I have several customers set up on a monthly direct debit that is automatically linked via gocardless and set up on monthly reoccurring invoices.
My question is:
If the direct debit is for £66.99 and that is the amount that is charged to the customer via invoice. Gocardless and QuickFile have been set up to automatically ‘pay’ the invoice without me having to manually do it. I’m not sure how this will work though, due to Gocardless deducting their fees, as the amounts won’t end up matching up. How does this work? Or if I have to end up doing this manually, where do I offset/reconcile the Gocardless fees?
How do I reconcile/log the fees, against what exactly?
Also, Even though the incoming merchant payment from gocardless might be for example £66.99, less the fees, leaving a balance of £59, gocardless would still recognise to mark the invoice/s as paid?
You would have a holding account set up in QuickFile, which would act as the account that you have set up with GoCardless.
So effectively, you have 3 transactions for every 1:
The full invoice amount coming into the GoCardless Holding Account, tagged to the invoice
The GoCardless fee, tagged to a purchase invoice or nominal code (depending on how you handle it)
The balance tagged as a transfer to your current account
To give you a real example here, let’s say we charge a client £75.00. This would have a £0.75 charge from GoCardless, and the balance of £74.25 would be paid into our bank account. This would look like this:
Of course, the transfer out to your current account may consist of more than 1 deposit, and likewise, you can bulk tag the GoCardless fees (e.g. at month end) rather than individually.
The guide @QFBeth linked to above outlines the same process.
GoCardless will send you an separate statement of the charges for the previous month during the first couple of days of the next month.
I tag the credits in the bank account as transfers from the holding account.
I have set GoCardless up as a supplier and just create a purchase paid from the holding account once a month, and everything balances.
