---
page_source: https://docs.juspay.io/recon-and-settlement/docs/recon--settlement/basic-understanding
page_title: Basic Understanding
---


# **Overview** 



The Juspay Reconciliation and Settlement Module enables merchants to reconcile transaction data between their internal systems, payment gateways, and banks. Depending on your integration level, reconciliation can be configured as:

* **Two-Sources Reconciliation** : Merchant ↔ Payment Gateway
* **Three-Sources Reconciliation** : Merchant ↔ Payment Gateway ↔ Bank


#### To set up reconciliation, you'll configure the following:



* Transaction File Configuration
* Payment Gateway Configuration
* Report Configuration
* Bank Configuration _(only for Three-Sources Reconciliation)_


## **Configuration Fundamentals** 



Configuration in Juspay defines the rules for **processing, transforming, and validating**  transaction data. This setup is primarily used for reconciling data from a CSV file. 


### Key Elements:



1. **Global Configuration**  – Used to add or override columns such as `merchant_id` and `txn_status`. If all transactions belong to the same merchant, this configuration ensures consistency across all records.
2. **Local Configuration**  – Allows processing logic to differ for ORDER, REFUND, and other types. Filters are applied based on specific conditions like `transaction_type = ORDER`, and correct mappings and transformations are applied.
3. **Mapping**  – Maps the column headers from your uploaded transaction file to Juspay's internal field names.  For example, a column in your transaction file named "payment gateway" would be linked to Juspay's "gateway" field.
4. **Validation**  – Ensures data quality by running checks like:
   
   * **Missing Value Check** : Flags records with empty or null values in mandatory fields.
   * **Duplicate Record Check** : Identifies repeated entries based on defined unique keys to avoid double processing.
   * **Date Format Validation** : Confirms that all date fields adhere to the required format (e.g., YYYY-MM-DD), ensuring compatibility and consistency.
   * **Numeric Field Validation** : Verifies that fields expected to be numeric contain only valid numerical values, with no letters or invalid symbols.
5. **Checks**  – The **check**  section is used to manage validation checks. You can enable or disable specific validations by including their names in the `checks` list.