Start with three records: the invoice, the incoming payment and the settlement record. Match the payer, reference and currency, then explain any difference between the amount billed and the amount available to your business. Close the item only when the records support that decision.
For a small business, this can begin in a spreadsheet. Collect the invoices and payment records for the period you are reviewing, choose a cutoff time, and record payments that are still pending separately. A client’s transfer confirmation is useful evidence, but it does not by itself establish that funds have settled in your account.
Work through the same sequence each time: build the table, identify the payment, separate fees from customer balances, allocate the money, and attach the evidence. The examples below are illustrative manual reconciliation records, not screenshots of AllScale or a promise of automatic matching.
In this guide
- Build a reconciliation table before matching
- Match references before matching amounts
- Explain gross, fees and net settlement
- Track partial, combined and unmatched payments
- Close the item with its supporting records
- Frequently asked questions
Build a reconciliation table before matching
Give each invoice a reference and retain the original amount and currency. Beside it, record the payment information available from your bank, payment provider or wallet. Keep the source documents accessible so another person can follow the match without asking you to reconstruct it.
The following field list can be copied into a spreadsheet. If a field is unavailable, enter Pending and name the person who will check it. An unknown fee should not silently become zero.
Field
What to record
Why it matters
Invoice reference
The reference on the issued invoice
Identifies the obligation
Payer
Customer name and identified sender
Helps distinguish equal payments
Expected amount and currency
Original invoice amount and unit
Establishes the starting balance
Payment reference
Bank reference or provider transaction ID
Identifies the incoming payment
Received amount and currency
Amount supported by the payment record
Keeps receipt separate from expectation
Received date
Date and relevant timezone
Supports cutoff checks
Settlement reference and date
Related settlement evidence
Connects receipt to available funds
Recorded fee
Verified amount, currency and source
Explains documented deductions
Settled net
Net amount credited, with currency
Shows the funds actually settled
Status
Matched or a specific unresolved state
Makes outstanding work visible
Action owner
Person and next action
Gives exceptions a clear follow-up
For stablecoin receipts, add the asset, network, receiving address and transaction hash. A hash identifies an onchain transaction; the supporting invoice or customer record explains which business payment it represents. Use only fields actually available in your account and supporting records.
Set the review boundary before adding rows. For example, a daily review might include receipts recorded through 17:00 in the business’s reporting timezone. A payment settling after that cutoff belongs in the next review, while its current row remains awaiting settlement. This avoids changing the meaning of “today” halfway through the reconciliation.
Match references before matching amounts
Suppose INV-101 and INV-102 both request USD 1,000 from different clients. A USD 1,000 deposit is not enough information to choose between them. Look for the invoice reference, identify the sender, and compare the payment currency and date with the customer’s records.
Use this order:
A sender name that differs from the invoice customer does not automatically make the payment invalid. It does mean the relationship needs explanation. Ask for a payment reference or remittance breakdown, and retain the response with the transaction. Until then, leave the item marked Needs payer reference rather than choosing whichever invoice has the same amount.
For virtual account reconciliation, work from the actual receiving-account and transaction records available to you. Do not assume a virtual account number identifies one particular invoice: a customer may have several outstanding invoices, or may send one transfer for several purchases.
For a USDC payment, confirm the asset and network as well as the hash and destination. Record 1,000 USDC as 1,000 USDC, not automatically as USD 1,000 received. If the invoice is denominated in USD, retain the agreed settlement terms and any actual conversion evidence used to determine the invoice allocation.
Explain gross, fees and net settlement
A lower settlement amount can have several causes. The client may have paid part of the invoice, a documented fee may have been deducted, or a conversion may have occurred. These situations require different records and different follow-up.
Illustrative example A: INV-101 requests USD 1,000. The transaction record shows a gross payment of USD 1,000, a verified USD 5 processing fee and USD 995 settled. Assuming that fee is borne by the business under the agreed terms, the customer has paid the full invoice. Record the fee separately rather than chasing the client for another USD 5.
Illustrative example B: INV-102 requests USD 1,000, but the customer pays USD 600. The receipt and settlement evidence confirm USD 600 and no deducted fee. Allocate USD 600 to the invoice and leave USD 400 open. The invoice is partially paid even though the USD 600 receipt itself has been matched.
Invoice
Expected USD
Gross received USD
Verified fee USD
Settled net USD
Result
INV-101
1,000
1,000
5
995
Matched; fee recorded
INV-102
1,000
600
0
600
Partially paid; USD 400 open
If the only evidence is a USD 995 credit, you cannot yet conclude that a USD 5 fee explains the difference. Request the transaction or settlement breakdown and mark the difference for investigation. Likewise, enter zero only when the records support no fee; otherwise use Pending.
Different units need a separate conversion record. Do not subtract a USDC receipt from a USD invoice and label the result a fee. Record the source amount, destination amount, conversion time and actual execution evidence. Any remaining difference still needs an explanation.
For a bank-to-stablecoin collection workflow, explore AllScale Virtual Account. Keep the bank receipt and stablecoin settlement as separate linked records in your reconciliation, using the routes and information available in your account.
Track partial, combined and unmatched payments
Payment matching is not always one payment to one invoice. Keep an allocation record whenever the relationship is more complicated, and make sure the same money is not counted twice.
For a partial payment, record the amount applied and the remaining balance. If another payment arrives later, add its own transaction reference instead of overwriting the first receipt. This preserves the sequence and makes it possible to explain how the invoice was paid.
Illustrative example C: A customer sends one USD 1,000 transfer to pay INV-103 for USD 450 and INV-104 for USD 550. The customer’s payment breakdown confirms the intended allocation.
Payment reference
Invoice
Allocated USD
Supporting record
PAY-203
INV-103
450
Customer’s remittance breakdown
PAY-203
INV-104
550
Same breakdown
Total allocated
1,000
Equals the single incoming transfer
The two allocation rows represent one receipt. Do not also count the USD 1,000 transfer as a third payment. If the customer’s breakdown does not explain the full amount, retain the unallocated portion as an exception until it is resolved.
Use an exception list for issues that cannot be closed during the review:
Exception
Check next
Suggested owner
Partial payment
Confirm the allocation and remaining due date
Accounts receivable
Combined payment
Obtain the invoice-by-invoice breakdown
Customer account owner
Possible duplicate
Compare transaction IDs and settlement evidence
Finance reviewer
Missing reference
Request the payer’s invoice reference
Customer account owner
Timing difference
Check pending status and next settlement record
Finance reviewer
Unexplained fee
Obtain the provider’s fee breakdown
Finance reviewer
A duplicated spreadsheet row and a genuine second payment need different treatment. Compare unique references first. If two separate payments really arrived, record the excess and agree the next step rather than allocating both against a single obligation without explanation.
Keep pending and settled amounts distinguishable. An initiated transfer can be relevant to follow-up, but it should not be treated as available settlement simply because the customer has sent a screenshot. Assign the next check to a person and a review date so the exception does not disappear into a notes column.
Close the item with its supporting records
Before marking an item reconciled, check that the invoice allocation, received amount and settlement record agree—or that a documented fee or conversion explains the difference. A matched receipt can still leave an invoice balance open, as INV-102 demonstrates.
Store the issued invoice, transaction reference, allocation record and settlement evidence together. Include any customer clarification, agreed adjustment or fee breakdown used to resolve the case. If you correct an earlier match, retain the reason for the change and the person who reviewed it.
Organize the closing review around four practical states:
Review unresolved items at the next check, prioritizing older exceptions and approaching due dates. Do not mark everything matched merely to finish the spreadsheet. A short, accurate exception list is more useful than a clean-looking table whose differences have been guessed away.
Keep the invoice and proof of payment distinct. An invoice describes the amount requested; a receipt or transaction record supports what was paid. Our guide to invoices and receipts explains how those records work together.
If you need to issue the payment request, create a stablecoin invoice with AllScale. Retain its reference alongside the payment evidence so your next reconciliation starts with an identifiable request.
Frequently asked questions
Can I match payments by amount alone?
Use the amount as one check alongside the payer, invoice reference, currency and timing. Equal amounts can belong to different customers or invoices. When the reference is missing, request clarification before assigning the payment.
How should I handle a fee difference?
Keep gross payment, documented fee and net settlement separate. Check who bears the fee under the agreed terms. If the deduction cannot be verified, leave the difference open for investigation rather than assuming it is a fee or a customer shortfall.
How do I reconcile a partial payment?
Allocate the confirmed receipt to the correct invoice, retain its transaction reference and leave the remaining balance open. Each later payment should have its own record. Matching one receipt does not mean the entire invoice has been paid.
Does this process require automatic reconciliation?
No. You can use a table and your available source records. If you later automate matching, verify which references, currencies and statuses the rules use, and keep a review process for exceptions. This guide describes a manual workflow, not an automatic reconciliation feature in AllScale.
