credit card payments.
Overnight: Our system reviews and finalizes these transactions.
Day 2: We calculate your payout fee based on Day 1's net deposit (let's say $980 after other fees).
- Payout fee would be: (0.25% of $980) + $0.25 = $2.70

Merchant Transaction Fee

What it is: A fee charged by Stripe for processing each payment.
How it's calculated:
- For online/keyed payments: 2.9% of transaction amount + 30 cents
- For in-person payments (using a card reader): 2.7% of transaction amount + 5 cents