- You are taking credit card payments for bookings into your activity.
- You want to understand how Stripe transaction fees are processed through Xero.
- You want to know how to account for your Stripe fees inside Xero.
- You have completed the credit card setup section
- You understand basic accounting principles.
- You are utilising Xero as your accounting software
- You are utilising Enrolmy's Xero Integration
Stripe Fees Explanation
If you are utilising Enrolmy's Stripe integration, then you should know that...
- For every parent that pays for an invoice on Enrolmy through a credit/debit card, there is a fee associated with that transaction
- The fee that is associated with every parent credit/debit card transaction is logged and tracked through the following methods
- The EMY-CCFEES account - When you set up your Xero Integration; Enrolmy automatically creates an account called EMY-CCFEES (Enrolmy Credit Card Fees Suspense Account) inside Xero.
- Stripe Fees journals - Every month, Enrolmy will post a journal to the journal's section inside your Xero Organisation. The journals section will allow you to break down credit/debit card transaction fees, month by month.
Please note that the EMY-CCFEES is a general ledger account, and the Stripe Fees journal is created as a manual journal.
How The EMY-CCFEES Account Is Created Inside Xero
When setting up the “Chart of Accounts” via the Xero Integration tab within your Organisation Settings; Enrolmy will automatically create the following two accounts for you:
- a suspense account.
- a credit card fees account.
Pre-existing credit/debit card account inside Xero?
If you already have a Suspense Account set up in Enrolmy, you will need to update your Xero account map to set the account for the “Credit Card Payment Suspense Account” and “Credit Card (Stripe) Fees Account”. With the automatic creation of these accounts, they will be automatically selected for new providers.
Stripe Fees Journals Information
One Stripe Fees Journal will be created for every month. The Stripe Fees journal appears inside Xero after the first xero sync of the month occurs. You should know that;
- The Stripe Fees journal will appear in the drafts journal section if it is the journal for the current month. This is because the journal for the current month will change as the month goes on.
- The journal for the month will appear in the posted tab once the month has finished. Posted journals will not change.
- Each journal shows the fees collected for each day of the month.
- Each fee line item on the EMY-CCFEES account and monthly journal will be dated. The date connected to each fee line item, is the same date that the parent's credit/debit card transaction took place.
How To Find Stripe Journals Inside Xero
- Click on the Adviser tab.
- Select Manual Journals.
- Click on the Posted tab.
- You can see how the fee values have been processed here.
Congratulations! You now know how Stripe fees are managed in Xero.