About
Finaloop is built to ensure that your sales, payments, and payouts are fully reconciled and always accurate. Because ecommerce data comes from multiple systems and does not always arrive at the same time, reconciliation requires more than simply recording sales when they happen.
This article explains how Finaloop reconciles sales end to end, from the moment an order is placed, through payment collection, and all the way to the bank deposit. It also explains how Finaloop handles timing differences and what happens when orders or payments cannot be matched.
1. How sales are usually recorded in Finaloop
The three-way reconciliation process
Finaloop uses a three way reconciliation process to accurately track your sales and payments from order to payout.
Here’s how it works:
Order data
We sync your order data directly from your connected sales channels, like Shopify.
Payment processor identification
We automatically detect the payment processor used for each order, like PayPal, Stripe, or Afterpay, and reconcile it with the related order . We record the amount in an Undeposited Funds account for that payment processor on your Balance Sheet.
Bank payout reconciliation
When the payout is deposited into your bank account, we automatically match and reconcile it, reduce the Undeposited Funds for that payment processor and tie the payment back to the correct orders and sales channel.
This process ensures that your sales, payments, and bank deposits stay fully aligned.
Reconciliation-in-process
Because order data and payment data do not always arrive at the same time, temporary timing differences can occur.
For example, a payment may arrive before the matching order data, or an order, specifically an order paid through a payment processor, may arrive before the payment.
This is normal and usually resolves itself automatically as more data is synced.
When this happens, we temporarily record the unmatched amounts in a Balance Sheet account called Reconciliation-in-process (RIP). This account acts as a temporary holding spot for:
Payments or refunds without a matching order, or
Online sales or refunds without a matching payment.
As new data is synced, Finaloop automatically matches the orders and payments and clears the RIP account. Our accounting team also reviews this account regularly to ensure everything is reconciled.
If a match can’t be identified, we clear the RIP account by recording the amounts in your P&L so your books stay balanced at all times.
Unmatched payments are recorded as sales under the relevant payment processor, like Sales - PayPal.
Unmatched orders are recorded as an expense called Reconciliation discrepancies.
Some payment processors may vary from this setup. If you have questions about specific processors, please contact support for more details.
You can read more details about why we record these entries to clear the RIP account below.
2. When payments are received without a matching order
If Finaloop receives payment data from a payment processor and there is no corresponding order data available, the payment is cleared from the RIP account by recording it as sales under the relevant payment processor, such as Sales - Paypal, or Sales - Stripe.
This can happen for two reasons:
A timing delay, where payment data arrives before the order data. In this case, the entry will automatically correct itself once the order data is synced.
The payments relate to a sales channel that is not connected to Finaloop. For example, a PayPal payment tied to a BigCommerce order when BigCommerce is not connected.
You can learn more about this scenario in Understanding sales recorded under payment processors.
3. When orders are received without a matching payment
In rare cases, an order may appear in Shopify as paid through a payment processor but no corresponding payment is actually received.
When this happens, we’ll automatically clear the RIP account by recording a Reconciliation discrepancy expense in your P&L. This removes any potential overstatement from order data received from Shopify and ensures your financials remain accurate.
Some payment processors may vary from this setup. If you have questions about specific processors, please contact support for more details.
Have questions?
If you're unsure about a specific transaction or want help connecting additional sales channels, our support team is here to help-just reach out!