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Intuit
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How to reconcile stripe payments

This article outlines the steps for reconciling Stripe QuickBooks Online account while waiting on a dispute. It also provides answers to frequently asked questions.

Record the dispute and fee

First, you need to record the dispute and fee.

Create a special income account to categorize disputes:

  1. Select the Settings ⚙ icon.
  2. Under Your Company, select Chart of Accounts.
  3. Select New then enter the following information
    • Account Type: Select Income
    • Name: Enter "Disputes"
    • Detail Type: Select Discounts/Refunds Given
    • Select New under the Toolbar then enter the following information:

Create special line items you'll need to record the dispute:

  1. From the left menu select Sales, then choose Products and Services.
  2. Select New, then select Service and enter the following information:
    • Name: Enter "Dispute"
    • SKU/Description: Enter "Customer dispute" (you can change the description to be specific in the next step)
    • Income Account: Select the Income account you created in Create a special income account to categorize disputes
    • Is taxable: Check the box if the disputed payment is taxable
    • Sales price/rate: Leave blank.
  3. Select Save and New.
  4. Enter the following information:
    • Name: Enter "Dispute Fee"
    • SKU/Description: Enter "Dispute Fee" (you can change the description to be specific in the next step)
    • Income Account: Select the Income account you created in Create a special income account to categorize disputes
    • Is taxable: Leave unchecked
    • Sales price/rate: Enter $10
  5. Select Save and Close.

Record the dispute using refund receipt:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Customers choose Refund Receipt.
  3. Enter the required information:
    • Customer: Select the disputing customer
    • Payment Method: Select Add New then enter Dispute and Save
    • Refund From: Choose Undeposited funds
    • Product/Service: Choose Dispute and Dispute Fee
    • Description: Enter amount of dispute (Optional: change description to record a memo about the dispute)
    • Amount Fee: Enter $10
  4. Select Save and Close.
Note: Disputes will show up as a negative income (if you dispute and win, this account will no longer be negative).

Record the deposit from which the dispute and fee are deducted

When the next deposit occurs (from which the dispute and fee is deducted), the customer will see the following alert banner on the home page. After you see the alert take the following steps:

1

  1. Select Take Action. This will take the deposits to the Bank Deposits screen.
  2. Select any regular payments that were part of the deposit. If there's none, skip to the next step.
  3. Select the refund receipt created in Select new then enter the following information
  4. Record the processing fee for the payments that were deposited (i.e. regular processing fee, not dispute fee).
    • If there's none, skip to step 5.
    • If you need to record fees, complete the following information:
      • Received From: Select QuickBooks Payments or whichever vendor we use for regular fees
      • Account: Select Processing Fee or whichever account used for regular fees
      • Amount: Enter the calculated fee amount
  5. Save the deposit.
  6. If the deposit is negative, go to the Add funds to this deposits section then record the amount withdrawn from your account. (Note: This is only required if the money was taken out of your checking account [when there's not enough payments in this step to offset the dispute and fee]).
    • Received From: Select QuickBooks Payments or whichever vendor we use for regular fees.
    • Account: Checking
    • Description: Amount withdrawn to cover dispute
    • Payment method: Nothing or add the description dispute
    • Amount: The amount required to make the total at the bottom of the form = 0 (Don't use Selected Payments Total or New Deposits Total).

Record deposit of the won dispute manually (only for deposits that have won)

Lastly, you will need to record the deposit of the won dispute manually:

Record invoice for amount you got back (only if you won the dispute).

Record deposit manually

  1. Select any payments that were part of the deposit (if none, skip to step 2.)
    • Select QuickBooks Payments to view payments waiting to be deposited.
    • Select any payments that were part of the deposit.
  2. Select the invoice (for the amount you won).
  3. Record the processing fee for the other payments that were deposited (i.e. regular processing fees. Not the amount that you won).
    • Received From: Select the vendor used for regular fees
    • Account: Select Processing Fee or whichever account used for regular fees
    • Amount: Enter the calculated fee amount
  4. Save the deposit.

Now you know how to reconcile Stripe payments.

Frequently Asked Questions

Here are answers to questions you may have about Stripe dispute reconciling.

To know more about the dispute, please see: Stripe Dispute Process.

It helps you keep your QuickBooks Online as accurate as possible. It also prevents errors in accounting at the end of the year.

It may take up to 75 days to settle if you are challenging the request. You can record the disputed transaction whenever you like, but it's recommended to keep as up to date as possible to avoid big accounting errors down the line.

Where to find additional information

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