What is Order–settlement–bank reconciliation?

What it is

An ecommerce sale passes through three systems, and each keeps its own record:

1. Orders: your store, or the marketplace's order report: what was sold, to whom, at what price.
2. Settlements: the marketplace's settlement report, or the payment gateway's report: what was deducted and what was paid out, against which orders.
3. Bank: the credits that actually reached your account, with a reference number.

A three-way reconciliation links each order to its settlement line, and each settlement to its bank credit.

What it finds

• Orders never settled: delivered but missing from settlements.
• Fees that look wrong: commission on the wrong rate card, shipping at the wrong weight, fees charged twice.
• Returns not credited back: refunds deducted without the stock coming back, or reimbursements not paid.
• Settlements not received: reported as paid but not found in the bank.
• Tax deductions: TCS and TDS that should appear on the GST portal and in Form 168.

How to do it

1. Download order, settlement and bank data for the same period.
2. Match orders to settlement lines by order ID.
3. Match settlement totals to bank credits by settlement or UTR reference.
4. List every difference, give it a reason, and either claim it, correct it or write it off with approval.
5. Carry open items forward and clear them in later periods.

Done weekly, gaps are found while the marketplace still accepts claims. Marketplaces set their own time limits for disputes and reimbursement claims, so check each one's policy.