POS sales do not match the bank deposit: build a settlement bridge

A card payout rarely equals the till's total sales. Reconcile the completed card payments included in that payout, then account for refunds, deducted fees and timing differences. Leave cash sales in their own reconciliation. The remaining difference should be explained by named transactions or adjustments, rather than posted to a miscellaneous expense to make the bank match.

Open the sales export, provider transfer detail and bank entry together. This comparison starts with the point-of-sale (POS) system you already use.

Identify the status and reporting window first

Check whether the provider has sent a payout or is still holding the balance. A payout marked pending belongs in the outstanding list until the next event is confirmed. Record the location, currency, timezone and cutoff of each report. A calendar-day sales summary and a payout batch can include different transactions.

Square lets you inspect the individual payments in a transfer and export its details. Use those IDs to establish membership of the batch. Don't infer membership just because a sale has the same date as the deposit.

Build a bridge with the timing difference visible

Movement	Amount	Evidence
Opening unsettled card balance	$200	Prior-day payment IDs
New completed card sales	+$2,000	Today's card export
Refunds deducted	−$100	Refund IDs in this settlement
Processing fees deducted	−$38	Provider fee lines
Bank payout	−$1,862	Bank entry and transfer reference
Closing unsettled balance	$200	After-cutoff payment IDs

Original ASBG worksheet with fictional AUD figures. The table is also the text equivalent of the example.

The movement check is $200 + $2,000 − $100 − $38 − $1,862 = $200. The $1,862 payout includes $200 from the previous day and excludes $200 from today's late transactions. If the shop also took $300 cash, that $300 never enters this bridge. These are fictional amounts, not a provider's rates or a tax calculation.

The same figures can support a merchant clearing account: record card collections against that account, then clear the documented refunds, fees and bank transfer. Its closing $200 should agree with the provider money still due. Use the accounting workflow your bookkeeper has set up; an integration may already have posted some of these entries.

Check the deductions before posting anything twice

A monthly terminal-rental debit paid separately from the bank does not reduce this payout. A processing fee shown both as a total and as a breakdown is one charge. Match refund IDs too: a refund submitted today might be funded by a later deduction or a separate debit.

If the bridge is $20 out, find the missing $20 event. Check incomplete tenders, excluded locations, returned transfers and duplicate imports. Preserve the unresolved item with an owner and follow-up date. Square's transfer troubleshooting guide identifies location and bank-account checks when the expected funds cannot be found.

Carry the balance forward and close the exception

Tomorrow's opening balance should be today's explained closing balance. Keep the supporting transaction list, not only the total. Once the late payment appears, match it to that list and mark it cleared. An ageing unsettled item needs investigation even when new sales make the total look plausible.

Use the missing-payout checklist if the bank receipt itself is absent. For a confirmed hold, keep a separate reserve schedule. The bookkeeping guide covers the wider bank reconciliation; the payments hub groups the other payment problems.

Key takeaways

• Compare the transactions included in a payout, not two unrelated totals.
• Keep cash, separately paid charges and unsettled card money visible.
• Carry forward an identified balance instead of inventing a balancing expense.

Where to get help

• Square: match transfers to sales
• Square: troubleshoot missing transfers