> ## Documentation Index
> Fetch the complete documentation index at: https://enterprise-docs.bglobale.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Reconciliation

## General Principles

* Reconciliation is performed per parcel
* Each parcel is assigned to a Global-e entity based on its origin hub

## Key Behaviors

* A single Global-e order ID may appear in multiple reconciliation reports
* Reports are generated based on hub, not entity

## Virtual Products

* Virtual products are grouped into a dedicated virtual parcel
* Payments are included in the next reconciliation cycle after an order is received

## B2B VAT (Local VAT)

* If merchant VAT configuration is 0% → VAT = 0
* If the destination country and hub country are both in the EU, are not the same country, and the shipment is WYOL → VAT = 0
* Canada → Based on hub province
* Otherwise based on HS Code or hub country default rate

## Reconciliation Eligibility

Orders are only eligible for reconciliation when all products are assigned to parcels. Changing order status alone is insufficient.

## Shipping Costs

* Shipping costs are reconciled with the entity of the parcel’s products
* The shopper-paid shipping cost is attributed to the first parcel

## Returns

Return shipping costs and prepaid return costs are assigned to the entity of the first returned product’s parcel.

## Refunds

* Refunds for products are added to the same reconciliation report as the parcel from which the product was fulfilled
* Duties and taxes refunds are prorated across relevant entities and apply only to products where D\&T was paid
* Shipping refunds are assigned to the entity of the first parcel
* Service gesture refunds are assigned to one of the order’s entities

## Additional Notes

* One refund transaction may impact multiple reconciliation reports
* D\&T refund mechanisms follow standard handling rules