Processor Fee Reconciliation

Some processors deduct fees before making the deposit into a user’s account. This can be tricky when trying to reconcile a deposit from Elite if the fees have not also been deducted from the credit card deposit for the day. To help ease the process, special General Ledger accounts can be populated to account for money taken vs. deposits received after fees.

Setup

Getting there: Configuration gear> App Configurations> Accounting Configurations> Account Numbers.

The general ledger fields that need to be populated to facilitate the breakout of credit card fees and credit card deposits are located on the Account Numbers screen. 

If no account numbers are populated in the Processor Transit and Processor Expense fields, the general ledger entries will continue to generate as they always have, with the credit card deposit being the full amount of cards taken for the period in which the close happens.

End of Day

When the end of day occurs and the credit cards are reconciled, a call will be made to the processor.  The processor will return both the credit cards taken for the day and the amount that is being deposited for the days minus the payment fees.

The entries will happen as follows when the g/l fields outlined above are populated:

Example:

$100 credit card payment, 8% credit card fee

• GL impact when payment is taken

  • Debit Processor Transit = $100

  • Credit Suspense or AR = $100
     

• GL impact when payment from Stripe is deposited in the bank

  • Bank deposit for the payment received from Stripe

    • Debit Bank cash = $92

    • Credit Processor Transit = $92
        

  • CC Fee Expense for the netted fee amount

    • Debit Processor Expense = $8

    • Credit Processor Transit = $8

These entries will happen at the end of the day whether you are set on batch, real-time, or transaction-based accounting entries.

Reporting

Elite will continue to report on credit card transactions taken over time. While we will be pulling the deposit amount minus fees, the fee detail itself will come from the processor and is not recorded in Elite.