Overview:
What is customer balance?
The customer balance in Stripe is like each customer’s wallet. It shows how much money they owe (negative balance) or how much credit they have (positive balance). Stripe uses this balance to keep track of payments, credits, and outstanding invoices.
Key points:
Positive balance (credit):
If a customer pays more than they owe or you give them a credit, it shows as a positive balance. This credit can automatically go toward their next bill.
Negative balance (debt):
If a customer hasn’t paid an invoice, their balance will be negative. This shows how much they still owe.
How it works:
Adding credit: You can add funds to a customer’s balance for refunds or promotions.
Using credit: Stripe applies the credit to their next invoice or purchase.
Tracking unpaid invoices: Stripe shows negative balances until the invoices are paid.
Where to find it:
You can find the customer balance in their profile on the Stripe dashboard.
Example:
If a customer owes $100 and pays $120, they’ll have $20 credit. Stripe will apply this $20 to their next invoice.
If they owe $100 and don’t pay, their balance will show -$100.
How does Synder handle customer balance transactions?
Synder records the Stripe-applied balance item and assigns the amount to match the applied balance. Let’s explore two scenarios:
Invoice in Stripe fully paid with the customer balance.
Stripe balance:
Stripe invoice fully paid with the balance:
The result in your accounting company (in this example, QuickBooks Online):
The amount owed by a customer is 0.
Invoice in Stripe partially paid with the customer balance.
Stripe Invoice:
The result in QuickBooks Online:
It reduces the amount owed by a customer, and the invoice remains partially open.
Where can I track Stripe-applied balances?
The best approach is to double-check with your accountant. In the meantime, you can choose how to track Stripe-applied balances in QuickBooks Online. You can either:
– Link it to an Income account.
– Or use a customer balance liability account to track it as a liability.
Note: If you go with the second option, you’ll need to add some funds to the customer balance liability account first. Otherwise, this account will always show a negative balance, since Synder syncs the customer balance liability item as a negative line item.
Steps to change the account in QuickBooks Online if needed:
- Log in to QuickBooks Online.
- Click the gear icon in the top-right corner.
- Select Products and Services from the menu.
- Find the Stripe-applied balance item.
- Click Edit next to it.
- In the income account field, select the account where you want to track the balance.
- Check the box for Also update this account in historical transactions to make sure past transactions are updated too. This process ensures all transactions with applied balances are recorded correctly in QuickBooks Online.
- Click on Save and close.
Reach out to Synder Team via online support chat, phone, or email with any questions you have – we’re always happy to help you!