# Reconcile with Checkout.com

Reconciliation is a crucial part of your business's bookkeeping process.
You can reconcile your [balances](https://www.checkout.com/docs/funds-management/manage-funds/balances.md), [fee categories](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/breakdown-types.md#Fees), financial actions, [invoices](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/invoices.md), and [settlements](https://www.checkout.com/docs/funds-management/receive-settlements.md) with Checkout.com using the following reports:

- [Balance Breakdown Report](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/balance-reports/balance-breakdown-report.md)
- [Balance Report](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/balance-reports/balance-report.md)
- [Financial Actions by Date Range Report](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/balance-reports/financial-actions-by-date-range-report.md)
- [Financial Actions by Payout ID Report](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/settlement-reports/financial-actions-by-payout-id-report.md)
- [Payouts Report](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/settlement-reports/payouts-report.md)
- [Settlement Breakdown Report](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/settlement-reports/settlement-breakdown-report.md)
- [Settlement Statement](https://www.checkout.com/docs/funds-management/retrieve-financial-reports/settlement-reports/settlement-statement.md)

> **Information**
>
> Sub-accounts are referred to as currency accounts in all reports.

---

## Reconcile balances

### Reconcile the closing Available and closing Pending balances

In the Balance Report, you can use the _Balance Type_ field to identify if the funds entered the _Pending_ or _Available_ balance.

To calculate your closing _Pending_ balance for a sub-account:

1. Filter the _Balance Type_ field to `Pending`.
2. Add this to the _Opening Pending Balance_.
3. From that total, subtract the _Transitioning Balance_ to get your closing _Pending_ balance.

To calculate your closing _Available_ balance for a sub-account:

1. Filter the _Balance Type_ field to `Available`.
2. Add this to the _Opening Available Balance_.
3. From that total, subtract the _Transitioning Balance_ to get your closing _Available_ balance.

> **Information**
>
> Funds that are ready for settlement move from _Pending_ to _Available_ at midnight.
> The [settlement speed](https://www.checkout.com/docs/funds-management/receive-settlements.md#Settlement_speed) of T+X is reflected in the difference between the _Processed On_ and _Available On_ fields.
> However, some transactions, like adjustments and merchant payouts, enter _Available_ directly, and therefore have the same timestamp in both _Processed On_ and _Available On_.

### Reconcile balances to financial actions

You can use the Balance Report and the Financial Actions by Date Range Report to reconcile all monetary inflows and outflows for your sub-account balances.
Ensure that both reports cover the same reporting period, by checking the date range suffix on the filenames.

1. Filter the downloaded Financial Actions by Date Range Report by the _Currency Account ID_ field for the sub-account you want to reconcile with.
2. Check that the aggregate sum of the _Holding Currency Amount_ field matches the difference between the sub-account's _Opening Available Balance_ and _Closing Available Balance_ in the Balance Report.

For example, for sub-accounts `ca_qkvnzb2cudpezobj4epdcip3qa` and `ca_5t4grohxtacebfmuelz7mtsaem`, this sample Balance Report shows a difference between the _Opening Available Balance_ and the _Closing Available Balance_ of 850.70 GBP and 1304.11 USD, respectively.

![A Balance report with two unique currency account IDs and their respective opening and closing available balances highlighted](https://www.checkout.com/docs/NAS/Reporting/Balance_report.png)

These values match the _Holding Currency Amount_ field in the sample Financial Actions by Date Range Report for the respective sub-accounts for the same period:

![A Financial Actions by Date Range report with the matching currency account ID values for each financial action and their respective holding currency amounts highlighted](https://www.checkout.com/docs/large-media-assets/Financial_Actions_by_Date_Range_report.png)

### Reconcile balances to fee categories

The Balance Report breaks down the different categories of fees charged to a sub-account over a given period. Each fee category is further broken down by the _Payment Method_.

You can reconcile the financial actions that make up the fee categories using the Financial Actions by Date Range Report.
For each row, the _Action Type_ and _Breakdown Type_ together map to a fee category field on the Balance Report.

1. Filter the downloaded Financial Actions by Date Range Report by the _Currency Account ID_.
2. Further filter by _Payment Method_, if applicable. For example, `Visa`.
3. Filter by _Action Type_ to include only `Authentication`, `Authorization`, `Capture`, and `Void` actions.
4. Filter by _Breakdown Type_ to include only `Scheme Fixed Fees` and `Scheme Variable Fees`.
5. Check that the _Holding Currency Amount_ field matches the relevant fee category field displayed on your Balance Report. For example, _Card Payment Scheme Fees_.

---

## Reconcile financial actions

### Reconcile financial actions to settlements

To reconcile the financial actions that make up a specific settlement payout, match the payout ID from the Payouts Report to the filename in the Financial Actions by Payout ID Report.

For example, payout ID `000G7HDD96SH` on November 16 matches the filename `financial-actions_{your entity ID}_20221116_000G7HDD96SH_1.csv`.

### Reconcile financial actions to payout amounts

The _Payout Amount_ field for a settlement payout in the Payouts Report matches the sum of all values in the _Holding Currency Amount_ field in the Financial Actions by Payout ID Report, rounded down to two decimal places.

For example, payout `000G7HDD96SH` in this sample Payouts Report has the amount 1304.11 USD:

![A Payouts report with a payout ID and its respective payout amount highlighted](https://www.checkout.com/docs/NAS/Reporting/Payouts_report.png)

This amount matches the total _Holding Currency Amount_ in the sample Financial Actions by Payout ID Report:

![A Financial Actions by Payout ID report with the matching payout ID values for each financial action and their respective holding currency amounts highlighted](https://www.checkout.com/docs/large-media-assets/Financial_Actions_by_ID_report.png)

> **Information**
>
> Because payout amounts are rounded down, any remainder is carried forward to the next settlement.

### Reconcile financial actions to fee categories

The Payouts Report breaks down all fees charged and adjustments applied for processing payments with Checkout.com.

For each row on the Financial Actions by Payout ID Report, the _Action Type_ and _Breakdown Type_ together map to a fee category field in the Payouts Report.

To reconcile the financial actions that make up a fee category:

1. Filter the downloaded Financial Actions by Payout ID Report by the _Action Type_ field to include only `Authentication`, `Authorization`, `Capture`, and `Void` actions.
2. Filter the report by the _Breakdown Type_ field to include only `Scheme Fixed Fees` and `Scheme Variable Fees`.
3. Check that the sum of the _Holding Currency_ field matches the fee category amount in the Payouts Report.

---

## Reconcile invoices

You can reconcile all fees you've been charged during the month in your invoice to:

- Balances – Use the Balance Report.
- Financial actions – Use the Financial Actions by Date Range Report.

The report frequency must be monthly in line with invoices. You must generate the reports in UTC the same as Checkout.com invoices to avoid discrepancies.

> **Information**
>
> To change your report frequency to monthly, contact your account manager or [request support](https://dashboard.checkout.com/support/new?topic=case_account_management_and_access&issue=issue_account_changes).

> **Note**
>
> You cannot reconcile invoices to the Payouts Report or Settlement Statement because settlements paid out in one month can include fees charged in another month.
>
> For example, a settlement paid out on March 1 includes fees charged on February 28. Your Settlement Statement for March therefore does not reconcile with your March invoice.

### Reconcile to balances

1. Filter the downloaded Balance Report by the _Holding Currency_ field to the currency of the invoice you want to reconcile with.
2. Check that the total of all the fee categories matches the _Total_ fees charged on your invoice.
3. If your invoice includes tax, check that the sum of the _Tax_ field and the total fees from your Balance Report match the _Total incl Tax_ fee on your invoice.

### Reconcile to financial actions

1. Filter the downloaded Financial Actions by Date Range Report by the _Holding Currency_ field to the currency of the invoice you want to reconcile with.
2. Filter the _Breakdown Type_ field to all fees categories.
3. Add together all the values in the _Holding Currency Amount_ field.
4. Check that the total matches the _Total_ fees charged on your invoice.

---

## Reconcile settlements

### Reconcile settlements to your bank account

Each settlement payout on your bank statement or transaction history is identified by the unique 12-character payout ID from the Payouts Report. For example, `000G7HDD96SH`.

1. For each payout ID on your statement, look up the _Payout Amount_ field in the Payouts Report for the date range when you received the payout in your account.
2. Check that each payout amount on your bank statement matches the amount in the report.

---

## Related topics

- [Breakdown types](https://www.checkout.com/docs/funds-management/reconcile-with-checkout-com/breakdown-types.md): Learn about the different breakdown types and fee categories in reports and invoices for reconciliation.
- [Exchange (FX) rate fee](https://www.checkout.com/docs/funds-management/reconcile-with-checkout-com/exchange-fx-rate-fee.md): Learn more about Checkout.com foreign exchange (FX) rate fees.
- [Scheme fee adjustments](https://www.checkout.com/docs/funds-management/reconcile-with-checkout-com/scheme-fee-adjustments.md): Learn more about scheme fee adjustments and how they're calculated.