My card payment provider bulk transfers payments to my bank by date. If I take payments from three different clients in a day I will receive a lump sum payment into the bank to the total value of the payments made e.g. Client 1 pays £20 client 2 pays £30 and client 3 pays £10 I receive one payment (credit) of £60 into my bank. I want to allocate the respective payments to my clients invoices. The default functionality in QF ‘tagging’ only permits one client to be associated with the payment, is there a way of allocating the payment across multiple clients?
The way to deal with this would be to use a holding account for your card provider. It’s a very common scenario, but one that’s easy to resolve.
These two topics may help:
- Accounting for income from a payment service provider
- Processing split payments to different customers
The top one is the key one, but assuming your provider takes a fee before paying out, in a nutshell you’d have 3 transactions:
- Payment from client (tagged to invoice, from the holding account)
- Payment to service provider (tagged to an invoice, from the holder account)
- Transfer from holding account to current account for the balance paid to you
I hope that helps?
Thank you for your advice, I will work through some examples to get the hang of it.
The other thing is that doing it with a holding account means you correctly recognise the payment as having been received on the day the customer paid by card, rather than the day a few days later when the bank paid you (this can make a difference around the end of a quarter if you’re on cash accounting for VAT - HMRC says you have to use the date the customer paid, even if the bank haven’t paid out to you yet).
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