Settlement Report

Use the Settlement Report to determine how much is owed to you for product subscription sales on a monthly basis. This report enables Merchants and Resellers (Service Providers) to see payout results in a central and transparent location. In addition to processing settlements, Partner Ecosystem Management does the work of reporting for you. Payouts are determined in the agreement between the Merchant and Reseller (Service Provider). When a Reseller creates an agreement and enables a settlement model, the Reseller chooses a settlement type for payouts. The available settlement types are:

Fixed Amount (flat fee)
Revenue Share (percentage)

The Reseller enters the flat fee or percentage the Merchant will receive in the agreement. The actual payments to the Merchant are the responsibility of the Reseller. Settlements are either based on monthly calculations of active subscriptions, or on monthly calculations of transactions (that is, new activations and renewals). This calculation depends on the product lifecycle the Merchant chose for the product, which can be Merchant-Managed or Platform-Managed. Note: An agreement must be active, have an enabled settlement model, and have active subscriptions or active billing entitlements to generate data in the Settlement Report.

Settlement Processing
Settlement Report File

Parent topic:Reports

Settlement Processing

Fixed Amount Processing

The Reseller (Service Provider) and the Merchant can establish a Fixed Amount settlement in an agreement. Once the agreement is approved, the Merchant receives a flat fee for every new subscription activation or renewal. The settlement process varies depending on whether a product is Merchant-Managed or Platform-Managed. Settlement Process for Merchant-Managed Products Fixed Amount settlements are initiated and processed for Merchant-Managed products as follows:

Using the Reseller’s statement billing, a customer buys or renews a subscription at the Merchant’s store.
The Merchant’s system sends a transaction to Partner Ecosystem Management for the new subscription or renewal.
In accordance with the agreement, the fixed amount settlement model is applied to the transaction.
The Merchant receives the fixed amount for every new subscription and renewal.

For refund transactions, Partner Ecosystem Management will reverse the settlement amount from the Merchant. These transactions are visible in the Settlement Report. Note: Refunds may occur months after activations. In such cases, the monthly settlement may not reconcile with activations and renewals for the Merchant’s product. Settlement Process for Platform-Managed Products Fixed Amount settlements are initiated and processed for Platform-Managed products as follows:

Customers buy subscriptions at the Reseller’s store.
The Merchant receives the fixed amount for every active subscription in a given month. This will include any subscriptions that were active but also canceled within the same month. Partner Ecosystem Management looks for any subscriptions that were active in the prior month, and applies the fixed amount defined in the agreement.

The Reseller (Service Provider) and the Merchant can establish a revenue share settlement in an agreement. Once the agreement is approved, the Merchant receives the designated percentage for every subscription purchase and renewal. If the Reseller provides a minimum price for a revenue share and the charge amount is lower or missing, the minimum price will be used in place of the charge amount. The settlement process varies depending on whether a product is Merchant-Managed or Platform-Managed. Settlement Process for Merchant-Managed Products Revenue Share settlements are initiated and processed for Merchant-Managed products as follows:

Using the Reseller’s statement billing, a customer buys or renews a subscription at the Merchant’s store.
The Merchant’s system sends a transaction to Partner Ecosystem Management for the new subscription or renewal. The transaction contains the subscription price that will be used to determine the revenue share amount.
In accordance with the agreement, the revenue share settlement model is applied to the transaction.
The Merchant receives the revenue share percentage for every new subscription and renewal.

For refund transactions, Partner Ecosystem Management will reverse the settlement amount from the Merchant. These transactions are visible in the Settlement Report. Note: Refunds may occur months after activations. In such cases, the monthly settlement may not reconcile with activations and renewals for the Merchant’s product. Settlement Process for Platform-Managed Products Revenue Share settlements are initiated and processed for Platform-Managed products as follows:

A customer buys or renews a subscription at the Reseller’s store.
The billing system (Commerce Engine or an external system) sends the price paid for the subscription to Partner Ecosystem Management. This process is also applied to any subscriptions that were active but also canceled within the same month.
Partner Ecosystem Management calculates the percentage owed to the Merchant.
In accordance with the agreement, the revenue share model is applied to the subscription.
The Merchant receives the Revenue Share percentage for the new subscription or renewal.

Note: If you’re using your own subscription billing platform, the offer charge and the price paid need to be provided to Partner Ecosystem Management to process revenue share settlements. Parent topic:Settlement Report