Accounting for income from payment service providers

I’m trying to follow the help guide “Accounting for income from payment service providers”. I’m a little confused with step 2. The picture shows that once the invoice has been paid the tag is still red. When I follow this step the tag turns green which means I can’t follow the other steps. I’m getting really confused with this and hope someone can help me.
Thank you and kind regards,

That looks like a mistake in the screenshot to me - I follow essentially the same steps every day to log card payments in my shop and “step 2” should result in green (tagged) transactions in the merchant account rather than red ones.

Apologies, that is a mistake. Those items listed in Step 2 should appear tagged.

I’ve gone in and corrected that on the guide, you may need to refresh a couple of times before you see the update.

Thank you for your help. I have 1 more question regarding a lump sum paid into the bank for multiple invoices. I’ve read the forums and know I can’t link multiple invoices from different customers to 1 amount in my bank but don’t understand why this feature isn’t available as it would make life a lot less complicated. I’ve even messaged Sage to see if they do it and they don’t. Could you explain (in simple terms) why this can’t be added to Quickfile.
Thank you.

When you’re deing with a payment provider you don’t have “one payment to the bank for several invoices”. You account for the gross total of each invoice separately as a payment into the merchant account, and the money you receive from the provider (net of their fees) as a bank transfer. For accounting purposes the invoice is considered “paid” at the point when the customer pays the payment provider, not when the provider pays you.

Most accounting systems limit single payments to single clients, typically what you do is use a bank account for this type of abstraction. I.e. send the lump sum over to another bank account and split it up and tag there.

This is also how merchant payments should be processed as even though you are paid a lump sum for multiple invoices, you need to be able to mark invoices as paid when the card transactions clear, not several days later when the payment processor sends you the NET amount.

Thank you :smile:
I think I just need to try it and then I’ll understand better but thank you for the replies.
Kind regards,

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