JE-110 Jul 2026Manualposted
Record the week's charges.
| Account | Dimensions | Debit | Credit |
|---|---|---|---|
| 1050 Stripe clearing | 50,000 US Dollar | ||
| 4000 Revenue | 50,000 US Dollar | ||
| Totals | 50,000 US Dollar | 50,000 US Dollar | |
Balanced.
Journal entry for a Stripe payout
Book charges gross: debit Stripe clearing and credit Revenue for every charge, debit Sales returns and allowances and credit Stripe clearing for refunds. When the payout lands, debit Cash for the payout and Merchant fees for the fees, and credit Stripe clearing — which should then be zero.
- Charges
- $50,000
- Refunds and fees
- $2,680
- Payout to bank
- $47,320
- Entity
- Illustrative company
- Basis
- Accrual
- Currency
- USD
- Period
- July 2026
The worked example
In a week of July a company takes $50,000 of card charges through Stripe, refunds $1,200 and is charged $1,480 in processing fees. Stripe pays out the net $47,320.
Transaction · July 10, 2026
Transaction · July 10, 2026
JE-210 Jul 2026Manualposted
Record the week's refunds.
Journal entry JE-2, 2 lines Account Dimensions Debit Credit 4100 Sales returns and allowances 1,200 US Dollar 1050 Stripe clearing 1,200 US Dollar Totals 1,200 US Dollar 1,200 US Dollar Balanced.
Transaction · July 13, 2026
JE-313 Jul 2026Manualposted
Payout lands in the bank, net of fees.
Journal entry JE-3, 3 lines Account Dimensions Debit Credit 1000 Cash 47,320 US Dollar 6500 Merchant fees 1,480 US Dollar 1050 Stripe clearing 48,800 US Dollar Totals 48,800 US Dollar 48,800 US Dollar Balanced.
What the entries do to the accounts
Every entry above posted to the ledger, starting from zero balances: the net debit or credit each account is left with. Debits equal credits, so the books still balance.
| Account | Debit | Credit |
|---|---|---|
| 1000 Cash | 47,320 US Dollar | |
| 4000 Revenue | 50,000 US Dollar | |
| 4100 Sales returns and allowances | 1,200 US Dollar | |
| 6500 Merchant fees | 1,480 US Dollar | |
| Totals | 50,000 US Dollar | 50,000 US Dollar |
One account nets to zero across the entries and is not shown.
Why it is booked this way
A payout is a net figure: charges less refunds less fees. Booking it as one deposit loses all three. Booking the components through a clearing account keeps revenue gross, puts the fee in expense and leaves an account that must return to zero.
That zero is the reconciliation. If the clearing account holds a balance after the payout, a charge, refund, dispute or fee is missing from the books.
Common mistakes
- Recording the bank deposit as revenue, so revenue is net of fees and refunds and never ties to Stripe's reports.
- Leaving a balance in the clearing account that nobody reconciles to Stripe's balance.
Questions
- Should I book Stripe payouts as revenue?
- No. Revenue is what the customer paid; the processor's fee is an expense of collecting it. Booking the net payout as revenue understates revenue and hides the fee line entirely.
- What is a Stripe clearing account?
- A clearing account holds money in transit between the processor and the bank. Charges go in, payouts and fees go out; a balance left at month-end is either money genuinely in transit or something not yet booked.
Terms on this page
Work with this entry
The tool that computes the schedule, the concept behind it, the entries that come next and the components that render them.
- Two-list matcherBank against ledger: exact, then reference, then a date window, then one-to-many — and what is left on both sides. Put your own figures in and get the schedule behind this entry.Tool
- Stripe, explained for foundersStripe runs card payments and subscriptions. A payout nets charges against fees and refunds; book it as one deposit and revenue and costs come out wrong.Doc
- Journal entry for a customer refundTo refund a customer for an invoice already paid, issue a credit note — debit Sales returns and allowances, credit Accounts receivable — then pay the refund: debit Accounts receivable, credit Cash.Entry
- Journal entry for sales tax collectedWhen a taxable sale is made, debit Cash or Accounts receivable for the total charged, credit Revenue for the price and credit Sales tax payable for the tax. When the return is filed, debit Sales tax payable and credit Cash.Entry
- Journal entry for a sale on accountFor a sale on credit, debit Accounts receivable and credit Revenue for the price; under a perpetual inventory system also debit Cost of goods sold and credit Inventory for what the goods cost. When the customer pays, debit Cash and credit Accounts receivable.Entry
- PayoutScheduleUpcoming payouts calendar.Component
- ReconciliationViewTwo-pane matcher. The match animation.Component
An illustrative company, not anyone’s real books. Every figure on this page is computed from the inputs in the example and posted by the same functions as the journal entry balancer. General information for US companies under US GAAP, not accounting or tax advice.