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Experienced User
Little_crystal
Posts: 44
Registered: ‎22-02-2011
Australia
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Record Credit card charges in "invoice"

Hi EVERYONE, 

 

Could somebody coiuld tell me hwo to recoed credit card charge in an invoice?

 

If the total sales is $2100, credit card charge is $21

 

So I directly charged $2121 from customer account.

 

In fact, the bank should be $21, but the bank would charge me $21.21, so, do I record $21 as bank fee ?  or $21.21 instead ?

 

Maybe I am stating not quite clear, anythiing unclear, please ask me.

 

Thank you !

 

:smileyhappy:

 

Crystal

 

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Super Partner
David_Cree
Posts: 615
Registered: ‎11-01-2007
Australia
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Re: Record Credit card charges in "invoice"

Hello Crystal,

 

If you are using an ITEM invoice format then create a new item some think like CCS   Credit Card Surcharge as I Sell with a zero value. allocate it to an Income a/c for Card surcharges. Tax with GST.

Add this line your the invoice with the value.

 

If you are doing a SERVICE invoice then just add another line on the invoice.

 

Re the $21 versus the bank fee $21.21 then obviously you need to up rhe surcharge to cover it plus a bit for the handling fee. i would suggest 1.5% not 1%. If they do not want to pay by card then there are other options available. I have clients that charge 3% for Visa/ MCard & 3.5 for AMEX.

 

cheers

David

DAVID CREE
MY Business Locum MBA, LCGI, MICB
MYOB Certified Consultant
Ph: 0418 622 163 Fax: 08 8362 2163
mybl@senet.com.au
St Peters South Australia
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Ultimate Partner
Tazinx
Posts: 1,666
Registered: ‎28-01-2011
Australia
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Re: Record Credit card charges in "invoice"

Hi Crystal,

 

I reckon this is one of those things that needs to be included upfront in the terms of sale say in a quote (see attachment 1).

 

In reality, two different monetary transactions have occurred, one purchased based (spend money) and the other sales based (receive payment):-

  1. The business has issued a purchase order for a payment service from an authorised institution in return for it providing money supply based on a customer credit card (COS)
  2. The business in return has passed the cost of that payment service through an additional line on the sales invoice to its customer (Income)

Up to you to decide on how to code the accounts, for example:-

Income Account:                                                                                 Cost of Sales (COS)

4-2800   Income Credit Card Charges    GST  Tax Code                     5-2800 COS Credit Card Charges    GST Tax Code

 

Please refer to attachment 2 for the additional line required to the invoice and attachment 3 for the spend money example

 

Regards,

 

Taz

Best Regards

Tony Lane - Penguin - Tasmania
TERMS.jpg
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