Payment Platform Processing

Department: Finance & Accounting Process Owner: Accounting Coordinator Last Updated: January 2026

1. Overview and Purpose

Objective: To define procedures for recording, reconciling, and classifying payment platform activity each month. This SOP ensures that gross donation revenue, processing fees, and net deposits are accurately reflected in your accounting system, and that platform balances reconcile to bank deposits and donor records.

2. Scope

This SOP applies to all transactions processed through your organization's online payment platforms. Whether you use one platform or multiple platforms, the procedures outlined here ensure consistent treatment of:

• Online donations, event payments, and campaign forms
• Peer-to-peer fundraising and other digital receipts

It includes monthly downloads, reconciliation, classification, fee recognition, and posting to your accounting system. Weekly revenue recording may be addressed in a separate SOP; this SOP focuses on monthly tie-out and adjustments.

3. Step-by-Step Process

3.1 Download Monthly Platform Reports

For each payment platform your organization uses:

• Log into the platform dashboard and download month-end reports:
  • Payout / Settlement report (shows net deposits to your bank)
  • Transaction detail report (itemized donations / payments)
  • Fee summary report (processing fees charged)
• Report names and formats vary by platform. Typical reports include activity summaries, monthly statements, or gross-to-net reconciliations
• Save all exports to your organization's file management system in a designated folder structure (e.g., Month-End Close → Payment Platforms → [Month-Year] → [Platform Name])

Reviewer / Back-up: Development Systems Manager

3.2 Reconcile Gross Receipts to Net Deposits

• For each platform, confirm:
  • Gross receipts (donations / payments)
  • Platform fees
  • Net payout amounts
• Tie net payouts to bank deposits in your accounting system's bank feed for the same period
• If payouts cross month-end, document as timing reconciling items

Reviewer / Back-up: Senior Accountant

3.3 Record Gross Revenue and Fees in Accounting System

• In your accounting system, locate the bank deposit for each platform payout
• Reclass from net deposit to gross + fees:
  • Increase revenue to gross amount
  • Record fee expense separately
• Typical journal entry / deposit split:
  • Debit: Cash (net payout already received)
  • Debit: Merchant Fees Expense
  • Credit: Contribution / Revenue (gross)
• Apply correct Class / Fund and Donor / Grant coding if donation is restricted or grant-linked
• Attach platform report as backup to deposit or journal entry

Reviewer / Back-up: Controller

3.4 Validate Campaign or Donor Mapping (If Applicable)

• Compare transaction exports to your donor management system's campaign designations
• Confirm that restricted or capital campaign gifts are coded consistently in your accounting system
• Flag any donations lacking sufficient metadata for follow-up

Reviewer / Back-up: Development Systems Manager / Senior Accountant

3.5 Final Reconciliation and Close Sign-Off

• Confirm that for each platform:
  • Gross receipts – fees = net payouts
  • Net payouts tie to bank deposits
  • Accounting system revenue totals match platform exports
• Save reconciliation workbook and notes in your file management system
• Notify Controller that payment platform close tasks are complete

Reviewer / Back-up: Controller

4. Key Roles and Responsibilities

5. Key Files and Systems

• Payment Platform Dashboard(s) – Settlement, transaction detail, and fee summary reports from each platform you use
• Accounting System – Revenue and fee entries, bank deposit tie-outs
• Bank Statements / Bank Feed – Net payout verification
• Donor Management System – Donor / campaign designation records (if applicable)
• File Management System Close Folder – Archive of reports and tie-outs

6. Exceptions and Special Cases

• Single Platform Organizations: If you only use one payment platform, the same procedures apply—simply perform all steps for that single platform.
• Payouts Crossing Month-End: Record as timing reconciling item; ensure gross revenue still recognized in correct period if material. Document in your accounting policies manual your materiality threshold for accruing revenue not yet deposited.
• Refunds / Chargebacks: Record reduction of revenue and reverse associated fee if reflected by platform.
• Restricted Gifts: Must be coded to restricted revenue accounts and correct class/fund/campaign.
• Event Revenue: If payment platforms include ticket sales, split between contributions vs earned income as applicable per accounting standards.

7. Risks and Controls Summary