A payment processor chargeback should be traced from the original sale through the dispute and final settlement. Keep the processor’s notices and ledger movements connected. A provisional withholding, a fee and a completed customer refund may affect different balances and should not all be posted as one unexplained sales reversal.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Identify the disputed transaction

Record the processor reference, customer order, invoice, currency and original receipt. Check whether the amount was settled to the company or remained with the provider. Preserve the notice and any response date for the authorised dispute owner.

The accounting team should receive the relevant documents without deciding the commercial dispute through a bookkeeping entry. A ledger adjustment does not establish whether the company accepted the claim.

Separate settlement components

List funds withheld, dispute fees, later releases and any final deduction. Match each movement to the processor report and bank settlement. If the provider nets the amount against later sales, retain enough detail to explain that net deposit.

Ask the accountant to determine the appropriate accounts and any revenue, receivable or tax implications on the actual facts. Do not record the same customer payment or reversal twice through separate integrations.

Example: the company wins the dispute

The provider initially withholds money, then releases it after review. Link the release to the earlier disputed balance rather than treating it as a new customer sale. Identify any fee retained separately.

Close the reconciliation

Keep the final provider outcome, approved entries and remaining differences together. Confirm that the bank and processor balances agree with the records after settlement. IRAS recordkeeping guidance supports retaining evidence that explains the transaction; a provider dashboard status alone may not show the complete accounting history.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.