Reconciling Payment Service Providers

Fast Four Bank Reconciliation can be used to reconcile Payment Service Provider (PSP) payments. This document explains how.

Common Use Cases

• In a webshop customers place an order online. Customer pays through a Payment Service Provider. An integration creates an order, invoice and payment in NetSuite.

• Upon placing an order, users directly charge the credit card of the customer from NetSuite

• User sends out an invoice from NetSuite containing a ‘Pay Now’ button. Customer clicks the button and pays the invoice online.

High-level Process

Prerequisites

• Decide on what unique reference to use. This reference must exist:

  • In NetSuite on a transaction, in either a custom field or standard field

  • In the Transaction Detail Report retrieved from the PSP, that is used to import to Fast Four Bank Reconciliation

• A transaction exists in NetSuite

• The transaction contains the unique reference

As a reference, a unique reference generated by the PSP is often preferred. Because when using a Sales Order ID or Invoice ID, any refunds may also get the Order ID as a reference, instead of a unique separate PSP reference. Whether this is a problem depends on the use case.

Possible Transaction Types existing in NetSuite

Based on business needs, several processes are possible. One can for example let a webshop create a Cash Sale transaction in NetSuite. Others may choose to create a Sales Order and a Customer Deposit on the Sales Order to record the payment. Fast Four Bank Reconciliation can handle multiple scenarios.

For companies selling products that need to be shipped from a warehouse (and that shipment is tracked in NetSuite using an Item Fulfilment), option 5 is preferred.

For companies selling services or products not needing a shipment, option 2 or 6 is preferred.

Process description

This section gives a written representation of the process.

1. An integration creates a transaction in NetSuite. This transaction contains a unique reference in a field.

2. User downloads a transaction detail report from the PSP and imports in NetSuite (optionally a direct integration is used and this step is skipped)

3. The application will automatically process payment fees deducted by the PSP and place the total as an extra line on the statement. This line can be posted to an expense account. The full amount paid by the customer will be applied to the transaction in NetSuite.

4. User reviews unmatched lines

5. User submits the statement

Configuration

• Create an account in the chart of accounts of type Bank for the Payment Service Provider. If you transact in multiple currencies with this PSP, create multiple accounts, one per currency.

• Review the import file (often csv). Create a bank account configuration record for the import file (or multiple, if the file contains data for multiple bank accounts). As Amount, use the amount including deductions by the PSP (commissions and fees).

• Pay specific attention to the Commission/Fee columns. Add these columns to automatically process the deductions that the PSP made. The total amount in these columns will be placed as one extra line on the imported statement that can be posted to an expense account.

• If the file contains data for multiple bank accounts (e.g. multi sub, multi currency), also create a Multi-Statement Configuration record.

• Add the field ID of the NetSuite field that contains the unique reference number as a matching parameter.

• Create a Custom Matching Rule with description contains ‘TOTAL COMMISSION/FEE’ to automate posting this commission line to an expense account.

• OPTIONAL: setup an auto-import process if an integration places the file in the NetSuite file cabinet. This step is not required if a manual import is used.

After the configuration, run a test import.