How do I reconcile my invoice?

Before you proceed with reconciliation, make sure to familiarize yourself with the structure of our Payment processing invoice. For details on how to read the document, please refer to this dedicated Help page:  How do I read my invoice? 

Which report to use

Our primary tool for matching invoiced costs with your individual transactions is the Payment Accounting Report.  It contains all Payments lifecycle transaction status changes  including all required turnovers and some of the invoiced costs.

Using the Payment Accounting Report is the most straightforward approach for invoice reconciliation because you can generate this dataset for the entire month across both your Company and/or Merchant Account level. While some of our other reports (e.g. Monthly Finance Report and Settlement Detail Report) can be used for partial invoice reconciliation, they do not contain the necessary data, granularity nor correct timezone cutoffs for a complete, end-to-end match against the invoice. 

The Payment Accounting Report can help you fully reconcile the “Already Deducted” section of your invoice, as well as other transaction-level fees charged at the end of the month.

Regular or Interactive Payment Accounting Report

There are two different versions of our Payment Accounting Report you can use for your invoice reconciliation. Depending on your need for automating processes we have different recommendations:

1. Payment Accounting Report: This version can be scheduled to generate automatically on a daily basis, making it ideal for automated, high-volume ingestion. See: How to get reports automatically
2. Interactive Payment Accounting Report: This version allows you to manually generate a custom Payment Accounting Report for a specified date range and timezone (our invoice is issued in the AMS timezone) with pre-filtered payment events. Making this version ideal for manual, one off reconciliations.

Manually generating the Interactive Payment Accounting Report might take time, especially if you generate it for extended periods. While the daily Payment Accounting Report can be automatically scheduled.

Note: Since the Interactive version of the report cannot be scheduled, and generating it for a very long time frame can take a significant amount of time, it is recommended to limit the date range when generating it manually.

Essential Payment Accounting Report Columns

*Column not enabled by default. See how to add it to your report here: Configure report columns

Generate the IPAR for invoice reconciliation

1. Log in to your Customer Area.
2. Go to Reports > Interactive payment accounting report.
3. Select Manage report and make sure to set the following parameters: 
   • Date Range: Set the start date to the 1st day of the invoiced month at 00:00:00 and the end date to the 1st day of the following month at 00:00:00. This is crucial because it ensures that all transactions on the last day are included. For a January invoice, the range would be 1st Jan 00:00:00 - 1st Feb 00:00:00.
   • Timezone: Central European Time - the invoice is generated in Central European Time regardless of where your account is based
   • Events: All (Recommended for full reconciliation). This ensures you capture all transaction-level fee types that appear on the invoice.
4. Click Generate report

Here are example settings for a January 2025 invoice: 

Reconcile fees

Having successfully generated and verified the configuration of your Payment Accounting Report, we can now proceed to the core task. This section provides the essential logic for using the Payment Accounting Report data to achieve an accurate reconciliation against your invoice, beginning with a clear overview of where fees fall within the payment lifecycle. 

The payment lifecycle graph below provides insights into when in the lifecycle certain fees are charged. This can help you understand which payment events to use as filters to reconcile your invoice.

You will need to use the Record Type column in the IPAR, which includes the abovementioned payment statuses, to obtain the transaction-level breakdown for each of the fee types.

Processing Fees 

Already deducted amount: Processing fees are calculated based on the count of transactions initiated during the month. Filter the Record Type column by the “Received” and “SentForRefund” events (and “ReceivedIncrementalAuth”, if you process authorization adjustments). The sum of values in the Processing Fee (FC) column should match with the 'Already deducted' amount for processing on your invoice. 

Note: Transactions initially marked as “Received” but which are subsequently “Refused” by our risk engine or “SettledExternally” are also subject to a Processing fee. However, the fee for these specific transactions is only calculated and accounted for when the invoice is generated at the end of the month.

As a result, the Payment Accounting Report does not show a value in the Processing Fee (FC) column for these transactions (the cell is blank for those rows). While the total count of initiated transactions remains the same, this means the sum calculated from the Payment Accounting Report will match the 'Already deducted' amount shown on your invoice, but not necessarily the final calculation.

Final calculation: Simply multiply the count of transactions by the applicable rate.

Payment Method Fees 

Authorisation Scheme Fees

The Authorisation scheme fees are scheme fees on non-settled transactions that Adyen passes on as part of our interchange++ pricing model. These fees are only accounted for at the end of the month and refer to the following events: 

• Authorisation Scheme fee Authorised - refers to 0-auth transactions (Record Type: “Authorised”)
• Authorisation Scheme fee Cancelled - refers to cancelled transactions (Record Type: “Cancelled”)
• Authorisation Scheme fee Refused - refers to refused transactions, ie. transactions that were not retried or the second refusal in a retried transaction (Record Type: “Refused”)
• Authorisation Scheme fee Refused retries - refers to 1st refusal in a retry transaction (Record Type : Retried)

To reconcile these fees, filter the Record Type column by the above-mentioned payment events and sum up the values in the Scheme Fees (SC) column.

Note that the invoice only reports on the count of transactions that incurred the fee, rather than all “Authorized” or “Cancelled” transactions.

Fees for Settled transactions

To reconcile these fees, focus on four specific fee columns: Commission (SC), Markup (SC), Interchange (SC), and Scheme Fees (SC).

In general, invoice line items map to the Payment Accounting Report  columns as follows: 

Already deducted amount: Filter the Record Type column by the “Settled” events and sum up the values across the four fee columns mentioned above. 

Depending on your pricing agreement, you might also need to use the Payment Methods column to obtain a cost breakdown for specific payment methods. For example, to reconcile payment method fees for Amex ("Commission Blend (amex)" invoice line), you need to filter by Record Type = "Settled", Payment method = Amex, and sum the values in the Commission (SC) column. 

If you need to see in which payable batches these transactions were Settled, you can refer to the Payable Batch column in the Payment Accounting Report. The same holds for Refund and Chargeback fees.

Final calculation: For any transactions where the fee is a fixed rate over the transaction amount, the final calculation of this fee on the invoice is based on the total monthly turnover. Therefore, you’ll need to sum up the values in the Captured (PC) column and calculate the final fee amount as a percentage of that. 

Note that this is only relevant for the Commission Blend or Commission Markup fees, as Scheme Fees and Interchange Fees and passed on from the relevant schemes and issuing banks, and their rates may vary.

Refund and Chargeback Fees

Refund and Chargeback fees are charged under “Refunded” and “Chargeback” events (including “SecondChargeback” and “ChargebackReversed", if relevant), so simply filter the Record Type column by these. In general, the reconciliation logic is the same as for the Payment Method fees described above (i.e., using the Commission (SC), Markup (SC), Interchange (SC), and Scheme Fees (SC) columns).

Revenue Protect Service

Adyen charges a service fee for each "Received" transaction screened by RevenueProtect, Adyen’s risk management solution. This fee is applicable for any transaction screened by the premium risk profile, regardless of its subsequent status (i.e. Authorized / Refused / Cancelled).

To identify these transactions in the IPAR, ensure you have added the Risk Premium column to your report (refer to the documentation on Configuring report columns if needed). All "Received" events with Risk Premium = TRUE are the ones which triggered the service fee.

Management Service  

Management service fees are charged for all transactions where Adyen does not acquire any funds for the merchant, but solely acts as a payment gateway. To reconcile this fee, filter the Record Type column in the IPAR by the “SettledExternally” event. 

Management and Reconciliation Service 

These R-level fees are charged when you have a direct relationship with a payment method. The pricing is agreed upon between you and that payment method. Adyen charges a service fee to consolidate these transactions under Adyen’s reporting, Customer Area, risk/disputes, and settlements.

This charge is calculated as a fixed fee over the net turnover amount, which you can obtain by filtering the Payment method column by the relevant payment method and summing up the values in the Main Amount column.

Note: The commission fees associated with these transactions that you'll find in Adyen reports are fees that the payment method passed on to us. These are not Adyen fees and it is up to the relevant payment method to issue their own invoice to you. Hence, these fees are not part of our invoice and you should exclude them from reconciliation.

Non-Transactional Scheme Fees

Non-Transactional Scheme fees are fees related to processing payments that are not ‘net settled’, meaning that they are not subtracted from the settlement of the respective payments to which they apply, and are therefore calculated on an aggregated set of transactions. For this reason, they cannot be reconciled using the IPAR. The only report with more details regarding these charges is the Non Transactional Scheme Fees Report.

You can read more about these fees and how they are charged here: What are Non-Transactional scheme fees?

Taxes

We do not deduct taxes during the month, they are only applied through our invoice. To learn more, please visit the dedicated Help page: What kind of tax is applied to my invoice?