Overview
If you’ve recently migrated from Klarna Checkout to Kustom Checkout, this article outlines how your settlements may be temporarily affected during the transition. The guidance below is designed to help finance and accounting teams understand the impact on payouts, debt statements, and reconciliation workflows.
Order processing across platforms
While all new orders will now be processed through Kustom, any captures, returns, disputes, or adjustments related to orders placed before your migration will continue to be managed through Klarna.
This may result in a negative balance on the Klarna platform. If the negative balance persists beyond a certain time period, Klarna may issue a debt statement, which serves as a formal request for repayment.
Automated Netting
To prevent any disturbances in payouts as well as remove manual work, Kustom and Klarna will jointly ensure that any negative balances and/or debt statements on Klarnas platform is netted against sales on the Kustom platform automatically. This will be done in two steps.
Step 1: A hold will be placed on a portion of your account balance—equal to the negative Klarna balance—while the remaining funds will continue to be paid out as usual
Step 2: Funds will be deducted from your account when Klarna issues a debt statement
The relevant references—such as Klarna payment references or Debt Statement references—will appear in the klarna_comment field of each transaction, aiding audit and reconciliation processes.
Note that your settlement report might not be configured to include the klarna_comment field, this can be configured in the Kustom portal.
Important: Debt statements that are settled through this automated netting flow will be clearly marked as “Do not pay” in the Klarna Merchant Portal**.**
If a debt statement is marked “Do not pay”, you should not manually pay the invoice. The balance will be automatically settled via deductions from your Kustom settlement. However, it still needs to be recorded in your accounting system for reconciliation purposes.
The debt statement and the corresponding deduction in your Kustom settlement will appear as separate transactions, and should be booked accordingly to reflect the netting flow.
Reconciliation
To support your finance and accounting operations:
Kustom settlement reports will include mirrored transactions representing any Klarna-originated negative balance and debt statements.
This allows for reconciliation across your financial systems and reporting tools.
Transaction types to be added
Transaction type | Detailed type | Description |
HOLDBACK | UNDER_REVIEW | Indicates a negative net settlement from Klarna. A corresponding transaction will appear in the Kustom settlement report - one per Klarna settlement. The |
RELEASE | UNDER_REVIEW | Indicates a positive net settlement from Klarna or conversion of a negative balance into a Debt Statement. A corresponding transaction will be included in the Kustom settlement report, with the payment reference provided in the |
CHARGE | TRANSFER_FROM_LEGACY_INTEGRATION | Represents the final settlement of a Klarna-issued Debt Statement. The transaction includes a reference to the specific Klarna Debt Statement in the |
FAQ
Q: How will multiple currencies be handled?
A: Negative balances in multiple currencies on the Klarna platform will need to be netted like-for-like on the Kustom platform.