How to manage Credit Card Payments when the Funds are received in Xero
This document helps you understand how to manage and what happens to the payments made by credit card on your activities.
How to Manage Payments - When cash lands in your Xero account
1. How to recognise your payments
When you receive your payments for credit card transactions, you receive these in Xero as a lump sum payment, these payments will be a combination of payments which were recorded in a day. Eg. $25 was paid on the morning of Nov 1st, then $25 was paid on the afternoon of Nov 1st. In Xero those payments will collect as $50.
You can find out what payments you should receive in the payout schedule in Enrolmy, by also selecting the lump sum amount you can see what is included as payments
2. What to do when cash hits your account
Firstly head into your Enrolmy account and undergo a xero sync.
Log in > Select the + and Xero Sync from the drop down > Authorise access by logging in then launch xero sync.
All credit card payments made by a customer are made against the associated invoice, this will mark the invoice paid in Enrolmy immediately. When you conduct your sync those paid invoices will flow through to Xero and mark them paid in Xero also.
The final stage is to receive those lump sum payments which will be many paid invoices as one drop, always remember that the lump sum amount will be minus the fees, so you will see that perhaps a few days of transactions added together will total the lump sum amount less a few dollars.
Here's where to view the breakdown of credit card transactions in Enrolmy as you cannot see that in Xero - https://enrolmy.force.com/help/s/view?article=Credit-Card-Transactions-Reporting&cat=Reporting_Data to find this without the link, head to money tab > credit card transactions tab > payout schedule tab > then click into a day that your xero payment relates too and you will be shown the breakdown of that lump sum into each correlating invoice/payment.
3. Coding the payment
Now navigate back to Xero and code the lump sum payment into the EMY-CCSUSS account in Xero. As per example below.
Please now read the following document which explains how Enrolmy creates journals in Xero for you to manage these payments:
Cash / Online Bank Transfers in Xero + Enrolmy
1. If you choose to accept direct credit payments these will appear in your bank account and Xero, these do not automatically mark off against any invoices and have no way of doing so without you reconciling these payments against an Enrolmy invoice.
1. Reconciling with Xero
1. Ensure the invoice exists in Xero that you wish to reconcile against, if not head to Enrolmy and carry out a Sync.
2. When the invoice is in Xero under that customers record, then you are able to reconcile the payment in your account: From your dashboard, and payments to reconcile, select the credit, find & match and search for the customer and the relative invoice, complete the reconciliation by clicking reconcile, then SYNC
3. Check both Xero and Enrolmy to confirm the invoices are paid in both.
2. Reconciling with MYOB, Kamar & Other's
1. If you are using an accountancy system which does not currently sync with Enrolmy, the steps to mark those invoices paid are manual [FOR OTHER ACCOUNTING SYSTEMS THE STEPS TO MARK THOSE INVOICES AS PAID ARE AS BELOW].
2. Check the payment made matches the amount you are expecting, locate the associated invoice in Enrolmy
3. Select the invoice and enter the amount and date paid to the bottom of the invoice with any notes needed
4. Save, this will then mark the invoice as paid, you can select to send the customer a receipt at the bottom of the invoice which will be automated when you hit save.
Refunding Credit Card Payments
If you would like a customer to be refunded you can refund back to their bank account.
Alternatively the customer can be refunded directly back to their credit card, please follow the following processes for each
*Please note when the refund is processed by us to the card, we will raise a credit note for this and provide the credit note number upon completion*
Where are refunded monies deducted from?
Understanding this process is important so that you can work out payments correctly, you might see some which may not seem correct at first glance, and this could be due to previous refunds.
When refunds are made back to a persons credit card the funds are issued from Stripe, ie, no money actually leaves your account at that time for the refund, to which you had already received and been paid for.
What happens in the refund process is the following, its good to take notes of refunds so it helps you later.
When your next payout lump sum is due, and subsequently received from Stripe into your bank account, this will have the deduction reflected, so at a glance it could look like you have not received the correct funds for the transactions you were expecting, when in-fact you have, but they are minus the refund from a payment received earlier.
Stripe is holding $1000 of credit card payments for recent transactions yet to be released into your bank account, you had lodged a ticket with us asking to generate a CC refund of $100 for a customer of which was processed, Stripe had refunded that $100 to the customers credit card, and that claw back will come from the $1000 they are holding in payments for you.
When Stripe release the payment to your xero/bank account, you will see $900 deposited from Stripe (This is minus the $100 refund
To see all credit card payments received with their anticipated payout date and schedules, go to Money, Credit Card Transactions, then you will see the following tabs and information
On the 8th Oct 2018, we generated $508.23 of refunds back to credit cards, this is shown by the negative -$508.23.
Then on the 9th of October; $1000 of Stripe payments are collected.
You will then see that on 12th of October, Stripe will payout $491.77 being the difference in the collected amount and deductions / refunds made ($1000 - $508.23) to your bank account.
It may be good practice to keep a refund log, this will help if ever you are unsure of totals.