Reconciliation Process

Definition –

Reconciliation is the process of matching transactions that have been recorded internally
against monthly statements from external sources such as banks to see if there are
differences in the records and to correct any discrepancies.

Overview –

Reconciling your accounts is important because it helps to detect any mistakes,

discrepancies, or fraud in your accounting books that could severely impact the financial
health of your company.

For example, the internal record of cash receipts and disbursements can be compared to
the bank statement to see if the records tally with each other. The process of reconciliation
is to match the receipts of amount in our account from partner aggregators/banks with our
transaction data and payment of amount from our account to merchant with our merchant
settlement data.

There are five main types of account reconciliation: Bank Reconciliation, Customer
Reconciliation, Vendor Reconciliation, Inter-Company reconciliation and business-specific
reconciliation.

We are dealing with Bank reconciliation and intercompany reconciliation.

Benefits of Reconciliation –

Reconciliation assists you in spotting fraud and reducing the risk of transactions that could
cause penalties and late fees. It offers several advantages to a business which includes:

1. Detecting errors: A reconciliation helps you in spotting accounting errors that are
common to every business. These mistakes include errors such as addition and
subtraction, missed payments and double payments.

2. Tracking interest and Fee: Bank or Payment Gateway might add interest payments,
fees or penalties to your account. Monthly and daily reconciliation allows you to add
or subtract such amounts in your Books.

3. Detecting Fraud: Reconciliations statement help you in detecting and spotting

fraudulent transactions.

4. Tracking receivables: Reconciliation allows you to confirm all your receipts, assisting
you to avoid awkward situations and identifying entries for receipts that you didn’t
deposit.
 Lyra Merchant Report –

 Transaction – Lyra transaction id.

 Order – Lyra transaction id
 Type – Transaction type
 Payment Date – Transaction perform date.
 Status – Actual transaction status.
 Payment amount – Transaction amount for particular transaction.
 Captured Date – The actual transaction date when the transaction is performed.
 Terminal ID (TID) – Lyra assigned no.
 Reconciliation status – The Payment status for the said transaction.
 Reasons of chargeback – Reason code / Reason Description of chargeback.
 Payment Method – This indicates the transaction is perform network such as Visa,
Master, Rupay, IB (Internet Banking).
 Card Number – It’s provided the Masked Card no for Customer made transaction.
 Exp date – Customer Card expiry date mentioned on card no.
 Type of product – It refers to Customer make payment by which mode (Debit Card,
Credit card).
 Buyer – Customer Name will reflect here.
 Buyer e-mail address – Customer email address.
 Buyer address – Customer address (Need to clarify with Lyra).
 Buyer address line - Need to clarify with Lyra.
 Buyer Country – Customers country (Need to clarify with Lyra).
 3DS result – Need to check with Lyra.
 Lability shift – Need to check with Lyra.
 Risks – Need to check with Lyra.
 Card number control - Need to check with Lyra.