Hi,
I have an online merchant account and as they handle payments, I have created a bank account for them in Quickfile. What I am struggling with is how to input card handling fees which are deducted as a percentage automatically when a transaction is made. At the moment I create a purchase for the full amount and then tag it to a payment in the merchant bank account. I then create a manual entry each month for all the card processing fees. This process works but it means that the account does not tally with the online merchant account. Is there a better way of doing this ? Can I create a similar automatic deduction each time I process the payment based on percentage or is there a better way ?
The method you’ve described should work fine, albeit you may end up with a slight difference.
You could tag it for each individual transaction, but depending on the volume of transactions with this merchant, it could quickly add to your workload.
For example, if you took £100.00 from a customer and was charged £5.00 by the processing merchant, you would have 3 individual transactions in the merchant bank account:
£100.00 in, tagged to the client’s invoice
£5.00 out, tagged to the merchant’s invoice or as a pre-payment (if you wish to account for it at the end of the month as one invoice)
£95.00 out, tagged as a transfer to the depositing bank account (e.g. your current account).
There isn’t an automated way of accounting for this unfortunately.