Linking on-chain transactions with invoices in your ERP system
Last updated
Last updated
TL;DR: Loop provides you with all the pertinent metadata: the invoice #, transaction hashes, due date, paid date, and other metadata to help with matching the payment to the open AR.
Loop natively solves the transaction metadata problem and is the missing link to create automation between your subscription/invoice management system (i.e. Stripe, Chargebee, Quickbooks invoicing, etc) and your subledger.
When an invoice is created in a subscription management system, the system has no way of knowing the payment took place on-chain as on-chain transactions only include a few pieces of data: to address, from address, and amount. Thus, often a human needs to ask the payer for the transaction hash to link the invoice to the payment.
With Loop, because we pull in the invoice, translate it into a payment request in our system, and initiate the transfer of funds, we’re able to easily link the invoice to the on-chain payment and will mark a payment as paid in your system once it takes place on-chain. We essentially close the “loop” on the metadata problem.
Here’s an example of how it may work. Loop is flexible enough to work with other variations of this workflow.
Set up a subscription/plan/item in your subscription management system and create a customer under the relevant subscription
The subscription management system generates an invoice based on the terms defined above
Subscription management system talks to ERP and opens a receivable.
Loop pulls the transaction into our system, processes the payment on-chain on the due date and marks the open invoice in the subscription management system as paid.
Your crypto accounting system will recognize the crypto inflow and depending on your rules, it will be categorized as a payment against the receivable.
Loop provides a CSV download and APIs with all the pertinent metadata: the invoice #, transaction hashes, due date, paid date, and other metadata to help with matching the payment to the open AR. Loop is working with several accounting systems to bring this data into the crypto sub-ledger.
The subscription management system then tells your ERP system to mark the AR to paid.
What before was a manual process is now automated as Loop does the work of linking the on-chain transaction to the invoice automatically by interacting with the subscription system directly.
