Reconcile Authorize.net settlement transactions

The "Payout to Reconciliation Automation for NetSuite" integration app automates the cash reconciliation process. If you manually reconcile your transactions by creating deposit records in NetSuite and then moving funds around, the "Payout to Reconciliation Automation for NetSuite" integration app automates the process for you. This also helps you to track and accurately match the balance in the accounting systems with the balance in Authorize.net. The integration app reports any unapplied transactions so you can raise a dispute with Authorize.net.

With the "Payout to Reconciliation Automation for NetSuite" integration app, you can:

• Automatically download the Authorize.net payouts.
• Process multiple payout reports in one run.
• Apply the undeposited transactions and move them to the bank account.
• Report settlement transactions that are causing discrepancies and unsettled amounts. 
• Delay the reconciling process for a certain window with the Lag to bring payout-related records setting.

Understand how the flows work

The app comprises two flows:

1. Authorize.net settled batches to NetSuite payout custom records
2. Authorize.net transactions to NetSuite deposits 

Flow 1: Create payout custom records in NetSuite

The Authorize.net settled batches to NetSuite payout custom records flow gets the settled batches and payouts transactions list from Authorize.net. The flow then creates the “Celigo Payout” custom record for an Authorize.net payout in NetSuite. This is a scheduled flow. All the deposits for the payout will be linked to the custom record. 

Flow 2: Create deposits in NetSuite

The Authorize.net transactions to NetSuite deposits flow syncs the settlement transactions (payment and refund) of a payout and creates the NetSuite deposit records. This flow deposits funds into a NetSuite bank account by matching Authorize.net transactions with NetSuite sales transactions. The auto-triggered flow reports variances through custom records in NetSuite.

The flow creates bank deposits in NetSuite by processing transactions as below. For each Authorize.net payout transaction whose,

• If the settlement transaction is “payment,” the flow looks for a cash sale or customer deposit that matches with Authorize.net transaction/source ID. 
• If the settlement transaction is “refund,” the flow looks for a cash refund or customer refund that matches the Authorize.net transaction/source ID.

While processing the transactions, If duplicate transaction records are available with matching criteria, the first available match is considered.

Note: The integration app does not sync manual Authorize.net payouts.

NetSuite limitation: A deposit is created in NetSuite with a maximum of 2000 Authorize.net transactions. If the number of transactions in the Authorize.net payout record is more than 2000, multiple deposits are created in NetSuite.
Example: If an Authorize.net payout record has 10500 transactions, six deposits are created in NetSuite, five deposits with 2000 transactions, and a sixth deposit with 500 transactions.

A custom record “Celigo Payout Variance Transaction” is created in NetSuite for any variance amounts reported for each transaction and is linked to the NetSuite deposit. You can select an account to track your variances separately in the NetSuite account to track variance setting. A variance transaction is created in the following scenarios:

• If the NetSuite transaction amount value does not match the Authorize.net  transaction value, a variance transaction with the type “Amount Mismatch” is created in NetSuite. 
• If no transaction is found, a variance transaction with the type “Missing Transaction” is created in NetSuite. 

For more information, see Understand the payout variance transactions.

Understand the flow schedule

The scheduled flow fetches the settled batches from Authorize.net and creates Payout Custom records and Deposits in NetSuite as follows:

Understand the Authorize.net transaction detail record

• On the Transaction Search Results page, you can find the complete list of the financial transaction activity for a given day.
• You can find the consolidated Settlement Amount for all the settled successfully transactions for a given day.
• You can find the transaction ID, invoice number, transaction status, customer, payment amount, and settlement details.

The Authorize.net transaction record provides a detailed breakdown of account activity. The settlement period varies in different countries. 

• On the Transaction Detail page, you can find the details related to a single transaction that is settled successfully.
• You can find the transaction ID, transaction status, and batch ID details that are synced to the NetSuite deposit record.
• Whenever a financial transaction happens directly in Authorize.net or any third-party application that is integrated with the Authorize.net payment gateway, all the transactions, either payment or refund, are reflected in Transactions.

Install the Authorize.net - NetSuite app

To install the "Payout to Reconciliation Automation for NetSuite" integration app and set up a connection with your Authorize.net account, see Install the "Payout to Reconciliation Automation for NetSuite" integration app.

Before you set up the flow

It is recommended to update the Payout to Reconciliation SuiteApp in NetSuite before you configure and run the flow.

Configure Authorize.net settings and run the flow

Note: (Optional) Before you run the flow, select a custom date which is the start date and the current date will be the end date to get the historical payouts. From the next flow run, the flow syncs the data in the “delta flow” format.

1. In your integrator.io account, click Payout to Reconciliation.
   

   Note: Make sure to select the appropriate Authorize.net account in the Payout to Reconciliation drop-down list at the top-right.

2. Go to Settings.
   
   • In the Netsuite bank deposit account setting, choose the NetSuite account to which the transaction amounts sent from Authorize.net will be deposited.
   • In the Netsuite account to track variance settings, choose a NetSuite account to track your variances. A variance is reported for an amount mismatch or when a matching transaction is not found in NetSuite. 

   • In the Authorize.net field to identify settlement transactions setting, enter the Authorize.net field name to identify the settlement transactions in NetSuite for reconciliation. The field name must be provided in the exact format mentioned in the Authorize.net API response. If you leave the field name empty or provide a field name in a format not match the exact format mentioned in the Authorize.net API response, the settlement transactions are identified using the invoice number (by default).

   • In the Duration to reconcile transactions setting, enter the number of days prior to the current date to reconcile transactions in NetSuite.

     Example:  If the current date is January 30th and you want to reconcile transactions since January 1st, enter 30 in the setting.
     If you leave it empty, all available transactions are retrieved for reconciliation.

     Limitation: This setting only accepts natural numbers. If you enter values such as “3.5”, “-10”, or “ten”, you will receive an invalid error.

   • In the Lag to reconcile payouts setting, enter the number of days to ignore transactions between the previous flow run date and the present date. This setting helps you to reduce any missing transactions.
     

     Example: If you provide a lag of 4, assuming your previous flow run date is Nov 5th and the current date is Nov 10th, the flow includes all transactions from Nov 1st to Nov 6th.

3. Click Save.
4. Go to Flows.
5. Enable and run the Authorize.net settled batches to NetSuite payout custom records flow. The Authorize.net transactions to NetSuite deposits flow is an auto-triggered flow.

Understand the NetSuite custom payout and deposit records

After you run the Authorize.net settled batches to NetSuite payout custom records and  Authorize.net transactions to NetSuite deposits flows,

• For each Authorize.net payout, the Authorize.net settled batches to NetSuite payout custom records flow gets the Authorize.net settled batches. The flow then creates the “Celigo Payout” custom record per payout in NetSuite. Before a NetSuite deposit is created, each underlying transaction (charges, refunds, and disputes) goes through a validation process. 
• The deposit is 'linked' to every charge or refund contained within that payout. This moves cash from the "Undeposited Funds" account to the bank account specified on the deposit. The status of the transaction is changed from “undeposited” to “deposited.”
• Authorize.net fees and fee refunds are recorded as "Cash Back" or "Other Deposit" line items on the NetSuite deposit based on the accumulated amount. 
• Any dispute (chargeback) fees or dispute reversals are represented as "Cash Back" line items.

Limitation: From NetSuite, a maximum of 10000 lines can be linked to a deposit. The edit operation on the deposit record does not work if there are more than 10000+ unsettled transactions.

Celigo source account details

For every Authorize.net account that you configure in the Integration App, a list is added on the “Celigo source account details” page. Each record is added as a separate line with the connection name and store ID. The Integration App ID is treated as the store ID for now.

Celigo Payout custom record

In this record, you’ll find:

• The summary record for each payout report.
• Name
• Payout ID
• Amount
• Payout Date
• Currency
• Memo
• In the Deposits tab, the appropriate deposit record is attached.

NetSuite deposit record

At the body level, you can find:

• Account
• Amount details
• The “Memo” field shows the payout ID. You can configure the memo field as per your business needs.
• Deposit number.

NetSuite deposit record sub-tabs

You can find the following sub-tabs:

• In the Payments sub-tab, you can find all the corresponding transactions such as cash sales, cash refunds, customer deposits, and customer refunds. 
• In the Other Deposits and Cash Back sub-tabs, you can find the refund adjustments, variances, and fees. The amounts are grouped by the transaction type and are displayed as individual lines.
  • Any amount that has to be added to the Deposit is tracked in the “Other Deposits” tab.
  • Any amount that is deducted from the Deposit is tracked in the “Cash Back” tab. 

Payout tab

In this tab, you can find the Source Account Name and Source Payout that is listed on the “Celigo source account details” page. You can also find the complete list of variance transactions for the particular deposit record.

Celigo payout variance transaction

A variance transaction can occur when there's a mismatch between the order totals in Authorize.net and NetSuite. It could also be because the transactions were not found in NetSuite. In NetSuite, all the order and transaction details that cause variance are reported in the “Payout” tab.

In this record, you can find:

• Type: You can find the transaction event code that will help to identify which transaction type there was a variance transaction created. 
• Variance Type: “Missing Transaction” or “Amount Mismatch”
• NetSuite Deposit: You can find the deposit record linked.
• Variance Amount
  • In the “Original Amounts” tab, you can find the below field values only if there is an “amount mismatch” scenario:
    • Transaction Amount
    • Transaction Net
    • Transaction Fee
  • In the “IDs” tab, you can find the “Transaction ID.” This is the original Authorize.net transaction ID.

For more information about Authorize.net variance transactions, see Understand the payout variance transactions.