The Book-keepers Forum (BKF)

Post Info TOPIC: Go Cardless Fees in VT Transaction


Member

Status: Offline
Posts: 7
Date:
Go Cardless Fees in VT Transaction


I'm driving myself round the bend and I'm sure it's actually straightforward but I just can't figure it out.

I charge clients using GoCardless: they collect the money on my behalf and take a transaction fee.

I invoice a client so I have the invoice on their customer account on VT for eg £50.

I have a bank transaction from Gocardless for eg £48.80 (the fee gets taken prior to me receiving the money).

Am I better putting Go Cardless in as a supplier and reconciling the £48.80 bank? In which case I've nothing to match up to the client invoice.

Or reconcile the bank to the client account and journal the £1.20 to charges?

TIA

EDIT: I have it currently as the bank transaction reconciled against the client account and journalled the charges. Which, I'm thinking is correct.



-- Edited by EmmaAlt on Monday 18th of October 2021 01:03:41 PM

__________________

Emma



Forum Moderator & Expert

Status: Offline
Posts: 11930
Date:

Hello Emma,

You have made a sale for £50 and that should be recognised in the accounts as a sale for £50.

You have a transaction charge of £1.20 which is the equivalent of a bank service charge.

The service charge does not relate to the item being sold. It is a finance charge that was not necessarily incurred in the sale. i.e. you could have sold the item fo cash and received £50.

Your confusion is happening because the transaction is offset before you get your money but the reality of the transaction is that two transactions have taken place. One a sale for £50 and one an expense for £1.20. To state it any other way is understating turnover.

From VT's perspective there would be a three way reconcilliation between the sale, the expense and the bank

hope that makes sene,

Shaun.

__________________

Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



Member

Status: Offline
Posts: 7
Date:

Ah thank you, so I've edited the bank transaction to show:

Debit Bank: £48.80
Debit Expense: £1.20
Credit Customer: £50.00 (and reconciled against their invoice)

The thing that was confusing me was when I did the initial upload from the bank I can only code to one account.




__________________

Emma



Master Book-keeper

Status: Offline
Posts: 3802
Date:

Hi Emma

You've just reminded me I now have a few of these to do when I do my client's 21/22 accounts.† They are daily sales in a cafe so the treatment will be different. (sumup rather than go cardless)

Personally I would have left the bank transaction as it is - coded to customer, and done a journal CR customer DR bank charges.*† It has the same affect though so your way works.†

*Just seen your EDIT and that's the way you had it first.



__________________

John†

†Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Member

Status: Offline
Posts: 18
Date:

Go Cardless is a 'bank' account. As is Barclaycard/Sum up/Stripe/ Worldpay/other card providers. Set up as such in bookkeeping software. Upload and process customer invoices from the GoCradless bank if they are paid by card. Process charges to GO Cardless bank, care re VAT on charges now (see invoices). Entry on your Bank is actually the transfer from GoC to main bank that you see on the Bank statement, which happens a few days after the customer has actually paid, so more accurate way of recording. Reconcile both.

Not for cafe. You miss out the customer invoice element obvs

__________________


Member

Status: Offline
Posts: 7
Date:

Thank you for the further answers. Setting up the GoCardless bank account sounds like a good plan. At the moment I am just going to be doing simplified Self-Assessments with my business but good to have everything in place correctly should I get bigger down the line.

__________________

Emma

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2021 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookcert.co.uk.

Privacy & Cookie Policy  About