Proposal summary
This proposal is for debiting the merchant fee for shopify & paypal payments.
Requirement
If an order is created from BOTH DTC sites (Tableshop/shopify and crow canyon home/WooCommerce) then the amount should break out the merchant fees so it is easier to match up.
1) Debit merchant fee to “Merchant fees”. Merchant fee is a calculation of the total order including tax and shipping.
a. Shopify payments : 2.6% + $0.30
b. Paypal: 2.9% + $0.03
2) Debit net amount to “Undeposited Funds”.
Our Solution
We can create a Journal entry while an order is made from the shopify sites (Tableshop/shopify and crow canyon home/WooCommerce). To break out the amounts & to add account types other than the bank will be easy in the Journal entries. The shopify order is identified as In8Synch field. The In8Synch field will not be empty if the order is created from the sites.
The journal entry will break out the amount as follows
- Merchant fee Dr. (Expense)
- Undeposited fund Dr. (Bank)
- Accounts Receivable Cr. (AR)
For example, the total amount of the order is $100, then it is coming from sites. So the merchant fee breaks as Merchant fee Dr. (Expense) as $2.9 ((100*2.6/100)+0.30).
The $97.10 (100- (100*2.6/100)+0.30) amount will be debited in the undeposited fund.
Credit ($100) will be added to the AR account.
We will add the gross amount & order# in the GL line memo.
Assumptions
We have to apply both the Shopify amount & Paypal amount if the order is coming from Shopify sites and the payment method is PayPal. For example, for an order total amount is $100, which will be deducted in the merchant fee is $ 6.1 (100*2.6*1/100+.30 + 100*2.9*1/100+.30, Sum of Shopify fee & PayPal fee).
AR account is linked with the customer.
We will consider only the create context, ie while creating the sales order from the sites.
Estimated Effort: 12h