How to tag GoCardless payments

Hi, I’ve just had my first two payment made via gocardless which is great. However, they take £2 of the actual amount so it doesn’t match up with the invoice. How do I tag these payments please and account for them? Cheers

If you have created Gocardless as separate bank account then you can log payment in full installment from customer invoice say 100 and then create money out transaction of £1 as bank charges, this way you will account for gocardless charges and balance will be correct on accounts

Have a read here, similar question.

Thanks guys. I’m still not clear on what this actually means though…

“you will need to enter an additional debit on your virtual payment service provider account and tag that debit to a supplier invoice covering the related charge.”

In my GoCardless acc I currently have two entries for the full amount of 225.00 each. How do I apply the apply solution to that?

EDIT: Ok, I’ve re-read it a few times and its a little clearer. So I just need to go into the gocardless account, click Input New Transaction and set amount to £2.00. Then tag the main invoice and the £2 to the same invoice?

This is a messier than I thought it was going to be. I was going to push all clients onto DD but if I have to do this for each DD that goes into the account its going to be an admin nightmare.

I may need to re-think using gocardless.

I would just log full installment amount from invoice screen and email receipt to client and log gocard charges payment from main bank screen and not feed in any thing from gocard account.
So if installment is 100 and £1 are gocard charges then net effect would be 99 on bank

do i check the apply from credit checkbox here:

You got it!

It’s really not messy when you know how to do it properly, you definitely don’t need to be posting every single charge separately in the GoCardless account, that would take forever! I have a GoCardless account which has approx 120 DDs a month, at the end of the month I just look at what the balance left on the account (which will equate to the charge for that period) and add one lump transaction to take it to zero, I then tag that as a supplier payment to GoCardless (under bank charges).

Whether it be GoCardless, Worldpay, Stripe etc they all pay you net of fees, so this is a familiar concept in accounting that you’d need to use regardless. I think once you get to grips with it you’ll find it easy.

GoCardless in 3 easy steps

  1. Post all your GoCardless sales GROSS into the GoCardless merchant account.
  2. When you receive a lump payment from GC (usually for a bunch of invoices), tag this as a transfer from the GoCardless merchant account.
  3. At the end of the month the account will be in credit proportionate to the fees you’ve paid to GC, enter a money out transaction to bring the GC account back to zero and tag as a purchase payment to GC under ‘bank charges’.
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Ok, I get it now hooray, its been a long week haha.

Quick question:

When I tag the go cardless charges in the merchant account do i need to create a purchase order?

Its ok I’ve sorted it guys.

I created a supplier called GoCardless charges and tagged it to that.

I found it in one of your other threads.

Thanks for bearing with me

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you can create supplier and then create purchase invoice or create direct payment from gocardless account and tag into bank charges nominal

Excellent, it sounds like you’re on top of this now. It reminds me I need to write a guide about GoCardless reconciliation as this question comes up once every couple of weeks, would be better if we had a clear step-by-step guide with pics to illustrate the process.