Reconciliation is the process of a Partner reporting daily revenues and the applied split value (payment to Liberis) known overall as a 'transaction', to Liberis through varied channels. The applied split value is used either to state:
- an expected payment (Unsettled)
- to roll down the balance after the payment has been reconciled against Liberis' bank account (Settled)
- simply state revenue of a merchant in the case of a VDD repayment mechanism (Revenue)
Each reported transaction must contain a type, which states what to do with the data reported.
Transaction types
Unsettled
Daily report of a customers repayment amount and net value for the previous day. Allows Liberis to keep track of customer performance and any discrepancies between the expected balance, and actual balance due to the fluctuation of the repayment value (based on Partner debt collection/repayments). DOES NOT roll down amount left on contract.
Repayment Calculation (Unsettled)
Previous days revenue = 1000
Split = 20% (0.2)
1000 * 0.2
-> repaymentAmount = £200 cal
Settled
Report of a customers settled value based on the Partners settlement period. Partner will sum the calculated repayment amounts since the last settlement and send that value to the Liberis bank account. The Partner will then submit a ‘Settled’ transaction with the batch number of the payment to Liberis and split values. This is stored by Liberis and DOES roll down the amount left on the contract.
The ‘Settled’ transaction type ultimately allows reconciliation and repayment of the advance. When a Partner settles and submits a ‘Settlement’ transaction, Liberis will reconcile the payment with a payment made to the Liberis bank account by cross referencing the Batch Number on the settlement record with the payment reference in the bank account
Repayment Calculation (Settled)
Total of settlement period = 7000
Split = 20% (0.2)
7000 * 0.2
repaymentAmount = £1400
Revenue
Report of a customers daily revenues without the application of a split. This is used to build an understanding of a merchants performance over a period of time, after which Liberis will apply the split and charge the merchant based on the sum of the reported revenue divided by the deal split percentage. An example of this use case is in a Variable Direct Debit product.