Credit Card Processing Discounts
This solution offers one option for processing credit card receipts on which transaction charges are immediately applied and only the net amount is deposited to you bank account. This solution assumes that you do not use Customer Discounts Allowed in their normal capacity (i.e. giving Customers a discount for paying their invoices early, such as 2% 10 Net 30 Terms, which are due in 30 days but offer a 2% discount for payment within 10 days). See the Solutions linked below for other options
Many credit card processing services assess their charges per transaction. When you process a credit card, the discount and transaction fees are immediately applied and only the net amount is deposited to your bank account. In order for your Bank Account to accurately reflect the deposit amount, use the Discount to make the Receive Money transaction the net amount of the transaction. By setting the Default Discounts Allowed Category to your Category for credit card processing expenses (and not using it for regular Discounts) and using the option to create Receive Money transactions you can apply credit card payments easily. See other Solutions linked below for ideas on how to track credit card information for processing your captures (with online software or a terminal) in batches. (3190)
If you do not use Customer Discounts Allowed in its normal capacity (i.e. giving Customers a discount for paying their invoices early, such as 2% 10 Net 30 Terms, which are due in 30 days but offer a 2% discount for payment within 10 days), you can use it as a quick method of recording Discounts you pay for Credit Card processing.
In the Customer Prefs, select the Category for credit card fees as your Default Discounts Allowed Category. If the Account Type is anything other than Cost of Sales (e.g. Expense) Big Business will alert you that a Cost of Sales account was expected but will accept your choice. Check with you CPA if you are unsure which Account Type to specify for your credit card processing fees.
In the picture, the Invoice is for $100. A Receive Money transaction has been created from the Receipts tab on the Invoice. Clicking the Plus button (+) creates a new Receive Money transaction to be saved with the Invoice. The credit card processing fees have been manually calculated to be $3.00 and entered in the Discount field. The Applied Amount is manually entered as the new Amount Due (overriding the default $100).
When this Invoice is saved, a Receive Money transaction will be automatically created in the amount of $97.00 and $3.00 will be posted to the Category specified in the Default Discounts Allowed Category.
In the example above, the Customer's credit card information is entered in the Comment on the Receipt. Alternatively, you may want to enter the credit card information in the Invoice Comment (on the Invoice tab) depending on how you process the capture of funds. It is also a good idea to put the Invoice Number or your Approval Code in the Reference# field for future reference.
Related: