Enter Merchant Discount Fees in Sage 50
How Do I...
When you receive a statement from your merchant
account service provider listing what credit card discount fees and
processing fees were charged, you need to record the expenses in Sage 50.
Typically, this is done on a monthly basis. Check with your accountant
about when you should record credit card payment discount fees.
Tip: If you use to process credit cards through Sage 50 and have set up an online merchant account, you can view your transaction history from the Transaction
Management menu in Virtual Terminal.
- From the Tasks
menu, select Payments.
Sage 50 displays the Payments
window.
- Enter or select the vendor ID that represents
your merchant account provider. To display a list of existing vendors,
type ? in this field, or select
the Lookup button.
- In the Check
Number field, enter the transaction reference number used by the
merchant account provider when it deducted its fees from your business's
bank account (for example, the transfer draft number). Do not leave the Check Number field blank.
-
In the Cash Account list, enter or select the bank account that
the merchant service provider uses to debit its fees.
Note: If you
have the Hide
General Ledger Accounts global option activated, the Cash Account
lookup list displays only names of cash accounts currently set up in the
chart of accounts.
- On the Apply
to Expenses tab, enter or select the expense account for each discount
fee and service processing fees (for example, CC
Processing Fee Expense).
Tip: Depending
on the detail you want to track, you may want to set up two merchant expense
accounts: CC Discount Fee (fees
charged for each transaction that is processed) and CC
Service Charge (monthly service charges and setup fees). If discount
rates are different depending on the credit card type (for example, American
Express, VISA/MasterCard, and Discover), you may want to enter and track
separate discount expenses (for example, AMEX
Discount Fee, VISA-MC Discount
Fee, and Discover Discount Fee).
Note: If you
have the Hide
General Ledger Accounts global option activated, Sage 50 will not
display the account ID field in this window. To modify the expense account
ID used for this transaction, you must select the Journal button.
- Enter the amount of the fee(s) that were charged.
- After you finish, select the Save button to record
the payment.
After merchant discount and payment processing fees are entered in Payments,
they can be easily reconciled in the Account
Reconciliation window when you receive your bank statement.
What do you want to do next?