Real-Time Payments Reconciliation

Performing real-time payments reconciliation with RTP (Real-Time Payments) and FedNow using spreadsheets involves a combination of manual and automated processes. Here's a step-by-step guide to help you set up a solution using your spreadsheets:

1. Understand Real-Time Payments Data:

• Access to Transaction Data: Obtain access to real-time transaction data from RTP and FedNow. This may involve utilizing APIs provided by the payment platforms or obtaining transaction reports through your banking or payment service provider.

2. Design Your Spreadsheet:

• Data Fields: Create a spreadsheet with columns for essential transaction details such as transaction ID, amount, date, payer/payee information, and any other relevant data.
• Data Validation: Implement data validation rules to ensure the accuracy and consistency of the entered data.

3. Automate Data Entry:

• Use Formulas: Utilize spreadsheet formulas to automate data entry and calculations. For example, use SUMIFS or VLOOKUP functions to match transactions between different sheets.
• Timestamps: Use timestamp functions to record the date and time of each data entry for an audit trail.

4. Reconciliation Rules:

• Define Rules: Establish reconciliation rules based on your business requirements. These rules should help you match transactions between your spreadsheet and the real-time payment data.
• Exceptions Handling: Plan for handling exceptions. If there are discrepancies or unmatched transactions, create a process for investigating and resolving these issues.

5. Regular Updates:

• Frequent Updates: Update your spreadsheet regularly with the latest transaction data from RTP and FedNow. This could be done manually or automated using scripts or third-party tools.

6. Compare and Match:

• Manual Matching: Review and manually match transactions between your spreadsheet and real-time payment data. This step may involve comparing transaction amounts, dates, and other relevant details.

7. Exception Handling:

• Identify Discrepancies: Identify any discrepancies between your spreadsheet and the real-time payment data. Document these discrepancies for further investigation.
• Resolution Process: Establish a process for resolving discrepancies, whether it involves contacting the payment provider, investigating errors, or making manual adjustments.

8. Audit Trail:

• Record Changes: Maintain an audit trail within your spreadsheet to document any changes or adjustments made during the reconciliation process.

9. Security Measures:

• Secure Access: Ensure that only authorized personnel have access to the spreadsheet, especially if it contains sensitive financial information.
• Encryption: Consider encrypting the spreadsheet file for an added layer of security.

10. Documentation:

• User Manual: Create a user manual or documentation outlining the steps for using the spreadsheet solution. This documentation should include guidelines for reconciliation, data entry, and exception handling.

11. Testing:

• Test Scenarios: Conduct thorough testing using sample data to ensure the accuracy and effectiveness of your spreadsheet solution.

12. Continuous Improvement:

• Feedback Loop: Establish a feedback loop for users to report any issues or improvements needed in the reconciliation process. Continuously refine your spreadsheet solution based on feedback and changing business requirements.

By following these steps, you can create a spreadsheet solution for real-time payments reconciliation with RTP and FedNow. Keep in mind that while spreadsheets provide a flexible and accessible solution, they may have limitations in handling very large datasets or complex reconciliation processes. If your business grows, consider exploring more advanced reconciliation tools or integrating directly with accounting software.