How do franchisees reconcile their invoice?

In order to match the cost of transactions to the Adyen Invoice, Franchisees are advised to use the Interactive Payment Account Report (IPAR), found in the Finance tab. 

 

Step 1:

To download this report for invoice reconciliation purposes, the franchisee can :

  1. Log in to Essentials
  2. Open the Finance tab > Interactive payment reports
  3. Select Generate Report, choose the date range that matches the invoice and the configured time zone
  4. Select the following events : Received, Authorized, SentForSettle, Settled, Sent for Refund
  5. Select Generate report.

 

Step 2: 

Download the invoice in CSV or PDF. The monthly invoices can be found in the Finance tab >  Invoice. 

 

Step 3: Determine processing fees

To see the transaction processing fees charged by Adyen, find entries with the Record Type: 

Received and SentForRefund.

Add the amounts from the Processing Fee column together and take into account the currency. This is the total of processing fees that have been deducted from your payout.


Step 4: Match processing fees to your invoice

In your invoice, under the Specification of amounts already deducted from settlement section, you can see the total processing fees as Subtotal in the Processing Fees table.

FR-044_1_.png

Look at the Summary section of your invoice.

FR-044.png

If the amount of total processing fees doesn't equal the amount in the Processing Fees line, then go to the Specification of final calculation including discounts section of the invoice.

FR-044_2_.png

If you need to pay additional fees, you see additional lines in the table. For example, there can be additional lines showing processing fees from transactions settled by other acquirers and fees on transactions refused by our risk engine.

 

Step 5: Reconcile acquiring and payment method fees

Acquiring and payment method fees are charged only when a transaction reaches the Settled status. To see these fees in your report, find the transaction records with the Record Type: Settled.

 

See the amounts in the following columns:

Markup: A fee paid for certain card payments or for currency conversion between processing currency and settlement currency. The fee amount depends on the type of card payment or currency conversion rates.

Scheme Fees: A fee paid to the card scheme for each payment transaction made with the card scheme. The fee amount is determined by the corresponding card scheme.

Interchange: A fee paid to the issuer for each payment transaction made via a card network. The interchange fee amount is determined by the corresponding card network. 

 

Add all these amounts together for the total acquiring and payment method fees. On your invoice, this total and the itemized list of fees are under the section with the calculated amounts.

FR-044_3_.png

Step 6: Payment method fees discrepancy
If the amount in one of the Payment Method Fees lines under the Specification of final calculation including discounts section does not equal the amount in the corresponding line under Specification of amounts already deducted from settlement, it may be due to a rounding difference. For example:

  • The commission markup for a payment method is 0.5%.

  • You process 100 transactions, each with the amount of $1.00.

The amount in the line under Specification of amounts already deducted from settlement is calculated for each transaction: 100 x ($1.00 x 0.5%) = $0.00.

The amount in the line under Specification of final calculation including discounts is calculated for the aggregated transaction amount (100 x $1.00) x 0.5% = $0.50.


Step 7: Determine your amount due
The Amount due line under the Summary section of your invoice equals the costs calculated at the end of the month minus the already deducted amount. Your Amount due will be added or deducted from your next payout and will be an Invoice deduction entry in the corresponding Settlement details report.

Was this article helpful?
0 out of 0 found this helpful