How Do We Manage Reconciliation?

Reconciliation Capabilities

Formance provides reconciliation capabilities that allow to map ledger accounts to real-world balances held by payment providers and banks, ensuring transparency and accuracy in financial tracking.

1. Ledger-to-Bank Balance Matching

• You can reconcile the balances of specific ledger accounts in Formance with their corresponding balances in external financial institutions (e.g., PSPs like Stripe or bank accounts at JP Morgan).

• This ensures that recorded transactions align with actual fund movements.

2. Automated Reconciliation & Reporting

• During the implementation phase, you will define detailed reconciliation policies and generate custom reports based on your needs.

• This will include handling bi-temporality of funds (e.g., distinguishing between transaction timestamps vs. settlement dates).

3. Compliance & Financial Oversight

• By maintaining an accurate reconciliation process, You can detect discrepancies, streamline audits, and ensure regulatory compliance in your fund flows.

This structured approach ensures that you can effectively track, validate, and report on fund movements while maintaining operational control.

You’ll find more information about reconciliation here: https://docs.formance.com/reconciliation/explanation/what_is_reconciliation