How do I tag a fee for a non-sterling transaction?
The transaction was in US dollars and the fee was 44p.
Who levied the fee? Is this a PayPal transaction?
Deeply annoying, I had this issue with a regular bank transaction, I marked the Invoice fully paid and then created a new PO for the transaction fee and marked it paid from the bank.
What is happening is that the customer pays the Invoice in full, but the bank deducts itās charges at source so only pays into the bank account the amount remaining.
Invariably this leads to extra Bank Input entries and more admin at our end.
These sorts of scenarios are very common for merchant services such as PayPal, Streamline, GoCardless and tons of others who deduct fees at source. The way you would normally handle this is by creating a separate bank account for the entity deducting the fee, enter the full invoice amount over there and tag (in full) to the invoice. When the net amount comes into your current account youād treat this as a transfer from the merchant bank account, this will leave a small difference on the merchant account relating to the fee deducted, you enter this as āmoney outā and tag it as a supplier payment to ābank chargesā.
In our case the fee was levied by the bank themselves. The fee is a separate transaction in the current account.
Thanks in advance for your help.
In that case you would just tag it to the category bank charges. Click to tag then select āSomething else not on the listā, from here you can post it to any nominal account.
We get this āNon-Sterling Transaction Feeā every time we make a payment outside of the UK with the company card.
At the moment, we havenāt found a way to Project Tag this fee to the particular activity (eg exhibition), because the amount goes straight to a nominal account rather than being linked to a purchase.
It would be useful so we can know the true cost of the particular activity.
Is there a way to do this Project Tagging which we missed?
You could create an invoice for this and add a project tag to the invoice.
The other option would be to create an adjustment on the project. Thereās more information on this here
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Yes, this works!
Thanks