Issuing credit memo via Stripe

Introduction

This article guides users through the process of issuing credit memos via Stripe on the Platform. It covers the manual refund process, Business Central posting procedures, and synchronization requirements. The article emphasizes that automatic credit issuing via Stripe is not currently supported and provides alternative solutions for processing refunds.

In this article:

• Manual Refund Process
• Business Central Credit Posting
• Platform Synchronization

The Platform does not currently support automatic credit memo issuance via Stripe. When credit processing fails through Stripe's automated system, users must follow a manual three-step process to complete the refund and update the platform accordingly.

Manual Refund Process

The first step in issuing a credit memo involves processing the actual refund to the customer. This can be accomplished through two methods:

Option 1: Stripe Dashboard Refund Navigate to your Stripe dashboard and locate the original payment transaction. Process the refund directly through Stripe's interface, which will automatically handle the payment reversal with the customer's financial institution.

Option 2: Wire Transfer Refund For situations where Stripe dashboard refunds are not feasible, you can process a manual wire transfer directly to the customer's bank account. Ensure you have the correct banking details and follow your organization's wire transfer procedures.

Business Central Credit Posting

After completing the customer refund, you must post the corresponding credit entry in Business Central (BC) to maintain accurate financial records.

Important Credit Posting Requirements:

• Use a positive amount when posting the credit in Business Central
• The credit amount should match the original invoice amount exactly
• This positive posting will offset the original invoice, effectively closing it in the system
• Ensure the credit is applied to the correct customer account and invoice reference

The positive amount posting is crucial because it creates the necessary accounting entries to balance against the original invoice, resulting in a net-zero effect that properly closes the transaction in your financial system.

Platform Synchronization

The final step in the credit memo process involves the automatic synchronization between Business Central and the Platform.

Synchronization Process: The daily synchronization process between Business Central and the Platform will automatically detect the credit posting and update the corresponding payment status. This ensures that:

• The original invoice status is updated to reflect the credit application
• Customer account balances are accurately maintained
• Reporting and analytics reflect the completed refund transaction
• No manual intervention is required for platform updates

Limitations

The current implementation has the following limitations:

• No Automatic Processing: Stripe credit memos cannot be processed automatically through the Platform
• Manual Intervention Required: All credit memos require manual processing through the three-step workflow described above
• Daily Sync Dependency: Payment status updates depend on the daily synchronization schedule between Business Central and the platform
• Stripe Integration Limitation: The platform does not support direct integration with Stripe's automatic credit memo functionality

Summary

Issuing credit memos via Stripe on the Platform requires a manual three-step process due to current system limitations. Users must first process the customer refund through either the Stripe dashboard or wire transfer, then post a positive credit amount in Business Central to offset the original invoice, and finally allow the daily synchronization to update the platform payment status. While this process requires manual intervention, it ensures accurate financial record-keeping and proper customer refund processing.

Related Content

• Payments on the Platform
• Understanding your Invoice