Stripe payments against invoice of Freeagent

[BearSitesAndy]

Just started using Freeagent with Mettle bank.

Sent invoice to client and they paid via Stripe. Payment cleared, money in bank account minus Stripe processing fee and Freeagent said payment complete.

But invoice remains unpaid because it doesn't recognised the payment due to it being less than the invoice amount because of the Stripe fee. If I try to explain the Stripe transaction against the invoice, it accepts it, but doesn't set the invoice as paid because the transaction is less than invoice and shows the client owes and amount equal to the Stripe payment fee.

 

[Daybooks]

Your customer paid in full.

You need to account separately for fees charged by Stripe.
Simplistically you need to take the net receipt and spilt it between the gross customer receipt less the fee and allocate the two accordingly.

There are simple and more complex ways of doing this; sometimes you are confined to the software you are using.

 

[Scalloway]

I get around this situation by issuing a credit note set against bank charges. The credit is not sent to the customer.

 

[Paul Kelly ICHYB]

Whilst I have Freeagent, I do not use it, however, how does the process work exactly?

Using another accounts software package, the invoice is paid via Stripe and the accounts software marks it as paid in full. There is a difference for reconciliation, but you can simply 'fiddle' the process by entering Stripe fees in monthly, so the bottom line figures are correct.

You need to set Stripe us as a bank account and payments go through that.

 

[Daybooks]

Whilst I have Freeagent, I do not use it, however, how does the process work exactly?

Using another accounts software package, the invoice is paid via Stripe and the accounts software marks it as paid in full. There is a difference for reconciliation, but you can simply 'fiddle' the process by entering Stripe fees in monthly, so the bottom line figures are correct.

You need to set Stripe us as a bank account and payments go through that.

It is a theme that keeps cropping up and no doubt will again.

https://www.ukbusinessforums.co.uk/...usiness-cloud-accounting.427022/#post-3242341

The process is understanding the accounting entries for the transaction that has taken place: a receipt for the full customer amount and a separate payment for the fees that in total equates with the net receipt into the bank.

An issue can be introduced with bank feeds when retrospectively posting the cash book items. Unless the feed allows you to make the two postings required then it creates the problems being experienced. Bank feeds are just a tool and some tools are simply not suitable for the task in hand. Either do not use the bank feed for this entry or if you do then you find the “workarounds” - one suggested by @Scalloway.

 

[MyAccountantOnline]

Just started using Freeagent with Mettle bank.

Sent invoice to client and they paid via Stripe. Payment cleared, money in bank account minus Stripe processing fee and Freeagent said payment complete.

But invoice remains unpaid because it doesn't recognised the payment due to it being less than the invoice amount because of the Stripe fee. If I try to explain the Stripe transaction against the invoice, it accepts it, but doesn't set the invoice as paid because the transaction is less than invoice and shows the client owes and amount equal to the Stripe payment fee.

FreeAgent have some really good detailed guidance on this here -

https://support.freeagent.com/hc/en-gb/articles/115001223524-Take-invoice-payments-with-Stripe