Hello,
I receive payments by DD using Go Cardless and I record these manually. When Go cardless sends their monthly invoice, I manually record the invoice in purchases with the total fees and the purchase invoice amount is then paid from Go Cardless resulting with a zero balance in Go cardless at that point (so far so good).
However, when a client payment fails, recording the invoice as a whole leaves me with a negative balance in Go Cardless.
How do I record this?
Hi @Janta
Normally, I believe GoCardless would deduct the fee from any successful payments.
What I would imagine would happen is if as of the end of February you had a negative balance (due to an bounced direct debit, for example), then this would be deducted from the next successful payment received.
As long as everything is recorded (the invoice payments, the fees invoice and their payment from the merchant account, and the deposits to your current account), it should balance out in time. If that’s not happening, I would double check your entries to be sure nothing has been missed.
Hello Matthew,
ok, so I am new to this and definitely not a skilled accountant, so if I can explain myself
what I am doing now is say receiving a payment against a £10 invoice. That gets recorded as received into GC.
Then the transfer between GC and the bank takes place, say £9 (-£1 transaction fee) leaving me with +£1 in GC
At the end of the month, GC issues their fees invoice for £1. I record this as a purchase and that gets paid from GC, leaving a zero balance.
But when a payment fails, I am not entirely sure how to record it soon as I have not received any payment into GC. All I have is an extra amount leaving when another client pays if that makes sense.
So I am obviously not doing something right and I am not quite sure how to record it.
Hi @Janta
Apologies for the delayed reply.
Your process sounds correct so far, but it’s this bit that’s causing the sticking point -
Keeping the figures simple, if GoCardiess charges you £0.50 for the failed payment, on top of the £1.00 for the successful payment (if it happens), your total fees would be £1.50. This would be indicated on the GoCardless invoice, and paid from the holding account as normal.
But if the payment never happens and you’re only charged the £1.50 and no money is ever collected from the client, because it failed, that £1.50 is still paid from somewhere. You would need to check your GoCardless invoice to see where this is coming from. It could be taken from a future payout, or they may collect it by direct debit or somewhere manually.
If you can find that bit out, we can help record it in QuickFile.
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