Understanding the core concepts of Formance Reconciliation will help you effectively implement and use the service to maintain financial accuracy across your payment systems.

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Policies

A reconciliation policy defines which ledger accounts to compare with which cash pools. Each policy contains four required fields:

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Policy Components

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name
string
required
A human-readable identifier for the policy (e.g., “Stripe Settlement Reconciliation”)
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ledgerName
string
required
The name of the Formance Ledger instance to reconcile against
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ledgerQuery
object
required
Query parameters that define which ledger accounts to include in the reconciliation
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paymentsPoolID
string
required
The UUID of the cash pool to reconcile against the ledger accounts

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Reconciliation

A reconciliation compares balances between your Formance Ledger and a cash pool at specific timestamps. You provide:
  • reconciledAtLedger - timestamp for ledger balance retrieval (must be in the past)
  • reconciledAtPayments - timestamp for cash pool balance retrieval (must be in the past)
The reconciliation stores the results with status OK or NOT_OK, along with ledgerBalances, paymentsBalances, and driftBalances for any discrepancies.

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Drift Detection

When balances don’t match between systems, the service calculates drift - the exact difference stored in driftBalances. All drift amounts are calculated as absolute values and stored per asset.