Auto Bookkeeping for NetSuite

Auto Bookkeeping automatically helps you reconcile Resolve payouts with your NetSuite accounting system. This is an optional feature you can enable to save time and avoid having to download our payouts data and manually create records within NetSuite. 

Payouts data will be recorded into your NetSuite as soon as the bank automatically confirms that the transaction was successful (2 business days).

Below is a summary of the record types that are synchronized with the payout sync enabled.

How do I turn on Auto Bookkeeping?

A basic example

Let's say you have a customer who is approved with an advance rate of 75%. You then want to send an invoice to them for $100 and receive an advance for this invoice. 

Chronology

• Day 1:
  • You send the invoice for $100.
    • Resolve issues an advance for $75 ("advance" payout transaction)
    • Resolve charges a fee of $1 ("advance" fee payout transaction) 
  • The customer pays this invoice in full e.g. $100 (usually they pay closer to the terms due date)
    • Resolve pays out the remaining $25 on this invoice ("payment" payout transaction)
  • Resolve bundles these transactions into a "payout" with a net amount of $99 and executes this payout via ACH
• Day 3:
  • You should receive the net payout of $99 within the bank account linked to Resolve
• Day 4
  • Resolve marks the payout as paid.
  • For the net payout and for each transaction within the payout Resolve attempts to create relevant transactions. See diagram and table below.
    • Payout
      • Journal Entry of $99 for the net payout
        • Debit bank account $99
        • Credit a user defined clearing account $99
      • Payment of $75 against the invoice for the advance payout transaction
        • Debits clearing account $75
        • Credits accounts receivable $75
      • Payment of $25 against the invoice for the payment payout transaction
        
        • Debits clearing account $25
        • Credits accounts receivable $25
      • Journal Entry of $1 for the advance fee
        • Debits fee account $1
        • Credits Clearing account $1
  • You can match the Journal entry of $99 between the bank account and the clearing account with the $99 that appears within your bank statement.

You can view a more complex example for payout journal entries in the second tab on this sheet.

Below is a diagram outlining the payout and the associated records we would create within NetSuite on Day 4 when the payout is mark paid. Please note: Resolve first moves everything into the clearing account and then from the clearing account into the relevant asset and expense accounts.

What is the general ledger impact?

This spreadsheet outlines the general ledger impact in this example - General ledger impact 

What will this look like in NetSuite?

Below is a series of screenshots from Resolve and NetSuite for the relevant records involved in this example.

Resolve invoice

Resolve payout

NetSuite invoice

NetSuite payment

NetSuite chart of accounts - Bank account

NetSuite chart of accounts - Resolve clearing account

NetSuite chart of accounts - Accounts receivable

NetSuite chart of accounts - Resolve fees account

NetSuite - Bank statement reconciliation (bank match)

FAQs

What happens if I turn auto bookkeeping off?

If you change your mind you can simply turn this setting off, at which point we stop writing records to your NetSuite account. The 1 way sync will still occur syncing customers and invoices. If you don't want anything to sync, you can of course also disconnect NetSuite.

Will this write old payout data to NetSuite?

No. We only start writing data when this is turned on and configured. We won't write data from payouts previously marked paid.

Why do you use a clearing account?

The main reason we use a clearing account is to isolate Resolve related transactions. Each payout can consist of many transactions. It simplifies things to have a single journal entry between the bank account and the clearing account so that:

1. The Journal entries from the bank account are 1:1 with Resolve payouts.
2. It's easier to match the line item on your bank statement with the single Journal entry.
3. The bank account register is cleaner

Credit notes and merchant payments will be recorded as journal entries between accounts receivable and the clearing account. 

How do I send Due Upon Receipt invoices?

The process for uploading Due Upon Receipt invoices is the same as for all invoices with your integration — add them to NetSuite and sync to Resolve, and then send them from within Resolve.

Limitations

There are currently some limitations with the payout sync namely. 

1. We currently don't support different credit and debit bank accounts. e.g. if you have 2 bank accounts linked - one for credits and one for debits. 
2. We currently only support a single clearing account and a single expense account. 
3. We don't support not writing specific transactions. e.g. if you don't want us to create a journal entry for the monthly subscription fee this can't be turned off. 
4. We create these records when we recognize the payout as paid. This is subtly different from when you will actually receive the money. We have a single business day buffer to cover cases where the payout might fail to credit / debit. This could happen due to a variety of reasons e.g. NSF's - "Non-sufficient funds", bank accounts closing / changing etc.
5. If you have required fields within your payment or journal entry creation, the sync will fail. For example: if "department" is required. We don't support pushing custom data, so these requirements would need to be disabled within NetSuite.
6. Sometimes merchants have default payment methods within NetSuite. If these are enabled when we sync payments, these will be created with these default payment methods. This can lead to automatically charging customers, so we encourage removing these defaults. We currently don't support pushing a payment method as part of the reconciliation process.