Example: E Commerce

Ecomm Three way reconciliation

Three-way reconciliation verifies the flow of money across three systems to ensure financial accuracy. For e-commerce this commonly means:

• Order Management System (OMS) — customer orders and fulfillment

• Payment Service Provider (PSP) — payment processing & settlements

• Bank — actual cash deposits

How we will solve it:

• We run two recon processes: Order → PSP and PSP → Bank

• Steps: define accounts, define rules, ingest data, create expectations, match & post

• Outcome: every order creates an expectation to PSP; matched PSP creates an expectation to Bank; matched Bank closes the three-way flow

Step 1: Account Setup

Account Structure:

• Orders Account (Credit type)

  • Tracks customer order values

• PSP Settlement Account (Debit type)

  • Tracks payment processor settlements

• Bank Account (Credit type)

  • Tracks actual cash received

Configuration:

• Orders Account: account_type: Credit, currency: USD

• PSP Settlement Account: account_type: Debit, currency: USD

• Bank Account: account_type: Credit, currency: USD

Step 2: Reconciliation Rules Configuration

Rule 1: Order-to-PSP Matching

Purpose: Match customer orders with PSP payments. Rule Settings:

• Name: "Order to PSP Reconciliation"

• Priority: 1

• When to Apply(Filter): Transaction type equals "customer_order"

• How to Find Match: Use order_id to find PSP transaction with same original_reference

• What to Verify:

• Order amount = PSP gross amount

• Order currency = PSP currency

• Order ID = PSP original reference

Rule 2: PSP-to-Bank Matching

Purpose: Match PSP settlements with bank deposits. Rule Settings:

• Name: "PSP to Bank Settlement"

• Priority: 1

• When to Apply: Transaction type equals "psp_settlement"

• How to Find Match: Use settlement_batch_id to find bank transaction with same batch_reference

• What to Verify:

• PSP net amount = Bank deposit amount

• PSP currency = Bank currency

• Settlement date = Bank value date

Sample transaction journey (state transitions, concise)

1. Order ingested (OMS) — order_id=12345, amount $100 → Staged (PENDING).

2. Rule 1 applies → create Expectation (Order→PSP, EXPECTED) for $100.

3. PSP webhook — { gross_amount: 100, net_amount: 95, fee: 5, original_reference: 12345 } → engine finds expectation → Expectation POSTED; create Expectation (PSP→Bank, EXPECTED) for $95.

4. Bank file — { amount: 95, batch_reference: "BATCH-456", value_date: 2024-01-15 } → Rule 2 matches expectation → Expectation POSTED → Three-way RECONCILED / CLOSED.