Stripe payouts in NetSuite
Use the connector to automatically reconcile Stripe payouts to NetSuite bank deposits.
The Stripe Connector for NetSuite automates the cash reconciliation process for any payments, refunds, or disputes processed by Stripe. In addition to creating bank deposits in NetSuite for all of your Stripe payouts, the connector records fees and automates currency conversion. The connector records all fees and transactions associated with a payout into a single deposit record.
How it works
When you use the connector, the automated cash reconciliation process occurs as follows:
- Each Stripe transaction results in a bank deposit that’s posted to the
Undeposited Fundsaccount in NetSuite. - The connector moves the bank deposit from the
Undeposited Fundsaccount to the bank account specified on the deposit. - The connector records fees and reversals as line items on the NetSuite deposit:
- Stripe fees or fee refunds:
Cash BackandOther Deposit - Dispute fees or dispute reversals:
Cash Back
- Stripe fees or fee refunds:
- The deposit posts to the NetSuite bank account connected to your Stripe account.
- The connector verifies that the total amount on the deposit record and transaction date match your bank statement.
Note
If the deposit doesn’t match the payout, the connector adds a note to the memo field to notify you of the mismatch. This can happen if the connector isn’t set up for certain Stripe or NetSuite configurations, or if you have transactions from before the record sync start date.
Payout validation process
Every Stripe transaction in a payout goes through a validation process that compares the payments, refunds, and disputes against their corresponding NetSuite records.
The connector validates that the records:
- Aren’t already deposited
- Are posted to the
Undeposited Fundsaccount - Have matching amounts between NetSuite and Stripe
Successful validation
If all transactions in a payout pass the validation process, the connector creates a deposit that’s linked to the associated transactions. This action changes the status of any payments refunds from Not Deposited to Deposited.
Unsuccessful validation
If a payment, refund, or dispute fails the validation process, the connector doesn’t sync the payout to NetSuite. Your administrators receive a notification email that provides information about which records failed validation and the reasons why. Learn about the potential errors you might receive and how to fix them.
The connector automatically retries syncing if payout validation fails, or if you update a payout in Stripe (for example, by adding metadata). You can also manually retry a payout through the synced records drawer.
Types of fees
Different actions in Stripe can result in fees. Most fees post to the Payment fees category, by default. If applicable, you can customise the accounts used for these fees in the Stripe app under Settings > Accounts mapping. To do so, disable Only show accounts used and optionally set a specific expense account for each fee type.
| Fee type | Description |
|---|---|
| Payment processing fees | These fees appear in the Payment fees category and are distinct from fees charged by Stripe for other services outside of payment processing. |
| Stripe fees | These fees are for Stripe software and services such as premium support, fraud protection, connectors, and so on. These fees post to the same account as payment processing fees; however, you can customise the accounts you use for these fees. |
| Application fees | Applications charge these fees for taking actions in your Stripe account on your behalf. For example, an event ticketing system might charge you a fee for each ticket you sell. The fees charged by third-party applications appear aggregated on each payout and post to a unique expense account. |
| Interchange Plus pricing and fees (IC+) | IC+ is a special type of pricing provided by Stripe and changes how your account represents fees. Because Stripe receives the fee amount later and directly from the card networks, you won’t see any fees when you look at a charge in the Stripe Dashboard. You also won’t see IC+ fees in your Stripe test environment payouts. When you receive a bank payout, fees record under two categories: network fees and Stripe fees. These fee categories are controlled by the Processing fees and Stripe fees categories in the Stripe Dashboard. You can post these fee categories to unique income accounts in NetSuite. |
Multiple currencies and currency conversion
Stripe supports charges and payouts to bank accounts in multiple currencies. If your Stripe account has multiple bank accounts with different currencies, you need to provide the NetSuite bank account that you want the connector to use for each bank account. You can customise the accounts used in the Stripe app under Settings > Accounts mapping.
Subsidiaries
If you use NetSuite OneWorld and have multiple subsidiaries, the subsidiaries must match across the different record types.
For example, the fee account subsidiary must match the bank account subsidiary. Or you must assign the subsidiary to a parent subsidiary with the Include Children setting enabled in NetSuite. The subsidiary associated with all payments customers must match the bank account subsidiary. If you use the connector to create customers and payments, the connector handles this automatically.
Automatic payouts
The connector requires you to set up automatic payouts in your Stripe account. This allows the connector to monitor payouts sent automatically and reconcile the transactions in the payouts with the created records in NetSuite.
To set up automatic payouts, go to the External payout accounts and scheduling page in the Stripe Dashboard. Set the payout schedule to Automatic every day.
NetSuite can create and send up to 10,000 transactions. Setting the payout schedule to daily maintains a lower volume per payout and prevents backups and errors. If you have a low transaction volume, you can also set the payout schedule to weekly.
If you use manual payouts:
- Deposit automation won’t work. This includes recording fees and disputes, or handling currency conversion.
- NetSuite payments aren’t mapped to any specific charges, refunds, or disputes.
- All payments, refunds, and disputes post to, and remain in, the
Undeposited Fundsaccount. You must manually manage these transactions. - The connector can’t include specific payments in a deposit or move them out of the
Undeposited Fundsaccount to your bank account. - Invoices, cash application, and refunds reconcile and sync as expected.
Note
If your NetSuite deposit doesn’t appear as a deposit of funds to your bank account, your bank might block debit payouts. In this case, the payout still syncs to NetSuite as if it succeeded. However, if your bank blocked the debit payout, it won’t appear on your bank register. To resolve this, you must group the blocked debit payout with the successful payout from Stripe.
Test payouts with the connector
Similar to the Stripe production environment, payouts are created automatically in your test environment.
To test syncing payouts with the connector, you need to wait for a payout to bundle your test charges and refunds. Use a test card to move funds directly to the available balance instead of the pending balance.