How do I deal with underpayments?
From Catalyst
Contents
Summary
You may find a payment reaches your account but has had a bank charge or handling fee applied. This article explains how to post the charges to the Profit & Loss.
More Information
Depending on the circumstances you will account for the charges through either Sales Ledger Receipts or Nominal Ledger Journals.
Sales Ledger Receipts
Follow the instructions in the Posting Payments Received article to allocate the amount of money you have received from the customer as normal.
You will then be left with a balance against an invoice or range of invoices.
- Use the <F> key to pay the balance of the remaining invoices to account for the charges made (or enter the amount you have been charged against the relevant invoice or invoices).
- When you reach the [Payment] tab, enter a suitable comment, e.g. 'CHARGES'.
- Change the "Payment Centre" to be the centre to which to allocate the charges.
- To search for a centre, press <Ctrl+F1>.
- Enter a search word in "Filter on" and click [Search].
- Select the appropriate centre from the list e.g. '50291 - Bank Charges' and click [Choose].
- Click [Done] and [Accept].
Nominal Ledger Journal Entries
You may find charges have been applied to certain transactions, e.g. a credit card fee. Depending on how the charges have been applied, you will need to journal the fees between Nominal Codes.
- Deducted from credit card payments before your account is credited:
- Carry out your banking journal as normal to journal your Credit Card (Z902) takings to Debit your bank account, less the amount you have been charged.
- Journal the amount you have been charged to Credit your Credit Card centre and Debit the Bank Charges centre on the Profit & Loss.
- Deducted from your bank account:
- Journal the amount you have been charged to Credit your Bank Account and Debit the Bank Charges centre on the Profit & Loss.
See also
- Posting payments received
- The banking journal
- How should I deal with takings?
- How do I create a nominal code?
