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Processor Settlement Review Handover for Fee Discrepancy
Review Question and Source Records Needed
The primary review question is: Do the payment processor settlement statements agree with the bank receipts in all material aspects, including gross sales, fees, refunds, and adjustments? This question guides the reconciliation and fee discrepancy detection process.
Required source records include:
- Processor Settlement Reference: The specific identifier for the payout or settlement period from the payment processor, ensuring correct account, currency, and payout type.
- Bank Receipt: The corresponding bank deposit receipt matching the processor’s payout for the period.
- Processor Settlement Statement: A detailed report itemizing gross transactions, documented fees, refunds, and any other adjustments.
These documents form the basis for comparison and help identify any unexplained differences without presuming their origin or cause.
Collect, Compare, and Review Workflow for Processor Settlement Statements
- Obtain the payment processor settlement reference, corresponding bank receipt, and settlement report covering the exact business account, currency, and payout period.
- Verify the completeness and accuracy of records before beginning comparison.
- Separate and identify gross sales, documented fees, refunds, and other documented adjustments from the settlement statement.
- Match each identified gross transaction group and each deduction category against recorded bank receipts line by line.
- Note any unexplained differences or mismatches, including undocumented items or variations in reported amounts.
- Do not presume reasons for discrepancies or invent missing fee components; simply document unresolved items as exceptions.
- Prepare an exception report that provides detailed references to source records, notes unsupported discrepancies, and assigns responsibility for further review.
- Pass this report and all supporting documents to the designated reviewer for validation and final approval.
A hypothetical example
Hypothetical example: a contractor gives a new reviewer a bank receipt and a processor settlement reference. The preparer confirms that the documents identify the same business account and currency, then checks the settlement period. The available evidence does not include the detailed settlement report explaining the payout. The preparer retains both references and records the missing report in an exception report. The handover identifies the responsible reviewer and the next action: obtain the applicable settlement evidence from the processor and check which transactions, fees, refunds or other adjustments it actually documents. The reviewer does not invent a fee or assume gross sales should equal the net bank receipt. Until the evidence arrives, the item remains open. No amount, accounting adjustment or processor error is asserted by this example.
Completion Checklist and Review Report for Processor Settlement Fee Discrepancy
- Confirm processor settlement reference, bank receipt, and settlement statement are included.
- Verify gross sales, fees, refunds, and adjustments are separately documented.
- Note any unexplained differences without assuming additional fees or adjustments.
- Prepare a detailed exception report citing source documents and unresolved items.
- Identify the review owner responsible for follow-up and specify their next action.
- Distinguish supported conclusions from open discrepancies clearly in the report.
- Transfer the exception report and supporting evidence to the next reviewer for validation and final approval.
Featured Snippet
Match payment processor settlement statements to bank receipts, identify gross sales, fees, refunds, and adjustments separately, document unexplained differences, then transfer detailed findings from preparer to reviewer for validation and final approval.