Settlement & Bank P&L — how the daily numbers are computed

The Settlement tab gives card program managers and finance the daily Bank P&L for the issuer business — replaces the spreadsheet finance teams traditionally maintain to track interchange, processor fees, network fees, rebate accrual, and reconciliation breaks.

What auto-posts to the GL:

Every cleared transaction triggers a Journal Entry through Turtini's Accounting module:

- **Interchange revenue** (Cr 4500 — Revenue / Commercial Cards) — the percentage the bank earned on the merchant side.
- **Network costs** (Dr 5XXX — Network Fees) — what Visa / Mastercard / Amex billed for routing the transaction.
- **Processor costs** (Dr 5XXX — Processor Fees) — fixed per-transaction or per-decision fee from your processor (TSYS, Fiserv, FIS, etc.).
- **Cardholder rebate accrual** (Dr 5XXX — Rebate Expense, Cr 2XXX — Rebate Payable) — running tally of what you owe each adopter at month-end.

The numbers come from:
- The processor settlement file (uploaded nightly or via API).
- The interchange + network fee schedule on the program (Settings → Fee Schedule editor).
- The rebate program on the program (Settings → Rebate Schedule).

Funded accounts:

Each adopter has a Funded Account — a balance the bank holds against the adopter's settlement. Funding events (the adopter wires money in) post a credit; settlement events (the adopter's cards cleared transactions) post a debit. Funded Account balance must stay positive — if it would go negative, new authorizations are declined with reason code "Funded Account Insufficient."

Reconciliation breaks:

Every settlement night, the platform compares:
- What the processor's settlement file says cleared
- What Turtini's authorization stream recorded as cleared

If those don't match, the difference is a "break" — flagged at the top of the Settlement tab in a red badge. Break types:
- **Missing from processor** — Turtini saw an auth approve and clear but the processor's file doesn't list it. Most often a delivery delay; auto-resolves the next night.
- **Missing from Turtini** — the processor's file has a clearance Turtini never saw. Investigate immediately — could indicate authorization-stream loss.
- **Amount mismatch** — same transaction id but different amounts. Usually a partial-refund or tip-adjustment that the auth stream missed.

Monthly rebate scheduler:

On the schedule day each month (typically the 5th business day after month-end), the rebate scheduler runs:
1. Computes each adopter's rebate based on their tiered schedule and the month's volume.
2. Posts the rebate as a JE (Dr Rebate Expense, Cr Rebate Payable).
3. Optionally triggers an ACH out of the bank's account to fund the adopter's account with the rebate (if the program is configured for auto-funding).
4. Files the rebate calculation backup in Documents with a Verified-by-Turtini timestamp.

The Portfolio Financials view:

Top of the Settlement tab — a live P&L for the entire portfolio across all programs. Drill in to any program → drill in to any adopter → drill in to any card → drill in to any transaction. Everything that ladders up to the P&L is auditable to the source.