The short answer
Settlement reconciliation asks whether the marketplace paid the amounts its own records say it should pay. Contract auditing asks whether the underlying charges follow your negotiated commercial agreement. A payout can pass the first check while still containing a charge that fails the second.
An illustrative fee example
Suppose the applicable contract supports a ₹100 fee, the marketplace invoice shows ₹120, and the payout deducts ₹120. The invoice-to-payout fee difference is zero. The contract-to-payout fee difference is ₹20. This simplified example excludes other components and is not a statement of any marketplace’s actual fee policy.
Use different evidence
For a settlement difference, retain the source invoice or order record and the corresponding payout entry. For a contract difference, add the effective agreement, fee basis and expected calculation. A rate card without the applicable date or business model may not establish the amount owed.
Avoid counting the same issue twice
Both tests may describe the same underlying economic difference. Keep a unique exception identity and explicit reconciliation basis. Do not add a component overcharge and the resulting net-settlement shortfall together unless they represent distinct losses.
How the product makes it visible
The inspected reconciliation interface offers a Settlement basis and a Contract audit basis. Discrepancies also expose separate controls for the two views. This is the central product story: show the expected number, the actual number and the reason they differ.