CREDIT CARD FEES DEDUCTED FROM RECEIPT

Question

Hello - recently credit card merchant has started deducting their fees from the customer receipt 
 &pound;1000 customer invoice paid by card - &pound;975 received into bank - &pound;25 fee invoiced by merchant - then also monthly charges invoiced by merchant and deducted from next receipt - so &pound;1000 customer invoice - &pound;935 received into bank 
 have posted &pound;1000 bank receipt against customer invoice so is fully paid off 
 have posted purchase invoices to merchants account for fees 
 how do i reconcile money in bank account not correct and how do i allocate payment to merchant invoices

Alison Harman · Answer

We have something similar but not with a credit card merchant. 
 Using your example we would post the full &pound;1000.00 receipt against the customer invoice. 
 Then raise a supplier payment for &pound;25.00 against the merchant at the same time. This then sits on the supplier account until the invoice is received. 
 Post the invoice to the supplier account and this then can then be matched to the payments using the supplier payment screen. 
 Hope this helps.

Ken Starnes · Answer

Pay your merchant's fees invoices (Bank Supplier Payment) the same day as you receive the money; that way the two items on the bank rec will equate to the actual money received. But that would mean you'd have to hang on to the Merchant receipt until the charges were processed. 
 There may be a better way of doing this but we dont take card payments normally so avoid the hassle.

Sage 50 Accounts

CREDIT CARD FEES DEDUCTED FROM RECEIPT

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING