Journal entry flow when invoicing, and receiving funds through our stripe account.

Question

Hi, 
 I have just linked our Stripe account with our Sage software. Before I begin using this feature I would like to make sure I have it set up correctly and that I know what the flow of Journal entries will be. 
 When I create an invoice through the receivables I see that the invoice is posted to: 
 JE = Dr. A/R 
 Cr. Revenue 
 Once Stripe receives the money everything is posted automatically. This is what I assume will happen. If someone could confirm if I am correct or not. 
 Stripe receives the payment from our customer: 
 JE = Dr. Online Payment Receivable 
 Dr. Online Payment Fees 
 Cr. A/R 
 Then when stripe deposits the funds into the company bank account: 
 JE = Dr. Bank Account 
 Cr. Online Payment Receivable. 
 Is this correct? 
 Thanks 
 Emily

Ginkgo Bike · Answer

If you use journal entries to pay the invoice the invoice will never show as being paid, you must make the payment using the receipts module or the payment will not be linked to the invoice. You should test this on a test copy of your database to confirm! You may have to set up one of the temporary accounts for stripe to allow the funds to show as a bank for it to be available in the payment module. I am not an accountant so I may not be using the correct terminology!

Richard S. Ridings · Answer

Based on your message subject, I would say that you likely have the correct sequence (see assumptions below). What Ginkgo Bike is indicating is also correct but only if you are using Sage 50 for posting invoices in the Sales/Receivables module and he is referring specifically only to General Journal entries. His advice is good about testing on a copy of your file as long as you can import the information from Stripe multiple times. Always back up your file before you import from a third-party product. 
 My assumptions are what you indicated in your subject message. Invoicing and receiving funds is done through the Stripe program and both are posted directly to the Sage 50 Canadian program through General Journal Entries. I am not assuming that invoicing is done in Sage 50 and the receiving of money is done through Stripe and posted directly to the company file. 
 I took a quick look at the Stripe website because most companies ignore Sage 50 Canadian in their integrations but apparently they have a good developer program. I am assuming you are doing the posting through that method and that you are properly posting to the correct modules. 
 Lastly, I assume you ignored sales tax for simplicity but if not, your original journal entry should have included sales tax if it is applicable on your sales.

Sage 50 Canada

Journal entry flow when invoicing, and receiving funds through our stripe account.

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING