Reports reconciliation guide

DocsBetaLast updated: March 22nd 2024, @ 3:46:30 am

Reconciliation reports help finance and accounting teams to meet their end-to-end reconciliation requirements.

Use cases for PayPal reconciliation reports

The following table identifies the merchant reconciliation use cases and the recommended report for each use case.

Use caseRecommended reportDelivery options
  • Reconciling payments received using PayPal with your order management system data.
  • Reconciling the specified period's payment activity with the end of day PayPal balances. Includes sales, refunds disputes, fees, and withdrawals.
  • Understand payouts to your bank accounts
  • Summary view of the total payment activity for the specified period aggregated by transaction category and payment methods

Balance report

Has 2 templates:

  1. Balance summary report
  2. Balance transactional report
  1. PayPal merchant portal web download
  2. SFTP

Monthly summary view of balances and payment activity.

  • Provides a consolidated view of balances, payments, fees, taxes, chargebacks, and refunds in your account.

  • (IC++ pricing model only) Reconcile the total fees against the fees debited monthly

Monthly Statement

  1. PayPal merchant portal web download
  2. SFTP

Applicable for merchants who are on the IC++ pricing model only.

  • Understand the interchange, scheme, and PayPal fees billed monthly.
  • Reconcile the total gross billed fees against the fees debited monthly.

Fees report

(Monthly Report)

  1. PayPal merchant portal web download
  2. SFTP

How to reconcile by use case

Use CaseHow to ReconcileReport
Reconcile balances with payment activity
  1. Closing available balance for each currency = opening available balance for each currency + sum of amounts under the Net Amount column for all transactions. Transactions are from the transaction details report for each currency.
  2. Record the transaction activity in your accounting system by leveraging record type and record subtype
  3. Closing balance of N -1 day = opening balance of Nth day
  4. Payout or bank settlement amount on Nth day = closing balance of N -1 day or the opening balance of Nth day. Only applies if you are enabled for daily auto settlement to the bank.
  5. This withdrawal to bank transaction appears in the N +1 day balance report.
Balance transactional report
Reconcile net billed fees
  1. Net billed fees are when fees are applied at the time of the transaction and charged upfront to the seller.
  2. All transactions for which fees are charged upfront, at the time of transaction, are available in the Balance Transactional report under the Total fees net billed column.
  3. Total transactional fees charged to the user in a day = Sum of amount under Total fees net billed column + Sum of Net amount field for each currency where Record Type = Fees
Balance transactional report

Users can also generate an on-demand balance summary report for a date range to get the total fees charged to them.
Total fees net billed to the user = Sum of amount under Total fees net billed column + Sum of Net amount field for each currency where Record Type = Fees

Balance summary report
Reconcile gross billed fees at the transaction level

Gross billed fees are fees billed periodically. Net billed fees are billed at the transaction event.

To identify the total IC++ fees for a specific merchant account:

  1. Select all records with the same "Merchant Account ID"
  2. Iterate through the records and consume the following columns at the minimum:
    • Record Type – Type of transaction accruing the fees
    • Total Interchange Fees
    • Total Scheme Fees
    • PayPal Fees
  3. The sum of amounts in the "Total fees gross billed" column gives you total fees. This includes PayPal markup and IC++ fees that are gross billed to the user.

There can be some monthly scheme fees charged to the merchant. These fees are not attributed to any individual transaction. These fees are not present in the fees report. Merchants can leverage the monthly statement to get the total monthly scheme fee components.

PayPal fees report
Reconcile Total Gross Billed Fees

Total fees in the invoice currency field, below the fee summary section for each currency, show the total fees billed to you and auto debited from your bank account.

This includes the monthly scheme fees, if any, that are charged to the merchant.

Monthly statement