Shopify Website Reconciliation with EasyEcom, Payment Gateways and COD Partners

Building an online store can be quite a challenging task, especially for small companies. Many entrepreneurs prefer to outsource these kinds of things so that they can focus on what their core competency is. That’s where software like Shopify comes in. Shopify helps businesses build online stores and gives them the ability to make their business available online. Additionally, having a secured e-commerce portal is something that can be quite challenging and often time-consuming to set up. Whereas securing your store using Shopify may be a more secure solution than attempting to do it yourself. As you’ll need to invest considerable funds and need digital marketing/e-commerce expertise in order to have an adequately secure e-commerce website. Doing this may take months or years before it achieves optimum levels of security protection.

Shopify has become extremely popular because of the features it provides to its users. The features include the one-click buying, easy customization and customer service assistance to name a few. There’s an easy-to-use trial period for 14 days where all the features are available for use. After which you may subscribe and pick the pricing plan which works best for your business (Shopify offers three plans which are tailored to different types of businesses).

Different eCommerce companies that use Shopify to build their online store often use different payment gateways and COD vendors. Which can be difficult for finance departments who have to verify reports from all vendors within this ecosystem. This can lead to human errors or time wasted in checking if all the amounts paid or charged are accurate.

Problems Encountered in Website Reconciliation Process

  • Multiple reports from different partners
  • Interpreting the various reports
  • Difficulty in sharing reports with the employees as there are too many reports
  • Checking and keeping track of various excel sheets
  • Having to repeat this complicated process every month
  • Investing extra funds to acquire more staff to carry out this process

Taking into account all the problems faced in the website reconciliation process, companies need to a way to simplify this process. Hence companies can use Cointab’s software which can easily connect Shopify, any Order Management System, Payment Gateway, Cod vendors and the bank to one another, so as to create a comprehensive report of what has happened from every angle. It integrates all the entities to reconcile all payments in a way that is easy for anyone to read and understand, but also enables you to easily access the information that matters most.

Pros of using the Cointab Software for Website Reconciliation

  • Linking all the reports from different vendors
  • Verification of payments and orders
  • Automated production of the final result
  • Provides Technical Assistance
  • Ease of sharing the report with the whole team

RECONCILIATION PROCESS

Scope / Entities

  • Shopify

Customers will often go to the Shopify site to browse for their purchases. Customers add a product to their shopping cart and then they are redirected to the checkout where they can choose from either paying online instantly via credit or debit card or paying cash on delivery if it is available. Shopify also produces its report to keep a track of every transaction that happens.

  • EasyEcom order management system

EasyEcom keeps a track of all the orders placed from the Shopify website, it also keeps a track of the payments made by the Payment Gateway partner and the COD partner.

Our software then helps reconcile EasyEcom’s Reports against the Payment Gateway partner and the COD partners report.

  • Payment gateway

 Payment gateway is a software that provides the service of allowing payments through debit card, credit card, net banking etc.

Our software reconciles the payment gateway report with the EasyEcom report and the bank statement. This is used to check the payments made by the payment gateway partner on the orders fulfilled.

  • COD remittance

The other option that people use to pay is cash on delivery for which companies partner with a COD vendor who then later makes the payments received to the company’s bank account. The COD vendor makes the COD remittance report to keep track of the payments and orders placed.

Our software reconciles the COD remittance report with the EasyEcom Report and the bank statement to check if the payments are made rightly.

  • Bank Statement

It is used to check if the required amount to be paid by the COD or Payment gateway partner actually recaches the company’s bank account.

Cointab’s software reconciles the bank account with company’s internal reports , EasyEcom report, Payment Gateway report and the COD remittance report to check if the amounts paid are right or if amount is left unsettled.

Reports Used For Reconciling:

  • Shopify order report

This report keeps a record of all the orders placed on the Shopify website during a given period of time. It is used to reconcile against the EasyEcom order report.

  • EasyEcom order report

This report keeps a record of all the orders placed on the Shopify website which are recorded by the EasyEcom order management system. It is used to reconcile all orders against the Shopify Order Report.

  • EasyEcom Sales tax report

This is a tax report filled while dispatching each order.

  • EasyEcom Return tax report

This is a tax report filled when received a product back (customer return / RTO)

  • EasyEcom Cancellation tax report

It is a tax report filled for orders which were made and then cancelled.

  • EasyEcom SKU master

It is a record of the number of products that are kept in stock and the respective product details.

  • Payment gateway settlement report

This report is used to reconcile with the bank statement and the EasyEcom report

  • Payment gateway rate card

This is the rate card that consists of the tax rates to be charged on every purchase made by customers through the payment gateway.

  • COD remittance reports from courier partner

This report is a record of all the payments made by customers through the Cash on delivery method which the COD partner has to pay back to the company.

  • Bank statements

This is used to check if payment gateway or COD partners have paid the promised amount to the company’s bank account.

Reconciliation Result:

Shopify vs EasyEcom Reconciliation

Forward Reconciliation

Found in EasyEcom Order Summary-

Our software compares the Shopify report with the EasyEcom report and shows in this box the orders that match and are found in both the reports. This bucket shows those orders which are fulfilled and for which the company will receive payment.

Not Found in EasyEcom Order Summary-

Our software compares the EasyEcom report and the Shopify report and the orders that are not found in the EasyEcom report are displayed in this box. This is a list of orders that will not be completed because they were not included in the EasyEcom report. As a result, the organisation must carefully review these orders.

Not Found in EasyEcom Order Summary (Cancelled)-

The EasyEcom and Shopify reports are compared by our software, and orders that are not discovered in the EasyEcom report and were later cancelled are presented in this box. This indicates the orders that will not be completed since they are not registered in the EasyEcom report, but they are not a concern because they were subsequently cancelled.

Backward Reconciliation

Found in Shopify Order Summary-

Our software compares the EasyEcom report with the Shopify Report and shows in this box the orders that match and are found in both the reports. This feature shows those orders which are fulfilled and for which the company will receive payment.

Not Found in Shopify Order Summary-

These are the orders did not originate from the Shopify site, So the software assists in displaying that completed orders for which money will not be received. This is highlighted so that company can check these orders.

EasyEcom vs Payment Gateway (example: Razorpay)

Forward Reconciliation

Reconciled in PG:

The EasyEcom report and the Payment Gateway report are compared by our software, which reveals that the transactions recorded by EasyEcom and the payment gateway are identical. This is a useful bucket because your business needs to know that all payments made through the payment gateway were received.

Less Payment Received in PG:

The EasyEcom report and the Payment Gateway report are compared by Cointab’s software, revealing which payments have not been received. When the sale amount in EasyEcom exceeds the amount recorded by the payment gateway, it signifies that the funds received are less than the amount expected from the Payment Gateway partner.

More Payment Received from PG:

This indicates that the amount entered into EasyEcom is lower than the amount entered into the payment gateway. When the company is made aware of the amount beforehand then the additional amount can be returned and faster support to can be given to customers.

Missing in Payment Gateway:

This bucket displays orders that are not documented in the payment gateway report, indicating that these orders were fulfilled but money was not paid by the payment gateway . As a result, the organisation must carefully review these orders.

Backward Reconciliation

Found in PG:

 This bucket shows prepaid orders for which payment will be received from the payment gateway partner.

Missing In PG:

Cointab’s software compares the Payment Gateway Report with the EasyEcom report and shows the orders that are not found in the payment gateway report.  This bucket shows prepaid orders for which payment has to still be received from the payment gateway partner.

Found in EasyEcom:

Our software compares the Payment Gateway Report with the EasyEcom report and shows the orders that are found in EasyEcom. Which means for these prepaid orders payment gateway partner has paid the required amount.

Not Found In EasyEcom:

Cointab’s software compares the Payment Gateway Report to the EasyEcom Report and displays any orders that aren’t in the EasyEcom Report. This bucket displays prepaid orders that will not be completed but for which the payment gateway partner will make payment. As a result, the organization must carefully review these orders or risk losing clients.

Reconciled with EasyEcom:

Our software compares the Payment Gateway Report with the EasyEcom report and the orders that are same in both the reports are shown here. This feature helps the company know that payments made are correct.

More PG amount Less EasyEcom amount:

Cointab’s software compares the Payment Gateway Report with the EasyEcom report and shows the orders for which the payment gateway has made more amount of payment than required.

Less PG amount More EasyEcom amount:

Cointab’s software compares the Payment Gateway Report with the EasyEcom report and shows the orders for which less amount is recorded in the payment gateway report than in the EasyEcom report. This means that the payment gateway has made less amount of payment than required so the company has to keep a track of the amount pending.

Payment Gateway Fee Verification

Fee Overcharged: 

Our software highlights instances in which the fee levied by the Payment Gateway partner exceeds the amount agreed upon in the business agreement. This function is beneficial since it alerts the company if they are being overcharged and allows them to avoid paying more than is necessary.

Fee Undercharged:

Our software displays the number of transactions and amounts for which the fee charged by the Payment Gateway is lower than that agreed-upon. This informs the company of the undercharged amount, ensuring that they do not break the contract. .

Tax Overcharged:

Cointab’s software flags transactions when the tax levied by the Payment Gateway is more than the amount specified in the contractual document.The tax levied is first validated by comparing it to the rate card. The overcharged amount is calculated and displayed in this box.

Tax Undercharged:

Displays transactions where the tax charged by the Payment Gateway is less than the amount specified in the business agreement. It is calculated at 18% of the fee charged. This is then reviewed using the rate card. When the tax amount is less than the settlement amount, it means the tax was undercharged, as shown in this row.

Settlement Amount Match:

The amount collected from the customer minus any fees and taxes should be the settlement amount. The system will display settlement amount match for all rows where the calculated settlement amount match the amount given by the payment gateway directly.

Settlement Amount Mismatch: 

Using the above calculation the system will display settlement amount mismatch for all rows where the calculated settlement amount does not match the amount given by the payment gateway directly.

Rate Card Unknown:

This shows the transactions for which the customer opted to pay through a consumer payment app, which the payment gateway partner did not have in the rate card.

Payment Gateway vs Bank Statement

Forward Reconciliation

Found in Bank Statement:

This shows the transactions that are settled in the bank from the payment gateway partner. This helps keep a track of the amount actually received in the bank account for the orders fulfilled.

Not Found in Bank Statement:

This shows the transactions that is not settled in the bank from the payment gateway partner. This helps keep a track of the amount pending to be received in the bank account for the orders fulfilled.

Backward Reconciliation

Total PG Transactions:

This shows the total transactions for which customers opted to pay through the payment gateway method which are recorded in the bank statement.

Total Reconciled PG Payments:

This bucket shows your company all the purchase payments made via the payment gateway were actually received in the company’s bank account.

Less Payment Received PG:

Our software shows orders for which the payments received are less than how much was supposed to be received from the Payment Gateway partner.

More Payment Received PG:

This shows the amount recorded in Bank Statement is less than the one recorded by the payment gateway. This bucket helps find out if the payment gateway has paid more than the required amount and if so company can refund it back.

Missing in Payment Gateway:

This bucket shows the orders that are not recorded in the payment gateway report after comparing with Bank Statement.

EasyEcom vs COD Remittance (Example: ShipRocket)

Forward Reconciliation

Reconciled with COD:

Cointab’s Software shows orders where the amount recorded by EasyEcom and the amount recorded in COD remittance are the same , so these payments are reconciled.

Less Payment Received in COD:

Cointab’s Software shows orders for which amount recorded in EasyEcom is more than the one recorded by COD remittance. It means the payments received are less than how much was supposed to be received from the COD.

More Payment Received in COD:

This shows the amount recorded in EasyEcom is less than the one recorded by COD remittance. This feature helps find out if customers have paid more via COD which in turn will help provide quicker assistance to customer problems if the company is made aware of the amount beforehand.

Missing in COD:

This box shows the orders that are missing from the COD remittance report after comparing with the EasyEcom report it shows the post-paid orders that are not recorded in the COD remittance. these payments are still to be made by the COD partner

Backward Reconciliation

Found in EasyEcom Order Summary

Comparing the COD Remittance report against the EasyEcom Software and the orders same in both the reports are shown here. It means that orders are completed and payment is also received for the same from the COD partner.

Not found in EasyEcom Order Summary:

Comparing the COD Remittance report against the EasyEcom Software and the orders not found in EasyEcom are shown here. It means that these orders are not completed and they do not exist in the EasyEcom system and but payment is received for them from the COD partner.

COD Remittance vs Bank Statement

Forward Reconciliation

Found in Bank Statement:

Our software compares the COD remittance Report with the Bank statement and shows that the COD vendor has paid the company for orders completed.

Not Found in Bank Statement:

These are the prepaid completed orders which company has not been paid for by the COD partner. This bucket is important as it informs the company which orders payments are still pending.

Backward Reconciliation

Total COD Transactions:

This shows the total transactions recorded in the bank statement which are made COD partner.

Total Reconciled COD Payments:

Cointab’s Software compares the Bank Statement and the COD remittance report and shows the amount is same in both reports. This bucket shows the company the payments made via COD partner that were actually received in the company’s bank account.

Less Payment Received COD:

Cointab’s Software compares the Bank Statement and the COD remittance report and it shows the amount recorded in Bank Statement is less than the one recorded by the COD partner it means the payments received are less than how much was supposed to be received from the COD partner in company’s bank account.

More Payment Received COD:

This shows the amount recorded in Bank Statement is more than the one recorded by the COD partner. This bucket helps find out if the COD partner has paid more than the required amount.

RECONCILIATION RESULT:

The above-given tables show the reconciliation result after using Cointab’s software for the reconciliation process. A comprehensive report is produced after analysing the EasyEcom report, payment gateway report, cod remittance report, company’s internal report and the bank statement. The result is shown in a simple, easy to understand format. After which the company’s finance teams can keep a track of the payments made, fees charged, and orders placed and use it to have a more seamless reconciliation process.

So, if your company wants to make its business operations more efficient and accurate Cointab’s software is what you are looking for!

Get Started with Cointab!

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