Once gateway-fee collection starts, two separate reconciliations run: receipt matching (what students paid) and settlement matching (when the gateway deposited what into the bank). Confusing them makes month-end’s three numbers mismatch: receipt total, gateway total, bank total — each different, each on different days.
What to verify: provider settlement accounting handoff vs invoice dues, kept apart
The three-level reconciliation structure:
| Level | What matches | Frequency | Common mismatch |
|---|---|---|---|
| Receipts ↔ ledger | student payments | daily | prevented by blocking hand-entry |
| Ledger ↔ gateway report | successful payment list | weekly | failed-payment flags |
| Settlement ↔ bank | gateway deposits | each gateway cycle | charges deducted, pending statements |
The core difference: receipt total = students paid (liability settled); settlement total = the gateway deposited into the bank (money in hand). A student paying today settles in three days — the in-between days belong in an “in transit” bucket; that is not lost money.
A usable sample: the settlement matching worksheet
The week-end sheet:
| Dates | Gateway report (successful) | Settlement deposited | In transit | Match |
|---|---|---|---|---|
| 01–07 | 12,000 (20 txn) | 9,000 | 3,000 | ✓ |
| 08–14 | 8,000 (15 txn) | 8,000 | 0 | ✓ |
| 15–21 | 10,000 (19 txn) | 7,000 | 3,000 | ✓ |
If the in-transit bucket grows large at month-end, ask gateway support; roughly equal every week means a normal settlement cycle.
Receipt-settlement reconciliation: workflow steps and limitations
- Gateway charges in a separate head — settlement deposits are net of charges; without a charge field, totals always mismatch.
- Download the settlement report from the gateway panel and archive it — the evidence lives limited in the provider’s system.
- Limitation: each gateway’s settlement timing differs — separate sheets per gateway run; do not merge them into one.
Reconciliation: questions to ask before your demo
- Does the software show settlement reports, or must they come from the gateway panel?
- Can the in-transit bucket be tracked?
See the software-level matching in fee management and the fee documentation; gateway connections on the integrations page; terminology in the glossary.
Reconciliation FAQ
When do receipt totals and settlement totals become equal?
After all payments settle — usually at week ends; the running difference is “in transit”.
Where do gateway charges appear?
A gateway-charge field in expense heads — explaining why the settlement deposit is net of charges.
Today’s bank balance shows fewer payments — a problem?
No — in transit; it lands in the next settlement cycle. Tracked in the sheet, there is no worry.