I am sometimes collecting payments with Stripe.
Stripe charges fees when clients pay. This Fee is calculated with the formula ( invoiceAmount + 0.3 ) / ( 1 - 0.029 ) to exactly match what Stripe will charge me, so that in the final result I get exactly what I actually worked.
Example:
I work 11 hours and hourly fee is 60, total I want in my pocket is 660.
If client pays with stripe, I would get 660 - (2.9%+0.3), therefore, I charge 660 + ( invoiceAmount + 0.3 ) / ( 1 - 0.029 ) in order to finally get 660 into my final pocket.
Fast forward to the moment I write invoice and receipt:
- I add two lines to the invoice so it is transparent to the client:
- account: sales (which is an income account), 660
- account: bank charges (which is an expenses account), 20.2
Total the client sees on invoice: 680.2
- Client pays to stripe 680.2, stripe charges fees, I remain with 660 sharp.
- I write receipt (sales invoice > create new receipt)
- by default ManagerIO will not add the second line I added in invoice, instead, it adds one line in the receivable account of 680.2
- by default this is now income. However, it is not: 20.2 is expense, as declared in the invoice…
- manually adding a second line to receipt, account bank charges (expense), does not solve that
- an entry is created in the bank charges account of
-1items, and the amount is credited instead of debited, as if I sold that charge like a good.
I am confused.
I do understand why ManagerIO adds one line to the receipt: that is what factually the client paid, so receipt shall show that, this is fine.
But the original invoice was made with 660 income and 20.2 expense (two lines)
This fee should be booked in the expense as an expense, not as an income.
Leaving the weird -1 in the bank charges account of 20.2 income and add a separate payment entry to the bank charge, amount 20.2, only resets to 0 - it doesn’t actually deduct the 20.2 since it once was sold and once was paid.
Thus the only way is to go and delete the amount from the invoice, which is absolutely wrong IMO, it tampers with the record, isn’t denoting what the client actually paid (for their tax purposes), and leaves me zero control over fees-per-client.
Goals:
- show the charge transparently, and without huge admin hassles, in invoice and receipt as a line, as I am used to see it on other invoices too (when they are transparent)
- have the books correct. I am not selling charges. I am “backcharging” charges to the client, and I never hold those fees, they are expenses for me too, immediately eaten by Stripe before I even can touch them.
Can anyone help me?
Thanks
This is similar, but the suggested solution doesn’t produce the results one would expect:
factually that client would see that he paid 680.2 - 20.2, which is not true.
We want to show the client that he paid 660 + 20.02, of course, and, the books can for what I carte show that as an income, as long as the 20.02 are also booked as expense.