Payout Reconciliation
Definition
Matching each platform payout in the bank to the sales, fees, refunds and adjustments behind it, so revenue and fees are recorded in full rather than just the net deposit.
Want a deeper explanation?
Booking only the net deposit understates both your revenue and your costs, which hides how much you are really paying platforms to sell. Payout reconciliation records the full picture behind every deposit.
With several channels, this is where most e-commerce books go wrong, so it is worth automating with a connector. Watch for: deposits recorded as a single revenue line, because your fee costs are then invisible.
Example
Instead of booking a $9,680 Shopify deposit as revenue, you record $10,000 of sales and $320 of fees, so your margins reflect reality.