One of my clients takes payment from some of his customers via Credit card, he charges then the normal 3% so he doesn't loose out. Where do I post the 3% too?
Will it have to be journalled in? Also I can't find the payments on the bank statement??? I am confused? Do I set up the the Credit card company as a bank account? Also if thats the case when do they pay it into his account? Or is it upto him to transfer the money from one account to the other on line?
Am totally confused! (not difficult I know)!
cheers,
-- Edited by Amanda on Friday 29th of June 2012 10:18:13 PM
I have edited my original post, yes I thought of listing it as other income, setting a nominal code just for that only, which kind of makes sense. But where are the payments going?? I can not see them for the life of me on the bank statement? Do they put them all together and allocate them as one payment into the bank account.
The fee he gets charged is correct and taken from the bank account correctly. I list that as an expense under the bank charges section but set up a separate nom code for it.
Its friday night and need a glass of wine!
thanks
-- Edited by Amanda on Friday 29th of June 2012 10:24:26 PM
Kris - I have another client who uses Streamline and when the payments are taken, its alot of them as its retail, the payments received show in the bank account, although not always separately sometimes lumped together.
Me thinking a fresh pair of eyes in the morning!
-- Edited by Amanda on Friday 29th of June 2012 10:26:47 PM
I don't know if I've understood right, but would you not just stick the 3% in as other income and then when the bill for the credit card processing comes in enter is as a cost of sale?
Is it one of these chip and pin things? I have a client who uses them and the company transfer the money into his account in bulk weekly less their fee. So I deal with it much like factoring.
I hate Streamline. It takes me forever to reconcile their statements.
What I normally do is set streamline up as a bank account and a supplier, take the total of all transactions and DR their bank account and CR sales.
Their charges are posted to their supplier account (mainly because they are a mixed vatable supply, and the DD payments use a different reference, so it is easier to see on the bank statement)
Then when I reconcile the bank current a/c I do a transfer from Streamline to the bank, for each transfer on the current a/c (the last four digits on the streamline reference are the transfer date, so 1806 is the 18th June).
Unfortunately they have a tendency to group transfers (and refunds) on their own statement, and you need to try and see which ones weren't transfered until after the statement date.
Some card companies net the invoice for the fees off one of the credits to the bank so you wouldn't see it as a payment on the bank statement.
Thats how banks work so its only natural to handle such payments in the same manner.
The term clearing bank actually comes from all of the banks having ledgers as to what money they owe to and is owed by each of the other banks at the end of each business day.
As they are such a trusting bunch they don't give the whole amount but rather net it off to ensure that they get all (or most) of the money owed to them by other banks.
So basically, at the end of each day the ledgers are cleared which is where the term clearing bank comes from.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
