I have started using stripe for customers to pay invoices, for example if I raise an invoice for £100, I then send my customer a stripe link to make payment of £100, after a few days when stripe release the payment to me, I receive the £100 minus the fee taken by stripe, e.g £97. Now the issue i am having is that the invoice has been fully paid by the customer but on quick file when I tag the payment of £97, the invoice is partially paid as the £3 has been taken by stripe. How can I make the invoice fully paid?
You need to create another bank account to record the fees etc.
When a customer pays the invoice, under the new bank account create a money in transaction for £100 tag it to the invoice.
Then create a money out transaction for £3 and tag it to stripe fees
The balance left is £97. Create a money out transaction for £97 and tag it as a bank transfer to your bank account matching the money you received.
There’s a knowledge base article on accounting for payments coming via a payment service provider which lays out the steps. It’s basically what @Paul_Courtier described but rather than tagging each individual fee separately, in the case of Stripe in particular they will issue you a “tax invoice” once a month for the total of the previous month’s fees, which you can log as a purchase paid from the stripe holding account to clear the whole month of fees in one go.
If you’re VAT registered then Stripe say this invoice is subject to the reverse charge, which is a bit of a pain to record properly in QuickFile, again there are past threads that talk through the details (sadly the “apply reverse charge” checkbox doesn’t do the right thing on its own).
If you go to 3rd Party Integrations and add Stripe there most of the work is done for you, you don’t need to manually create all the accounts and transactions.
I had this on my previous account of quickfile and i had the same issue as above re the difference in the original payment out vs net amount received . Since the card payments are a handful, i tried the method paul has advised and it has done the job.
Slightly off-topic, but on a purchase invoice, when a supplier charges you for carriage/postage separately, would you input the postage/carraige as general purchase or would u record it in the
postage/carriage category. Would like to know your thoughts @ian_roberts@Lurch@Paul_Courtier
I tend to record it as “carriage” but it doesn’t really make much difference as it’s in the same section (cost of sales) as general purchases. My understanding is that “carriage” is a cost of sales code for the cost of getting your purchases shipped to you, whereas “postage & carriage” is an overheads code for the cost of sending things to your customers (and “distribution & carriage” is an income code for where you charge shipping separately on your sales invoices).
I tag everything through the receipt hub so most purchases are tagged to a single nominal. The only time I would specifically list the postage separately would be if the supplier hadn’t charged the VAT on the carriage, but even then it would still be under the general purchases nominal.