Reading processor settlements beside the billing export
Fee netting and rolling reserves explain many ‘missing cash’ gaps long before fraud enters the conversation.
Finance teams often compare the billing application’s “collected” total to the bank deposit and stop when the numbers differ. In subscription businesses, the useful comparison is three-way: billing charge IDs, processor settlement lines, and cash receipts.
Fee netting
Many processors deposit net of commissions. If the ledger books gross billing and never records the fee, the gap looks like missing cash. Classification as a fee expense closes the mystery without inventing a write-off.
Rolling reserves
Reserves held for chargeback risk appear as unsettled amounts. Note the release schedule in the reconciliation workbook so next month’s deposit does not get booked as new revenue.
Multi-currency plans
When one billing application prices in more than one currency, settle each currency block separately before translating. Mixing FX into the chargeback column hides both problems.