This document describes how payouts to your bank account work when using Invoiced Payments. We also describe how to reconcile payouts in your bookkeeping.
When you receive payments through Invoiced Payments they will be added to your Invoiced Payments balance. You can check your balance any time in Settings → Payments → Invoiced Payments.
As you begin to receive payments, the Invoiced Payments balance will be paid out automatically in a batch to the bank account you've supplied at the payout frequency you've selected. You can choose to receive payouts daily, weekly, or monthly. Payouts will only be initiated on business days in which the banks are open.
Your Invoiced Payments balance includes all payments, refunds, fees, and disputes made since the last payout. This means that the payouts you receive will be payments received net of fees and refunds.
On the Invoiced Payments settings page you can see your current balance, the next scheduled payout date and amount, the 10 most recent payouts, and your payout settings.
If you process more than $10,000 in payments per week there will be a 7-day hold on funds before they are paid out. As you build payment history this limit can be increased by contacting Invoiced Support. If you know in advance that you will be processing more than $10,000/week in payments then you can contact Invoiced Support to proactively raise the limit. Generally statements from your previous payment processor are required to proactively raise the limit.
There are two reports available to help you reconcile your Invoiced Payments account and payouts to your bank account in your accounting system.
- Invoiced Payments Summary
- Invoiced Payments Detail
The Invoiced Payments Summary report will show you a total of the transactions that happened in your Invoiced Payments account in the given date range. There will be a total amount for several categories, including:
- Payments Received
- Refunds Given
- Payment Processing Fees
- Disputed Payments
On the summary report there is an opening and closing balance to help you do a bank reconciliation in your accounting system.
The Invoiced Payments Detail report contains a detailed transaction list of any transaction that happened within your Invoiced Payments account in the given date range. This report uses the same data as the summary report, except instead of seeing totals you can see the individual transactions, including date, customer, amount, transaction ID, and more. The detail report can be helpful in identifying differences between your books and the actual transactions that took place.
The types of transactions available include:
- Payment Processing Fees
- Dispute Reversals
In this section we are going to share techniques for reconciling payouts from your Invoiced Payments account. Generally there are two approaches for reconciling payouts. You can associate the transactions (payments, fees, etc) in each batch payout, or you can set up a clearing account in your chart of accounts. We have found that the clearing account approach is the fastest and most accurate way to account for Invoiced Payments.
Since payouts made to your bank account are net of fees and refunds, it can be tricky to match payments to a specific payout. We recommend using a clearing account approach where payments, refunds, and fees are recorded in the Invoiced Payments clearing account. Any payouts made to your bank account will be reflected as a transfer from the clearing account to your bank account.
If you are using the clearing account approach, then the opening and closing balances of the Invoiced Payments Summary report can be used in conjunction with your accounting systems' reconciliation feature. Most commonly a single expense entry for the processing fees will be recorded during the reconciled period, as opposed to recording an expense for each individual payment.
When using one of our accounting integrations, you can configure the integration to record any payment made through Invoiced Payments to the clearing account. If you are also