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Reconciling the billing statement

Deduction type difference on billing statement

Direct and Indirect deduction

As the billing statement summarizes all product usage from the month, there are differences in how direct deduction type and indirect deduction type products are displayed on the billing statement. This difference is a result of how the associated fees for those product transactions are settled.

MethodDescriptionDeduction timeSettled from
DIRECTThe fees and VAT charges for the product are calculated and deducted at the point of transaction completionPer transaction, as it occursCash Balance
INDIRECTThe fees and VAT charges for the product are calculated at the end of the month and the billing amount settled after the billing statement has been publishedAggregated, at the end of the billing monthBilling Wallet

This means that when the billing statement is generated for your account,

  • Direct deduction products have already had their associated fees deducted from the transactions, and so this is a summary of what has already happened in the past
  • Indirect deduction products have not had their associated fees deducted from the transaction, and so this is a summary of what is due as a billable amount payable to Xendit

Differences on billing statement

The billing statement will summarize all of the product usage from the previous month, regardless of whether it is a direct deduction or indirect deduction product. However as the fees for direct deduction products have already been paid, there will be additional line items in the billing statement for every direct deduction product that is being used. This additional line item of “{Product} Direct Fees Paid”, summarizes the fees already paid for that product.

Note: You will most often see this with products that are only available* with direct deduction type billing, such as Ewallets.

As a result of direct deduction type products and percentage fees, there will be rounding errors that are taken into account when generating the billing statement. This is displayed as the “Rounding” line item in the aggregate level table. The calculator logic table is given below

ComponentDirect deductionIndirect deduction
Fees Paid (per product)Sum(Fees Paid Amount)Not Applicable
Rounding (calculated per product)(Subtotal + VAT) - Sum(Fees Paid Amount)Not Applicable
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