n the age of digital commerce, it is tough to build online stores, especially for small companies. Building your own store online can prove quite challenging. So that’s where a software like Shopify comes into play; it builds an online store for companies who want to run their business through a website. Many companies prefer using Shopify to build their online store rather than doing it themselves as technical expertise and more funds are required to build an online store from scratch. Shopify might also be able to make your online store more secure than what you could achieve by yourself. Through Shopify, companies can sell, deliver and promote their products to the customers. Shopify has become popular due to its spectacular features which are low barrier entry, easy to use, minimal initial investment and constant technical support. However, to avail of Shopify’s features, a 14-day trial is offered and after that, if the company likes the platform they can subscribe to the pricing plan which is most convenient to them.
Challenges faced in Website Reconciliation Process
- Different Settlement Reports
- Integration of websites with all other Software
- Manually downloading data from different portals
- Checking multiple excel sheets
- Difficulty in analyzing reports
- Impediment in sharing reports with employees
- Repetition of lengthy procedure again & again
Cointab’s Website Reconciliation software helps e-commerce companies reconcile their online transactions by linking Shopify, any Order Management System, Payment Gateway, COD vendors and the bank. By integrating all these systems Cointab’s software produces a comprehensive reconciliation report. Cointab’s software can easily configure any payment gateway’s settlement report, COD partner report, OMS report & then reconcile it with the internal report of any organization. It simplifies information processing and also produces the output information in such a way that’s easy to understand.
Pros of using the Cointab Software for Website Reconciliation
- Integration of website, order management system, payment gateway, cod partners reports
- Easy to understand the report
- Verification of orders placed
- Comparing payment gateway’s settlement report and internal report of Shopify
- Sharing and analyzing reports with colleagues becomes effortless
- No need to manually upload or send information
- Time-saving
RECONCILIATION PROCESS
Scope / Entities
Shopify
Customers purchase the things they need on the Shopify website. After adding to the cart, the customer gets redirected to the payment page where they can choose between two options i.e., Payment Gateway or COD. The Shopify website’s basic function is to facilitate purchases. It also produces its own report for all the orders made on its website.
Unicommerce Uniware order management system
Cointab reconciliation system can reconcile Shopify with any Order Management System. If you are using the Unicommerce Uniware order management system then our system can integrate with it too and help you reconcile it against Shopify as well as Payment Gateways and COD partners
Payment gateway
Payment Gateway is a service provider that authorizes debit card or credit card payments for online stores or e-businesses. Examples: Razorpay, Payu, Paytm, etc.
When the payment gateway option is selected for making a payment, an order ID and payment ID are generated to keep a track of payments. Cointab’s software checks and compares the payment gateway report against the Unicommerce report and the bank statement to make sure the amounts paid for each orders are right and we are getting the due settlement in the bank account.
COD remittance
COD is a payment option provided by e-commerce companies to customers. It is also known as Cash on Delivery means that when delivery is received cash will be paid. Companies partner with vendors for this process and they issue a remittance on a daily/weekly basis which is important for the reconciliation process. Cointab’s Software links the COD remittance file with Unicommerce reports and bank account statement to verify if we are receiving due amount in the bank account or not.
Bank Statement
Multiple transactions take place daily for a large company so it becomes necessary to see if the expected settlement amount of the transactions is in fact made to the bank account. For example, as the payment gateway and COD partners promise a certain amount to the company as per their settlement reports, it is necessary to check if the amount actually reaches the bank.
Cointab’s software reconciles this and it checks the Unicommerce report, the company’s internal report, Payment gateway reports, COD remittance reports and the bank statement and lets the company knows if any amount is left unsettled. This way the company can track the payments and know if all partners have settled correct amount. If any partner has settled incorrect amount or not settled yet then it easily gets highlighted.
Reports Used For Reconciling:
Shopify order report
This report contains all orders received in a given period on the Shopify website. It is used to reconcile orders with the Unicommerce order report.
Unicommerce order report
This report consists of all the orders made by customers on the company website which are recorded by Unicommerce in its order management system. This is used to reconcile all orders against the Shopify Order Report and partner reports.
Unicommerce sales tax report
This is a tax report filled while dispatching each order.
Unicommerce return tax report
This is a tax report filled when received a product back (customer return / RTO)
Unicommerce cancellation tax report
This is a tax report filled for orders which were made and then cancelled.
Unicommerce SKU master
It is a master SKU list with weight and volumentric deminstiaon of each product.
Payment gateway settlement report
This report is used to reconcile with the bank statement and the Unicommerce report
Payment gateway rate card
This is the rate card that consists of the fees 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 for 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 Unicommerce Reconciliation
Forward Reconciliation
Found in Unicommerce Order Summary:
Cointab’s software compares the Unicommerce report and the Shopify report and shows in this box the orders that match and are found in both the reports.
Not Found in Unicommerce Order Summary:
Cointab’s software compares the Unicommerce report and the Shopify report and the orders that are not found in the Unicommerce report are displayed in this box. This basically means that orders were received in Shopify but not recorded in Unicommerce hence they will not be fulfilled even though customers would’ve otherwise paid for those orders. So, the company has to manually check these orders.
Not Found in Unicommerce Order Summary (Cancelled):
Cointab’s software compares the Unicommerce report and the Shopify report and the orders that are not found in Unicommerce but are cancelled are displayed in this box. This feature basically shows the orders that would’ve not been fulfilled as they were not recorded by Unicommerce but then these orders were later cancelled so they do not cause any problems and can be ignored.
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Backward Reconciliation.
Total Shopify Transactions:
This shows the total number of transactions that are recorded in the Unicommerce report
Found in Shopify Order Summary:
Cointab’s software compares the Shopify report and the Unicommerce report and shows in this box the orders that match and are found in both the reports.
Not Found in Shopify Order Summary (PG):
Cointab’s software compares the Shopify report and the Unicommerce report and the orders that are not found in the Shopify report where the payment type recorded is prepaid. This feature shows the prepaid orders that are fulfilled for which payment will not be received from the payment gateway as these orders are not originating from the Shopify system. By displaying these orders in this box the company knows that these orders need to be checked.
Not Found in Shopify Order Summary (COD):
Cointab’s software compares the Shopify report and the Unicommerce report and the orders that are not found in the Shopify report where the payment type recorded is COD. This feature shows the post-paid orders that have been fulfilled but will not receive payment from the COD partner as these orders are not originating from the Shopify system. So that the company knows that these orders need to be checked.
Not Found in Shopify Order Summary (Cancelled):
Cointab’s software compares the Shopify report and the Unicommerce report and the orders that are not found in the Shopify report orders and are later cancelled are displayed in this box. This feature shows the orders which did not originate from Shopify and hence for which the company would not receive payment but these orders were then cancelled hence no problems occur.
Unicommerce vs Payment Gateway (example: Razorpay)
Forward Reconciliation
Reconciled with Payment Gateway:
Cointab’s Software compares the Unicommerce report and the Payment Gateway report and shows that the amount recorded by Unicommerce and the amount recorded by payment gateway matched. This is a useful feature as your company needs to know that all the purchase payments made via the payment gateway were actually received.
Example: Order amount Rs. 100, payment gateway collected Rs. 100 from customer
Less Payment Received from Payment Gateway:
Cointab’s Software compares the Unicommerce report and the Payment Gateway report and it essentially shows orders for which less payment is recieved from payment gateway.
Example: Order amount Rs. 100, payment gateway collected Rs. 90 from customer
More Payment Received from Payment Gateway:
Cointab’s Software compares the Unicommerce report and the Payment Gateway report and it essentially shows orders for which more payment is recieved from payment gateway.
Example: Order amount Rs. 100, payment gateway collected Rs. 110 from customer
Missing from Payment Gateway:
This box shows the orders that are fulfilled but for which payment is missing from the payment gateway.
Backward Reconciliation
Reconciled with Unicommerce Order Summary
Here Cointab’s Software compares the payment gateway report with the Unicommerce report and orders that match with the Unicommerce report are displayed in this box. This feature shows the orders which have been rightly paid for.
Less Amount Recorded in Payment Gateway
This bucket shows orders where amount recorded in payment gateway is less than Unicommerce amount.
More Amount Recorded in Payment Gateway
Here Cointab’s Software compares the payment gateway report with the Unicommerce report and orders for which more amount is recorded Payment Gateway report than the amount in the Unicommerce report is displayed in this box. This feature lets company know which orders they have received an extra amount from the payment gateway so that they can maintain their accounts correctly or refund the extra amount.
Not found in Unicommerce Order Summary
After comparing the payment gateway report with the Unicommerce report the orders not found in the Unicommerce report are displayed in this box. This feature lets the company know which orders will not be fulfilled but for which they received payment. This is an important value as not fulfilling customers’ orders that they have already paid for will make the company lose out on priceless customers.
Not found in Unicommerce Order Summary (Netoff)
Cointab’s software compares the Unicommerce report and the Payment Gateway report and orders which are not found in the Unicommerce report and cancelled are displayed in this box. This feature basically shows the orders that would’ve not been fulfilled as they were not recorded by Unicommerce but then these orders were auto refunded by payment gateway so they do not cause any problems and can be ignored.
Payment Gateway Fee Verification
Fee Overcharged:
Cointab’s software checks the payment gateway report and shows the transactions where the fee charged by the Payment Gateway partner are more than the agreed upon amount as per the business agreement. This feature is advantageous as its lets the company know if they are getting overcharged and avoid paying more than required.
Fee Undercharged:
Cointab’s software checks the payment gateway report and shows the of transactions where the fees charged by Payment Gateway is less than the one agreed in the business agreement. This feature is useful as it lets the company know the undercharged amount so that they won’t be in violation of the contract. They can also inform the payment gateway partner and build a trustworthy relationship.
Tax Overcharged:
Cointab’s software checks the payment gateway report and shows the transactions where the tax charged by Payment Gateway is more than the one agreed as per the business agreement. GST is taken as 18% of the fee.
Tax Undercharged:
Cointab’s software checks the payment gateway report and shows the transactions where the tax charged by Payment Gateway is less than the one agreed as per the business agreement. GST is taken as 18% of the fee.
Settlement Amount Match:
Typically, amount collected from customer – fee charges – tax should be settlement amount in the payment gateway settlement report. But it is very important to verify the same. Our software does this simple calculation and highlights if calculated settlement amount matches amount given by payment gateway directly.
Settlement Amount Mismatch:
In the above mentioned calculation, if the calculated settlement amount is not equal to the directly given settlement amount then it is a case of Settlement Amount Mismatch.
Rate Card Unknown :
This box shows any transaction which was performed using a payment mode for which we do not have rate card for verification.
Payment Gateway vs Bank Statement
Forward Reconciliation
Found in Bank Account:
This row shows the transactions for which the settlement amount is actually received in the bank. This helps companies to keep a track of the number of payments made and the amount received from the payment gateway partner.
Not Found in Bank Account:
This row shows the transactions for which the settlement amount is not received in the bank. This helps the company to know the number of transactions that have to still be made to the company’s bank account from the payment gateway partner.
Backward reconciliation
Total Payment Gateway Transactions:
Cointab’s software refers to the bank statement and checks the total number of transactions made by the Payment Gateway. .
Reconciled Payment Gateway Settlements:
Cointab’s software compares the bank statement with the payment gateway report and when bank credit amount matches with the promised settlement amount by the partner, the system calls them Reconciled
Less Payment Received Payment Gateway
After comparing the bank statement and the payment gateway report if it is seen that the amount of settlement made is less in the bank statement than that recorded in the Payment Gateway report, then that amount is displayed in this row. This feature helps company know by how much they are being underpaid by the payment gateway partner.
More Payment Received Payment Gateway
Cointab’s Software compares the bank statement and the payment gateway report and when the amount of settlement made is more in the bank statement than the payment gateway report then that amount is displayed in this row.
Unicommerce vs COD Remittance (Example: ShipRocket)
Forward Reconciliation
Reconciled COD Transactions:
This bucket shows the transactions where sale amount recorded in Unicommerce matches with COD remittance given by the partner.
Less Payment Received from COD Partner
This bucket shows the transactions where sale amount recorded in Unicommerce is more than the one recorded in COD remittance given by the partner. This says that partner collected less amount from the customer than required.
More Payment Received from COD Partner
This bucket shows the transactions where sale amount recorded in Unicommerce is less than the one recorded in COD remittance given by the partner. This says that partner collected more amount from the customer than required.
Missing COD Payment:
This bucket shows the transactions which have been fulfilled but for which the payment from COD partner is yet to be received.
Backward Reconciliation
Found in Unicommerce Order Summary:
Cointab compares the COD Remittance report against the Unicommerce Software and the orders that match are displayed in this row. This feature shows the postpaid orders that were fulfilled for which the company has received the payment from the COD partner.
Not found in Unicommerce Order Summary:
Cointab compares the COD Remittance report against the Unicommerce Software and the orders that are not found in the Unicommerce software after comparison are displayed in this row.
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COD Remittance vs Bank Statement
Forward Reconciliation
Found in Bank Statement:
Cointab’s software compares the COD remittance Report with the Bank statement and the orders paid for found in the Bank statement are displayed in this bucket. This value shows the post-paid orders that the company has fulfilled and they have received payment for these orders by the COD partner. This analysis is important as it informs company for which orders payments have been done right.
Not Found in Bank Statement:
Cointab’s software compares the COD remittance Report with the Bank statement and the orders not found in bank statement are shown in this bucket. This value shows the post paid orders that the company has fulfilled but has not received payment for by the COD partner as yet. By highlighting this value company knows exactly which order payments they need to check.
Backward Reconciliation
Total COD Transactions:
Cointab’s software compares the Bank statement with the COD remittance Report and the value of the total amount of remittance received via courier partners are shown in this box.
Total Reconciled COD Payments:
Cointab’s software compares the Bank statement with the COD remittance Report and when the amount of transactions matches in both the reports then that value is shown in this bucket. These are orders fulfilled for which the company has received payment by the COD partner.
Less Payment Received from COD Partner:
Cointab’s software compares the Bank statement with the COD remittance Report and when the amount received in the bank statement is less than the one recorded in the COD remittance report then those settlements are shown in this bucket. This feature shows the amount still pending to be paid by the COD partner.
More Payment Received from COD Partner:
Cointab’s software compares the Bank statement with the COD remittance Report and when the amount received in the bank statement is more than the one recorded in the COD remittance report then those settlements are shown in this bucket. This analysis shows the excess amount received from the COD partner.
RECONCILIATION RESULT:
Given in the above tables is the output after the information is run through Cointab’s Software. The whole reconciliation process beginning from the Shopify report – Unicommerce Report – Payment gateway – COD Remittance – Bank Statement are all displayed under their respective headers. The Cointab report is produced in a simple, easy to understand format. By using this software your business can be assured that all your internal data is reconciled with the data received by your partners. The output is given with suitable highlights and then the finance team can analyse issues if any and take actions on them. Otherwise, these errors go unnoticed and they pile up and lead to huge losses.
So, if you are interested in conducting your business operations more efficiently and accurately then Cointab’s software would be a great asset to your business.
