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Introduction to reconciliation

In providing you and your platform users the tools to automate reconciliation, it is key to understand the commercial platform model in more detail as well as the components that make for an air tight and unambiguous process. Rootline allows you to reconcile your own books with precision and ease while offering the same tools to your platform users.

The commmercial model​

It is important to reiterate on the commercial model, and to understand the reporting and invoicing responsibilties for Rootline, yourself and your sub-merchants.

Partner merchant​

As a platform owner or manager, we consider you our partner merchant. Rootline provides you, the platform, payment and payment related services for which Rootline bills and invoices you. By default, Rootline does not invoice any of your sub-merchants directly for payment services rendered or for any other services provided in the light of powering your platform payments.

Client merchant​

The users on your platform, which we refer to as client merchants, sub-merchants, platform users or sellers, hold a commercial relationship with you, the platform. You may decide to send the client merchant an invoice of your own, that includes any fees for payment services as well as any other services you may have rendered, and the VAT due.

The tools to use: settlement reports and the invoice​

The commercial model allows you to hold the commercial relationship with your platform users, whereby:

  • Rootline invoices you as a partner merchant for services rendered;
  • You invoice your platform users;
  • On an ongong basis Rootline provides you with settlement reports that allow you and your platform users to reconcile payouts sent by Rootline.

Settlement reports​

  1. Rootline shares settlement reports for every payout, which include all mutations in the given time period, including (but not limited to) gross payments, fees taken, revenue earned, net amounts. All on a transaction-level;
  2. Inform your platform users on payouts, fees, and other balance mutations as soon as they occur by using the Rootline settlement reports. We advice to use the Report API to fetch the reports and parse them into your system before sending them onwards to your platform users.

Continue to Reconcile payments to learn more about automating reconciliation for you and your users.

The invoice​

  1. Rootline shares with you an invoice every month, reporting all fees applicable for the month, as well as VAT that is due;
  2. You are responsible for the invoice towards your platform users. Parsing the settlement reports will help you make up the invoice at month's end. Apart from any fees that you have already deducted from the seller's balance, you can charge any other fees through the invoice. If you haven't already included VAT in the platform fees submitted on every payment, you can put it on your invoice to your seller.

More information on the invoice can be found here.

To learn more about the monthly invoice, please continue reading here.