Our card processing company deposit the total card payments taken per day into our bank account daily minus their percentage, they then invoice us once a month to show the total they have received from us.
So if we take £150 on card payments they deduct 1.6% and deposit £147.60 into our bank and at the end of the month they will send a statement saying they received £2.40.
My question is how do I enter this on to Solar so it corresponds to our bank statements when they arrive, would I have to create a new account name.
Hi Phillip,
For the scenario you describe, create a new asset account called 'Funds
Held by Card Processor'. Each month record a Money Received for the full
amount your customers have paid by card (eg. £150) with the Deposit Into
Account set to 'Funds Held by Card Processor'. Then record a separate
Money Paid Out transaction for the total amount of the card processing fees
(eg. £2.40) with the Paid From Account set to 'Funds Held by Card
Processor' and allocated to an appropriate expense account. Finally record
a General Transaction from the Funds Held by Card Processor account to the
Cheque Account for the net amount you receive (eg. £147.60)
