QuickBooks: Credit card sales & posting?

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3 total messages Started by Tom of XOR Wed, 15 Dec 1999 00:00

#121

Author: Tom of XOR
Date: Wed, 15 Dec 1999 00:00

29 lines
2027 bytes

We accept credit cards online. Our bank processes these 
transactions and issues a monthly statement. The fees and 
charges are transferred directly into our bank account. The 
problem is that there is a delay of about 2 weeks before the 
money actually gets transferred into the bank account. Also, the 
monthly charge activity statement does not match exactly what is 
transferred due to the difference in timing of the statements and 
the fact that some charges are monthly while others are per 
transaction.

So, how should I account for sales via credit card?

Right now I am creating a cash sale for each transaction and 
putting the sale amount into a "fake" bank account called 
Merchant Credit Card. Then, I transfer the appropriate $ in and 
out of the real bank account as the statements indicate.

However, this creates an account I have to reconcile (or should) 
and the charge activity statements from the bank are just 
reports - not balanced as are the regular bank statements.

Would I be better off using an income or an asset account for 
the Merchant activity? Which? Any thought from others on how to 
handle this are greatly appreciated!

-----
Tom of XOR
Visit http://www.xor.cc 
for cyber clothez

Re: QuickBooks: Credit card sales & posting?

#122

Author: Vernon Paige
Date: Thu, 16 Dec 1999 00:00

59 lines
2453 bytes

Your current method is what I recommend (though I
hesitate to call it a "fake" bank account - how
about "Credit Card Clearing"?).  Aahhh, it's just
a name!

"Tom of XOR" <tom@unspam.xor.cc> wrote in message
news:385d8ddd.96351773@news.mia.bellsouth.net...
> We accept credit cards online. Our bank
processes these
> transactions and issues a monthly statement. The
fees and
> charges are transferred directly into our bank
account. The
> problem is that there is a delay of about 2
weeks before the
> money actually gets transferred into the bank
account. Also, the
> monthly charge activity statement does not match
exactly what is
> transferred due to the difference in timing of
the statements and
> the fact that some charges are monthly while
others are per
> transaction.
>
> So, how should I account for sales via credit
card?
>
> Right now I am creating a cash sale for each
transaction and
> putting the sale amount into a "fake" bank
account called
> Merchant Credit Card. Then, I transfer the
appropriate $ in and
> out of the real bank account as the statements
indicate.
>
> However, this creates an account I have to
reconcile (or should)
> and the charge activity statements from the bank
are just
> reports - not balanced as are the regular bank
statements.
>
> Would I be better off using an income or an
asset account for
> the Merchant activity? Which? Any thought from
others on how to
> handle this are greatly appreciated!
>
> -----
> Tom of XOR
> Visit http://www.xor.cc
> for cyber clothez
>
>
>
>

Re: QuickBooks: Credit card sales & posting?

#123

Author: Tom of XOR
Date: Fri, 17 Dec 1999 00:00

7 lines
1023 bytes

I have since gone to using an asset account for holding these 
specialized transactions.

-----
Tom of XOR
Visit http://www.xor.cc 
for cyber clothez

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