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How Kolleno Reconciles Bank Fees in NetSuite

Auto NetSuite bank fee reconciliation: Kolleno posts journal entries, no manual work.

Kolleno Support avatar
Written by Kolleno Support
Updated over a month ago

Overview

When banks charge processing fees on customer payments, Kolleno automatically creates the necessary NetSuite journal entries to properly account for these fees, eliminating manual reconciliation work.

This solution is based on NetSuite SuiteAnswer ID 23089.

The Problem

Customer pays $100 invoice → Bank deposits $90 (after $10 fee) → Your books need to reflect both the full payment and the bank charge.

Prerequisites

Configure your General Ledger Mapping with:

  • Bank Ledger Category: Your bank asset account

    • in Kolleno: Bank Ledger

  • Accounts Receivable Category: Your bank asset account

    • in Kolleno: Accounts Receivable

  • Expense Category: Your bank fees expense account

    • in Kolleno: Processing Fees

Automatic Process (With Kolleno)

When Kolleno detects a bank fee, it creates a NetSuite journal entry:

Step A – Bank Fee Journal Entry

Journal Entry

  • Debit: Expense Account – $10.00 (linked to customer)

  • Credit: Accounts Receivable Account – $10.00 (linked to customer)

Step B – Customer Payment Application

Customer Payment

  • Debit: Bank Ledger Account – $90.00 (actual deposit applied to invoices)

  • Debit: Expense Account – $10.00 (covers the bank fee)

  • Credit: Accounts Receivable – $100 (clears the invoice)

This balances (debits = credits) and shows the real flow: customer’s invoice cleared for $100, with $90 hitting cash and $10 hitting fees.

Manual NetSuite Process (Without Kolleno)

Step A- Create Journal Entry

  1. Navigate to Transactions > Financial > Make Journal Entries

  2. Entry should be:

    • Debit Bank Service Charge (Expense account) 10.00; select Customer linked to this Journal in Name column.

    • Credit Accounts Receivable 10.00; select Customer linked to this Journal in Name column

Step B - Accept Customer Payment

  1. Navigate to Transactions > Customers > Accept Customer Payments

  2. Mark the Apply checkbox for the Invoice(s)/Journal(s) to be paid under the Apply tab > Invoices subtab

  3. Mark the Journal Entry with the debited Expense account under Apply tab > Credits sub tab

  4. Save the Payment

  5. GL Impact will be:

    • Debit Undeposited Funds / Bank Account 90.00

    • Credit Accounts Receivable 90.00

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