--- id: CON-ACC-REC-003 name: Payout Reconciliation feature: FEAT-ACC-REC-02 product_area: accounting module: reconciliation revision: 2 status: draft product_intent: confirmed implementation_evidence: observed source_sha: services-accounting: f47cb263875bbc0c5640fba7dae6785ec32695f8 react-console: baf6dae382d6f41dce976c7f848667ccc37e076f definition: >- A reconciliation retains the explanation of a merchant’s payouts using claimed settlement effects and documented manual entries. Finalization approves that explanation and creates the required accounting requests. owned_by: MOD-ACC-REC synonyms: - reconciliation batch - RB number - reconciliation workspace not_to_be_confused_with: - an operational batch - a month-end close - a bank reconciliation of a whole account facets: - name: Explained payouts meaning: Linked deposits supply the net money being explained within one merchant context. used_for: Reconciling related processor transfers. - name: Money allocations meaning: 'Claims preserve the selected effects, matching reasons, source batches and people.' used_for: Explaining holdings and preventing duplicate use. - name: Manual explanation entries meaning: 'Documented fees, reserves and adjustments account for processor effects outside payment records.' used_for: Completing the processor statement explanation. - name: Set-aside suggestions meaning: Dismissals affect this draft’s suggestions without hiding the item elsewhere. used_for: Keeping matching review focused. - name: Balance and progress meaning: The difference and derived display status indicate how far preparation has progressed. used_for: Distinguishing calculation from approval. - name: Record lifecycle meaning: 'Open, finalized, reversed and voided standing governs permitted changes.' used_for: Preserving finalized explanations. - name: Independent approval meaning: Preparation history and the second-person setting determine who may finalize. used_for: Reviewing separation of duties and waived approvals. - name: Correction history meaning: Reversal information records why and by whom a finalized explanation is undone. used_for: Preparing an accountable replacement. - name: Accounting requests meaning: 'Transfers, recognitions and mirrors join operational batches under distinct effect keys.' used_for: Carrying approved accounting into posting. - name: Activity and original batches meaning: Activity and source grouping show how staff prepared the explanation and where matched money began. used_for: Tracing preparation and retry results. relationships: - to: CON-ACC-REC-001 statement: Payout links identify the bank movements the reconciliation explains. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/reconciliation-workspaces.ts' - to: CON-ACC-REC-002 statement: Allocations connect the explanation to existing or manually created settlement items. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/reconciliation-workspaces.ts' - to: CON-ACC-REC-004 statement: Exceptions describe discrepancies surrounding the explanation and its payouts. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/reconciliation-workspaces.ts' - to: CON-ACC-REC-005 statement: 'Readiness evaluates the reconciliation’s balance, approvals and accounting progress.' provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/reconciliation-workspaces.ts' lifecycle: - state: 'Open (Draft, In Progress, Balanced)' meaning: The explanation is editable and its progress is derived from claims and balance. how_it_changes: Approve a balanced explanation or abandon the draft. - state: Finalized meaning: The explanation is approved and its financial holdings are protected. how_it_changes: 'Request reversal, with independent approval after period close.' - state: Reversed meaning: The original explanation is retained after mirrored accounting and released holdings. how_it_changes: Prepare a replacement rather than change this record. - state: Voided meaning: The draft is abandoned without accounting requests. how_it_changes: It remains a terminal historical record. acted_on_by: - CAP-ACC-REC-008 - CAP-ACC-REC-009 - CAP-ACC-REC-010 - CAP-ACC-REC-011 - CAP-ACC-REC-012 - CAP-ACC-REC-013 - CAP-ACC-REC-014 - CAP-ACC-REC-019 - CAP-ACC-REC-020 visible_to: - ACT-ACC-017 - ACT-ACC-018 - ACT-ACC-007 - ACT-ACC-019 evidence: - >- Inspected concept support: db/reconciliation-batches.table.ts, reconciliation-batch-links.table.ts, reconciliation-postings.table.ts, reconciliation-events.table.ts, idempotency-keys.table.ts; services/persistence/reconciliation-workspaces.ts, reconciliation-allocations.ts, reconciliation-batch-lifecycles.ts, reconciliation-ledger-postings.ts; services/batch-lifecycle/*; rules/segregation.ts, batch-status.ts, transitions.ts, posting-plans.ts; docs/reconciliation/brief.md, architecture.md §5.3, §14, §16. - 'Inspected concept support: components/accounting/reconciliation/workspace/*.tsx, batches-screen.tsx.' supersedes: [] --- # Payout Reconciliation ## What It Is A reconciliation is the continuing explanation of what a processor deposit contains. The preparer starts with the payout and connects it to the money effects that support the processor’s reported net amount. When a processor divides a settlement across related transfers, the explanation can include several payouts in the same merchant context. The workspace brings together candidate effects, selected claims, manually entered deductions and the resulting difference. Evidence strength helps the preparer choose; balance alone does not identify the right money. A fee or reserve entry explains a processor movement that staff can support with a note or document rather than inventing another payment. Finalization is a separate decision from reaching balance. An eligible approver approves the explanation, and Rhythm creates requests for the transfer and applicable item recognition. Operational batch posting later turns those requests into ledger entries. The retained reconciliation therefore explains both the preparer’s choices and the approval that follows them. ## What It Is Not An operational batch groups accounting documents for posting and can contain work from several explanations. A reconciliation can draw from several original batches without becoming their owner. It also differs from month-end close, which evaluates a whole period. Explaining processor deposits does not establish a complete reconciliation of every movement in a bank account. ## How It Is Used Preparers review why candidates appear, claim those that belong and set aside weak suggestions that do not help. They enter processor deductions, inspect the difference and save the work for review. Concurrent work can fail because another person changed the version or another explanation already holds the money. Staff need to inspect that newer state before continuing. Approvers finalize prepared explanations and use reversal when an approved explanation is wrong. The console saves local draft differences before finalizing, so an approver who changes holdings during that save may become a preparer. That interaction is material to a usable independent-review journey. ## Its Facets **Explained payouts** supply the net bank result. **Money allocations** preserve both the selected effects and their explanation. **Manual explanation entries** add the documented processor effects missing from payment records. **Set-aside suggestions** keep review focused without resolving money. **Balance and progress** indicate preparation rather than approval. **Record lifecycle** protects the approved explanation and keeps abandoned drafts historical. **Independent approval** connects preparation history to the approval decision. **Correction history** retains the reason and people behind reversal. **Accounting requests** carry the financial consequence into operational posting. **Activity and original batches** give reviewers a trace back through preparation and source documents. ## How It Relates Payouts provide the bank movements, settlement items provide the financial effects and exceptions describe concerns requiring investigation. Accounting configuration supplies posting accounts. Batch Management posts the generated requests, and Close Readiness reports unfinished approval or accounting work for the period. ## What It Could Become The product should define the full set of preparer activities before relying on independent approval as its primary control. A complete waiver administration flow and clearer draft-save review would make that decision visible. Import and evidence-upload extensions should preserve accountable approval and reversal rather than editing the finalized explanation in place.