Credit Card fees recorded in GP

Dynamics GP
1

Okay we have an external application where our customers pay their invoices - if they use a credit card the application charges a 3% fee. So, a $1,000 invoice results in a $1,030 charge to customer and $1,030 goes to our bank account. We currently (just started) integrate the payments into GP. We currently create a $1,000 cash receipt applied to the $1,000 invoice. However - the Bank Register deposit will be $1,000 and the funded batch will be $1,030. I’m wondering if there’s a best practice how to record the $30 in GP. I’m thinking of creating a single GP customer - bring in the $30 as a cash receipt to the customer - making certain to hit a dedicated expense account - then at Month end maybe do a customer refund linking the customer to the credit card processor vendor? suggestions/ideas are welcome

2

Hi Bron,
A few questions to start with:
Sounds like you’re creating the invoice in GP first then rendering it into a program for payment. If that’s correct,

  1. Where in GP are you creating the invoice (Sales Trx Entry, Invoice Entry, or Receivables Trx Entry)?
  2. What program are you using to render the invoice for payment?

Your answers will give some ideas on what options might be available.
Thanks
Windi

1 Like
3

Thank you for your reply. Actually, Invoicing and payment are two independent events. Invoicing is SOP - posted. The customer thens logs into a payment portal and creates a Credit card Payment. The payment comes into GP as a cash receipt and is applied to the outstanding invoice. The cash receipt is posted and bank deposit created. Problem is the credit card processor collects a 3% fee which they include in the funding batch ot our bank. Therefore, the funding batch includes the fee and is always higher than the deposit GP creates. Our current methodology is to create a daily bank transaction equivalent to the credit card fees collected so that in GP Bank register we have a deposit for the cash receipts and bank transaction for the credit card fees and the two entries should total the funding batch in our bank statement. Not certain if there’s a more eloquent method or not.

4

Sounds like the cc processor is recording the fee as one lump sum (as opposed to on a per invoice basis) so you’re solution is probably the easiest one. You could setup a customer for the cc fee and import an invoice and payment at the same time, but I suspect that would take more file manipulation then it’s worth.