Stripe Cash Receipts and Payouts

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When a client makes a payment online, Design Manager automatically records the cash receipt in your DM checking account for you via the Undeposited Funds account. The system will also post the proper entries to record the processing fees that you incur from the credit card processor (Stripe), in the form of a miscellaneous cash receipt. These steps will help to make reconciling your checking account much simpler as the amounts posted in DM will match the Stripe payout amounts in your bank account.

 

Setting the Payment Processing Fees Account

Design Manager will attempt to create a new expense account for the Payment Processing Fees.  This account will be added to the general ledger as 63300. The account will also be selected as the account for the Payment Processing Fees field under the Payable Accounts in the Company Information - Other Accounts tab.  This account will only be used if you do NOT pass the processing fees on to your clients.

NOTE:  If this account number is already in use in your general ledger, you will need to manually create (or select) an expense account to record these Processing Fees to. Once you have the proper expense account, you will need to add this account to the Other Accounts tab in the Payment Processing Fees field.

 

When the processing fees are being billed back to the client, they will be recorded using the COGS account (59600) linked to the Sales Category selected under the A/R & Showroom tab of the Company Information - Stripe Payment Defaults.

 

Cash Receipts

When your client makes a payment online it is passed back to Design Manager to create a cash receipt.  The total receipt will consist of at least two parts: the amount paid by the client (1 per document paid) and one for the processing fee. The deposit will sit in Undeposited Funds (on the Make Bank Deposit tab) until Stripe processes their payout (generally 3-10 business days).  Once the payout has been created, DM will automatically move the money out of Undeposited Funds and into the checking account linked to the Stripe pay type.

 

Fee is charged to client and not taxable

When charging the processing fee back to the client, there will be at least 3 entries inside the total deposit.  One for the amount paid on the document (1 entry line per proposal deposit or invoice payment paid), another for the total fee charged to the client (via a new invoice) and a final amount for a negative fee that will process as a miscellaneous cash receipt against the COGS account linked to the Sales Category selected under the A/R & Showroom tab of the Company Information - Stripe Payment Defaults (ie: 59600).

 

For example: A Client has an Invoice with $85.86 due - they pay via ACH and incur a 1.2% fee.  The client pays a total of $86.89.

The total cash receipt in DM will be for $85.86; inside this entry there will be 3 parts.

$85.86 payment on the invoice (ie: #10484)
$1.03 payment on invoice (ie: #10492 for fee amount they paid)
 - $1.03 miscellaneous cash receipt entry against the COGS account (ie: 59600) for the convenience fee

 

Total Cash Receipt Example: Payout_TotalCR_FeeChargedNoTax_Example

 

Distribution Example:

Payout_CRDistribution_FeeChargedNoTax_Example

 

*When the fee is taxable, the entry will be similar to above; however, the amount of the invoice for the convenience fee will be more than the miscellaneous cash receipt to the COGS account; as the sales tax amount is not part of the Stripe fee.

 

Payout_TotalCR_FeeChargedTaxed_Example

 

Payout_CRDistribution_FeeChargedTaxed_Example

 

 

Fee incurred by your company (you do NOT pass fee on to the client)

When you are not charging the processing fee back to the client there will be 2 entries inside the total deposit.  One for the amount paid on the document (the proposal deposit or invoice payment), and another amount for a negative fee that will process as a miscellaneous cash receipt against the Payment Processing Fees account (ie: 63300).

 

For example: A Client has a Proposal deposit with $80.25 due - they pay via ACH but are NOT charged for the processing fee of 1.2% fee. The client pays a total of $80.25.

The total cash receipt in DM will be for $79.29; inside this entry there will be 2 parts.

$80.25 deposit on proposal (ie: KAP01-0036)
 - $0.96 miscellaneous cash receipt entry against the Payment Processing Fees account (ie: 63300)

 

Total Cash Receipt Example:

Payout_TotalCR_FeeNotCharged_Example

 

Distribution Example:

Payout_CRDistribution_FeeNotCharged_Example