Record Bank Service Charges when accepting Customer Payments

The ability to record bank service charges under Transaction > Customers > Accept Customer Payment is currently unavailable. This is categorized as Enhancement 10264.

As an alternative solution, we can follow the methods outlined below.

There are various alternative solutions for this. For the following option, we will use a sales amount of 100.00 and a bank charge amount of 10.00.

When a bank charge is shouldered by the company and will count as part of the payment from the customer:

Option 1 – Using Invoice and Journal Entry

A. Create an Invoice

1. Navigate to Transactions > Sales > Create Invoices
2. Create the Invoice as usual
3. GL Impact will be:

Debit Accounts Receivable 100.00

Credit Sales 100.00

B. Create a Journal Entry

1. Navigate to Transactions > Financial > Make Journal Entries
2. Entry should be:

Debit Bank Service Charge (Expense account) 10.00; select Customer linked to this Journal in the Name column. Credit Accounts Receivable 10.00; select Customer linked to this Journal in the Name column

C. Accept Customer Payment

1. Navigate to Transactions > Customers > Accept Customer Payments
2. Mark the Apply checkbox for the Invoice(s)/Journal(s) to be paid under the Apply tab > Invoices subtab
3. Mark the Journal Entry with the debited Expense account under Apply tab > Credits sub-tab
4. Save the Payment
5. GL Impact will be:

Debit Undeposited Funds / Bank Account 90.00Credit Accounts Receivable 90.00

Option 2 – Using the Bank Reconciliation

1. Navigate to Transactions > Bank > Reconcile Bank Statement
2. Enter the pertinent data in the bank reconciliation
3. Clear the transactions that will be reconciled
4. Enter the expense account for the bank service charge under the New Charges tab
5. Save the reconciliation
6. New journal entry created from the reconciliation will have the following GL Impact:

Debit Bank Service Charge 10.00

Credit Bank Account 10.00

When bank charge is shouldered by the customer:

Option 3: Use a Bank Deposit

A. Create the Invoice via Transactions > Sales > Create Invoices:

· GL Impact:

· Debit: Accounts Receivable 100.00

· Credit Sales 100.00

B. Create the Customer Payment via Transactions > Customers > Accept Customer Payments:

· GL Impact:

Debit: Undeposited Funds / Bank Account 100.000

·Credit: Accounts Receivable 100.00

C. Create the Customer Deposit via Transactions > Bank > Make Deposits:

Enter the expense account and amount for the bank service charge under the Other Deposits tab

Enter the expense account and amount for the bank service charge under the Cash Back tab

Mark the Payment for Deposit

Hit Save

•GL Impact:

· Debit: Bank Service Charge 10.00

· Credit Bank Service Charge 10.00

Option 4: Use a Journal Entry

·Navigate to Transactions > Financial > Make Journal Entries Entry:

Debit Account 10.00; select Customer linked to this Journal in Name Column

Credit Bank Service Charge 10.00; select Customer linked to this Journal in Name Column

Debit Bank Service Charge 10.00; select Customer linked to this Journal in Name Column

Credit Bank Account 10.00; select Customer linked to this Journal in Name Column

Note:1. In options 3 and 4, notice that the bank service charge has no impact on the books since this is shouldered by the buyer. This is only added to aid with bank reconciliation.