Reconciliation Walkthrough
This guide walks through how to reconcile your bank statement with your Disbursement & Fee Report (DFR). Follow this walkthrough step by step to match a bank deposit to a single Transfer ID, tie it to the RS and RD sections of the DFR, and confirm that every transaction is accounted for.
Prerequisites: Settlement Models
Companion file: Ch5_Reconciliation.xlsx
The Scenario
Your bank statement shows this deposit:
┌─────────────────────────────────────────────────────────────┐
│ BANK STATEMENT │
├─────────────────────────────────────────────────────────────┤
│ Date: 2026-01-15 │
│ Description: ACH CREDIT BRAINTREE │
│ Reference: TRF_001 │
│ Amount: $890.49 │
└─────────────────────────────────────────────────────────────┘Goal: Verify this matches your DFR and trace it to individual transactions.
Step 1: Bank Statement → RS (Report Summary)
Find the RS row where Transfer ID matches your bank statement reference.
Look for:Transfer ID = TRF_001
┌─────────────────────────────────────────────────────────────┐
│ RS (Report Summary) Row │
├─────────────────────────────────────────────────────────────┤
│ Transfer ID: TRF_001 │
│ Sales: $1,015.49 │
│ Refunds: -$125.00 │
│ Disputes: $0.00 │
│ Net Disbursed: $890.49 │
└─────────────────────────────────────────────────────────────┘Validation #1: Bank amount ($890.49) = rs.net Disbursed ($890.49) ✓
If these don't match: Check for failed disbursements, reserve holds, or previous transfer recoveries.
Step 2: RS → RD (Report Details)
Filter the RD section by Transfer ID = TRF_001 to see every transaction that contributed to this deposit.
Note: This example shows Gross Settlement (fees tracked, not deducted). In Net Settlement, the Net Disbursed column would be less than Gross Settlement due to fee deductions.
| Record ID | Type | Order ID | Gross Settlement | Net Disbursed | Transfer ID |
|---|---|---|---|---|---|
TXN_001 | Sale | ORD-10001 | $500.00 | $500.00 | TRF_001 |
TXN_002 | Sale | ORD-10002 | $250.00 | $250.00 | TRF_001 |
TXN_003 | Sale | ORD-10003 | $175.50 | $175.50 | TRF_001 |
TXN_004 | Sale | ORD-10004 | $89.99 | $89.99 | TRF_001 |
TXN_005 | Refund | ORD-10005 | -$75.00 | -$75.00 | TRF_001 |
TXN_006 | Refund | ORD-10006 | -$50.00 | -$50.00 | TRF_001 |
SUM | $890.49 | $890.49 |
Validation #2: SUM(RD.NetDisbursed) = rs.netDisbursed = Bank Amount
Step 3: RD → Your Internal System
If passed by the merchant at transaction time, use Order ID to match each DFR record to your internal orders:
| DFR Record ID | DFR Order ID | Your System | Amount | Transfer ID | Match? |
|---|---|---|---|---|---|
TXN_001 | ORD-10001 | Order #10001 | $500.00 | TRF_001 | ✓ |
TXN_002 | ORD-10002 | Order #10002 | $250.00 | TRF_001 | ✓ |
TXN_003 | ORD-10003 | Order #10003 | $175.50 | TRF_001 | ✓ |
TXN_004 | ORD-10004 | Order #10004 | $89.99 | TRF_001 | ✓ |
TXN_005 | ORD-10005 | Refund #10005 | -$75.00 | TRF_001 | ✓ |
TXN_006 | ORD-10006 | Refund #10006 | -$50.00 | TRF_001 | ✓ |
Validation #3: All DFR records match your internal system
Validation Formulas Reference
| # | Formula | What It Validates |
|---|---|---|
1 |
| Bank deposit matches DFR summary |
2 |
| Summary matches detail records |
3 |
| RS components add up correctly |
4 |
| Per-record fee math (fees are negative) |
Next: Transaction Types