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Aligning Processor Settlement and Bank Receipt Periods
Review Question and Source Records
The key review question is: Do the processor settlement records and bank deposit receipts reflect matching reporting periods and consistent transaction details for the same time frame?
To answer this, you need these source records for each period under review:
- Processor settlement statements: These include detailed listings of gross transactions, documented fees, refunds, and other adjustments within the specified statement period.
- Bank deposit receipts: Records from the bank confirming the dates and amounts of funds deposited, intended to correspond with payouts from the processor.
The initial step is to verify that both the processor settlement statement and the bank receipt cover the same reporting period, currency, and payout method. These matched sources then become the foundation for reconciling gross transactions, fees, refunds, and adjustments. Misalignment in periods or missing supporting documents should be noted for further examination.
Collecting, Comparing, and Reviewing Processor and Bank Records
- Gather the processor settlement statement, bank deposit receipt, and associated processor settlement reference for the same reporting period.
- Verify that the business account, currency, and payout type are consistent across all collected records.
- Compare reported gross transactions on the settlement statement to deposit amounts on the bank receipt without assuming they must be equal.
- Separately review documented fees, refunds, and other adjustments listed in the processor settlement statement.
- Prepare a detailed exception log of any discrepancies that cannot be directly supported by the source records.
- Include in this report all source documents, exact amounts, and notes on what remains unexplained.
- Assign the exception report to the designated reviewer with a clear next action to investigate outstanding differences.
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 Preparation
- Confirm processor settlement reference, bank receipt, and settlement statement are gathered and retained.
- Verify matching business account, currency, reporting period, and payout type across records.
- Compare and document gross transactions, fees, refunds, and other adjustments separately, noting all differences.
- Prepare an exception report listing unresolved discrepancies with source references and unsupported items clearly identified.
- Assign review owner and specify the next action required for unresolved items.
- Distinguish supported conclusions from open exceptions without inferring causes or making adjustments.
- Compile exception report and all supporting documentation for handoff to the next reviewer for continued evaluation.
Featured Snippet
Gather processor settlement statements and bank deposit receipts. Verify matching reporting periods before reconciling gross transactions, fees, refunds, and adjustments. Document unexplained discrepancies separately for review.