Reconciliation Guide – Paystand Help Center

Why This Matters

Although Paystand processes customer payments and updates your ERP, Early Pay operates outside of the Paystand dashboard. That means advances and fees from Lendica will not be automatically recorded—you’ll need to track and reconcile them manually.

Key Terms

• Advance: Up to 90% of the invoice amount provided upfront by Lendica.
• Fee: A small deduction (typically 1.5%–3%) taken from the advance as a factoring cost.
• Repayment: Lendica pulls the full advance amount via ACH on the invoice due date.
• No ERP sync: Lendica does not update your ERP, mark invoices as paid, or interact with Paystand payments.

Manual Reconciliation Workflow

1. Record the Advance

When Lendica disburses the advance:

• Debit your bank account (net received)
• Credit a liability account for the full advance
• Record the fee as an expense

Example for a $10,000 invoice with a 2% fee:

2. Keep the A/R Open

Do not adjust or partially close your A/R or invoice in your ERP. The invoice remains open until your payer makes the payment through Paystand.

Important: Lendica does not settle or mark your invoice as paid, even though it is used as the basis for the advance. The invoice functions solely as collateral.

3. Customer Pays via Paystand

• Invoice is paid and closed via Paystand.
• Paystand syncs payment to your ERP as usual.
• This has no connection to the Lendica advance.

4. Repay Lendica

When repayment is pulled via ACH:

• Debit the liability account to clear the advance balance.
• Credit your bank account for the total repayment.

Best Practices

• Use a dedicated GL account for Early Pay advances.
• Maintain a manual tracker with:
  • Invoice ID
  • Advance amount
  • Fee
  • Advance date
  • Repayment date
  • ACH confirmation
• Consult your CPA or controller for compliance and reporting guidance.

Summary Flow

1. Lendica advances funds.
2. Merchant records advance and fee manually.
3. Invoice stays open until the customer pays through Paystand.
4. Paystand reconciles the invoice normally.
5. Lendica pulls repayment.
6. Merchant clears the liability entry.

Need Help?

• Accounting advice: Contact your internal finance team or CPA
• Lendica support: Use the Lendica portal
• Onboarding questions: Reach out to your Paystand CSM
• General support: support@paystand.com

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Table of contents

Reconciliation Guide

• Reconciliation Guide
• Why This Matters
• Key Terms
• Manual Reconciliation Workflow
• Best Practices
• Summary Flow