How do I reconcile my invoice?

Invoice reconciliation guide

To match the costs of your transactions, use the (Interactive) Payment Accounting Report (IPAR).

Note: The Payment Accounting Report is the report to use when reconciling the invoice, because the PAR can be generated on days, whereas SDRs are batch based. This means that if you have a batch that spans over the end of the month and the beginning of the month due to the weekend, this will cause a difference.

The Payment Accounting Report can be scheduled to automatically generate on a daily basis you can generate a file for one day of transactions. The Interactive Payment Accounting Report allows you to manually generate a file that includes transactions from a range of dates, however it is recommended to limit the time frame to avoid the report generation taking very long. This report cannot be scheduled for automatic generation.

Download the IPAR for invoice reconciliation

1. Log in to your Customer Area.
2. Go to Reports > Interactive payment reports.
3. Select Generate Report, choose the date range that matches the invoice.
   Tip: Select the dates from the first of the month (00:00) until the first of next month (00:00) in (CET - time) when you’re downloading the IPAR. This will ensure transactions in the last minute of the month (23:59) are included. The timezone setting CET matches with the invoice period. 
   
4. Select the all events, and at least the following events: Received, Authorized, SentForSettle, Settled, SentForRefund, Refused.
5. Select Generate report.

Tip: Select the dates from the first of the month until the first of next month (CEST - time) when you’re downloading the IPAR.

Reconciling fees in

When reconciling certain fees:

• Processing fees: select statuses Received and SentforRefund. 
• Payment method fees: select statuses Settled and SentforRefund, Refunded and Chargeback (including Chargeback and ChargebackReversed if relevant’). 
• Revenue protect fees: select statuses Received. 

The payment life cycle graph below provides insights on when a fee is charged. This can help in selecting the correct filters to reconcile your invoice. 

Note: Received transactions which have been Refused will also be charged with Processing fees. However, this is done at the end of the month when the invoice is generated. This means that the IPAR will not show the processing fees of these Refused transactions (blank in the report). 

Once you download the report, follow our step by step guide to learn how to reconcile your invoices with Adyen.

Note: It is possible to have remaining open captures from the previous month. These won't show in the IPAR. To solve this, go to the Monthly finance report open balances tab, and see if you can match SentForSettle payments in the Interactive payment accounting report. Look for all payments that do have a SentForSettle journal, but not Settled journal. The Interactive Payment Accounting report (IPAR) will help you reconcile accurately the “Already Deducted” section of your invoice. 

Differences between ‘Already deducted’ amount and the ‘Calculated’ amount

The ‘already deducted’ amount is the amount that we have successfully deducted from your settlements throughout the month. The ‘calculated’ amount is the total of fees registered for your account in a particular month. There might be some differences between what has been already deducted and the final calculation. This can be due to the following fees. 

Processing Fees 

The difference can be due to one of the following:

• Fees not triggered during the month: Processing fees are generally triggered on Received and SentForRefund, nevertheless when the payment method variant is not fully recognized or the transaction undergoes a minor time out, the fees are not triggered, therefore not deducted. Nevertheless, the journal is recognized. That is the reason why you might see the same Count of transactions but different fees. When the billing job is done, all journals are ‘stamped’ with their price.
• Rounding: During the month the fees are rounded to 2 decimals, so if your fee is a blend rate of 0.064, the report will display 0.06. This leads to small discrepancies, nevertheless when we run our billing jobs the journals are correctly priced with the agreed rate.
• Tiering: To make billing straightforward, the highest tier is deducted during the month. When you reach a higher tier, this is also applied during our billing job, where we separate tiers and the pricing is applied accordingly. 

Payment Method Fees

The Authorization scheme fees are scheme fees on non-settled transactions that Adyen passes on as part of our iInterchange++ model.
Journals such as Canceled, Refused, Refused, Retried also generate fees, nevertheless we are not able to deduct them during the month as we do not have the exact costs, they are only added once the schemes pass them on to us and added to your invoice.
Tiering and Rounding can also play a part here. 

Management Fee and Network Tokenization Services

C-Level is defined as capture only service level, which essentially means that Adyen does not acquire any funds for the merchant, but solely acts as a payment gateway. Thus, Adyen is not in the money flow.
Tokenization is a process of replacing sensitive data with non-sensitive data. In the payments industry, it is used to safeguard a cardholder’s PAN (Payment Account Number - the 16-18 digits on the front of their card) as well as IBANs, by replacing these values with a unique string of numbers.
We do not deduct these fees and are only added to your invoice.

Taxes

We do not deduct taxes during the month. These are calculated based on the total amount of fees generated throughout the month. 

Non-Transactional Scheme Fees

The majority of scheme fees are assessed by Adyen on a per-transaction basis, but some cannot be accurately assessed at the time a transaction is processed. As an exception, these scheme fee charges will be calculated afterwards on previously completed transaction volumes. When applicable, these fees are charged by Adyen on your invoice for the next month.

These fees can be reconciled using the Non-Transactional Scheme Fee Report available in the Customer Area.

Further information about non-transactional scheme fees can be found on this article.

Amount Due

The amount due is the difference between what has been deducted during the month and the final calculation. You can find more information on how to pay the amount due in this article.