Stripe Transactional Bank Account in Xero

Scenarios:

You are taking credit/debit card payments for bookings into your activity
Your Enrolmy account is integrated with Xero
You want to understand how Stripe Credit/Debit Card Transactions and Fees are processed through Xero

This document assumes the following:

You understand basic accounting principles and are a proficient user of Xero Accounting Software
You have completed Your Credit Card Set-Up Section
You understand how to Setup the Stripe Transactions Bank Account in Xero for Existing Enrolmy Account
You understand how to Setup the Stripe Transactions Bank Account in Xero for New Enrolmy Accounts

This article identifies the following

Benefits of Stripe Transactions Bank Account in Xero

Excellent visibility of all payments made via Stripe.
Accurate accounting of any Credit/Debit Card Fees charged to the Parent.
Clear accounting of Credit/Debit Card Fees charged by Stripe to you.
The ability to take Credit/Debit Card Prepayments.
Accurate recording of any refunds processed via Credit/Debit Card.
A clear balance of any money currently in your Stripe Account, at any given time.

How the Stripe Transactions Bank Account will operate in Xero

Stripe Transactions Bank Account in Xero will be created from the Xero integration settings area

2. Navigate to your Xero Dashboard where you will find your Stripe Transactions Bank Account displayed alongside your existing bank accounts

3. The Stripe Transactions Bank Account in Xero will operate like your other bank accounts, except, you won't be able to reconcile entries into it because all entries are already accounted for through the coding supplied through Enrolmy.

4. Please see the Contents of the Stripe Transactions Bank Account described below.

Name	Description
Description	Customer Name
Reference	Clear record of what was paid, i.e. Invoice detail or Fee detail
Payment Reference	More transactional detail as necessary
Spent	Money deducted from this account. This could be Stripe Fees or Credit Card Refunds and also payouts into your actual bank account
Received	Money received via Stripe. This could be Payments on Invoices, Prepayments, or Credit card Fees Charged to the parent (i.e.Customer Fees)
Balance	This is the running balance of your Stripe account. At any given time, this is the money in your Stripe Account

How To Manage Stripe Payouts

Stripe Payout information will appear in the:

Stripe Transactions Bank Account in Xero (as described above), and

Enrolmy Credit Card Payout Schedule (Money Tab → Credit Card Transactions → Payout Schedule)

Your Tasks

Please Reconcile Stripe Payouts as a transfer from your Local Bank Account to Stripe Transactional Bank Account once funds arrive.

Reconciliation Process

Everything Enrolmy syncs into the Stripe Transactions Bank Account will show as Unreconciled.

We advise that you do not reconcile any Stripe Transactions Bank Account transactions

The Associated Xero Accounts

When Setting Up your Xero Integration in the Xero settings area, the below Account Types must be selected.

Please note the following:

Enrolmy will create new accounts (identified below).
If you already have an account code you want to use instead, you will be able to select it, however
This does not apply to the Stripe Transactions Bank Account. It must be selected.

Bank Feed Item	Account Type Required	Description	Account Codes for Accounts Created By Enrolmy	Mandatory To Choose the Enrolmy Preset Option?
Stripe Transactions, including Credit/Debit Card transactions	Bank Account	Described Above	`EMYST-`[INITIALS OF THE ACCOUNT] - Stripe Transactions	Yes.
Platform Fees	Expense	For credit/debit card fees paid by you to Stripe	`EMY-CCFEE`	No. If you already have an account code for Credit Card fees, you can select it here.
Customer Fees	Revenue	For credit/debit card fees paid by customers	`EMY-CUSFEE`	No. If you already have an account code for credit Card fees paid to you by customers, you can select it here.
Credit/Debit Card Prepayments	Prepayment	For credit/debit card payments made by customers before an invoice is raised	`EMY-PP`	No. If you already have an account code for prepayments, you can select it here.

Other Considerations

Multiple Enrolmy Instances (Accounts) using multiple Stripe Accounts

If you are using:

Multiple Enrolmy Instances (Accounts), with
Multiple Stripe Accounts (i.e. a Stripe account per Enrolmy instance),
Synced to one Xero Account.

Enrolmy will:

Create separate Stripe Transaction Bank Accounts in Xero. One for each Stripe Account.
Each Account will have a unique reference in the name of the Stripe Transaction Bank Account.
Invoice Prefixes must be unique (the first 3 letters before the invoice number)

In this scenario, Invoice Prefixes must be unique

Please contact Enrolmy Support, if the below scenario applies to you:

If one instance is called “Jerrys Gym Alpha” their invoice prefix might be IN-JGA and their first invoice number might be IN-JGA-001000
If the second instance is called “Jerrys Gym Awesome” their invoice prefix will also be IN-JGA and their first invoice number will also be IN-JGA-00100
When the second invoice is synced then Xero will overwrite the invoice for the first instance because the invoice number is the same.

Reconciling Stripe Payouts

You may be unable to distinguish which Stripe Transactions Bank Account to reconcile a Stripe payout amount from when reconciling your Xero transactions.
You will need to check the Stripe Payout Amount against the Stripe Payout Schedule in Enrolmy. Then, reconcile the amount as a transfer from the correct Stripe Transactions Bank Account.

Multiple Enrolmy Instances (Accounts) using One Stripe Account

If you are syncing:

Multiple Enrolmy Instances (Accounts), that have been,
setup to use a single Stripe Account,
across all Enrolmy instances (accounts)

You will have multiple Stripe Transaction Bank Accounts in Xero. One Stripe Transaction Bank Account for each Enrolmy instance.

If you do not want multiple Stripe Transaction bank accounts for each Enrolmy instance, please contact Enrolmy Support.
We can set it up so that all Stripe Transactions reconcile to the one Stripe Transactions Bank Account.

Congratulations! You now understand how to manage Stripe Transaction Bank Accounts in Xero!

Last Updated: 09 Nov 2023