Hi guys i asked this question before (here) i worked through this http://help.quickfile.co.uk/main/1/accounting_for_income_from_payment_service_providers.htm which seemed great but then i had the bank transfer from the PAYLEVEN account and the payment that PAYLEVEN made in to my current account so it looked like i hade more money than i did.
How do i combat that? for now i deleted the transaction that was imported by the bank feed, the payments always get put in to the current account from the PAYLEVEN (Zenpay) device when the funds have cleared less their fees. I’m a bit confused how to do this properly without the jumping through hoops to assign the payment to my customer.
Can I just confirm the following is happening with PAYLEVEN, I’ve not used them myself before so just want to clarify:
- You collect card payments from your customers for each job.
- PAYLEVEN hold the funds in an account for x number of days.
- PAYLEVEN then deposit the total of the funds collected for a given day into your current bank account, minus their fees.
Is this what’s happening?
Thats exactly as it is Although, and i haven’t done that yet, it may pay an entire lump sum at the end of the month accounting for a few jobs, as i said i haven’t taken multiple payments with it yet.
The invoices you’re marking as paid when the client pays via PAYLEVEN should be deposited to the PAYLEVEN merchant account, not the current bank account. When PAYLEVEN transfer funds to your current account you should treat this as a bank transfer from the PAYLEVEN merchant account to your current account.
Hi Glenn, thanks for replying, i followed the steps as you laid them out (or at least i thought i did).
- Created a merchant account PAYLEVEN
- Assigned the customer invoice as paid from merchant account
- Funds got transferred in to current account via PAYLEVEN
- Made a “Money out” from Merchant account to current account for the amount paid in to the current account
- Made a “Money out” from merchant account for the fees
- Merchant account shows zero
- Current account shows already transferred funds AND the “Money out” from the merchant account to the current account
This is where i then have twice the amount of money that should have been added to the account, so i deleted the bank feed for the transfer that PAYLEVEN made in to my current account and left the merchant account transactions that i made in place.
Have a missed a step or something like that?
That sounds exactly right. If you have a bank feed running and your manually initiating the transfer from the merchant account to the current account, then you may end up with two deposits on your current account for the funds transferred from PAYLEVEN. Just delete the untagged one that originates from the bank feed… which it sounds like you’ve done!
Great!, thanks for that, i thought i was missing something or not reading your knowledge base article correctly. Would it be easier to have the clients invoice tagged as a Money out from the merchant account so it shows a deficit then tag the bank feed as transfer to that account? does that make sense or am i way off here?
No it would it need to be “money in”, it’s funds coming into the company from sales invoices. That merchant account then becomes an asset on your company’s balance sheet, which is effectively what it is, even though it’s money deferred by the merchant service provider, it’s still an asset.
Ok, thanks for your help and explanations Glenn.
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