Merchant Service Transfer Bookkeeping Question

by Iain Gordon
(Wembley)

Merchant Service Transfer

Merchant Service Transfer

Hi, Using Sage line 50. Have received statement from our merchant service (PDQ). They have deducted their commission / charges from the money obtain from credit card sale and then passed on the remainder.

How do I show this within Sage? Customer account will show 100% paid. But bank account / allocation will differ. Do I create a purchase invoice? Many thanks for any help in this.

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Aug 24, 2023
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starstarstarstarstar 		Sage Line 50 Bookkeeping
by: BB

Using Sage line 50, you can handle the scenario where the merchant service (PDQ) has deducted their commission/charges and passed on the remainder to you by following these steps:

Record the Full Sale: Enter the full amount of the sale in the customer account, showing that the customer paid 100%.

Enter the Bank Receipt: When entering the amount in the bank account, use the net amount (after the commission/charges) that was actually received.

Create a Journal Entry or Expense Account: You'll need to account for the difference between the full sale amount and the net amount received.

This can be done by creating a journal entry that credits the bank account for the commission/charges and debits an expense account specific to merchant fees or commissions.

Alternatively, you can create a purchase invoice for the merchant fees or commissions, reflecting them as a business expense.

Here's an example of the journal entry:

Debit: Merchant Commission Expense (Number of commission/charges)

Credit: Bank Account (Amount of commission/charges)

This process ensures that your accounting records accurately reflect the actual transaction, including both the full sale amount and the deduction for the merchant service's commission/charges.

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Intercompany Expense Transfer

How do I moved expenses from jones brothers account to jones restaurant both having different bank account?

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Aug 24, 2023
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starstarstarstarstar 		Intercompany Bookkeeping Transactions
by: BB

Moving expenses from one business account to another, especially when the two entities have different bank accounts (such as from Jones Brothers to Jones Restaurant), requires creating specific accounting entries to reflect the transfer accurately. Here's how you can do it:

Identify the Expense: Determine the exact expense that needs to be moved from Jones Brothers to Jones Restaurant.

Create a Journal Entry in Jones Brothers' Account:

Debit: Due from Jones Restaurant (or a similar intercompany receivables account)
Credit: The specific expense account (to reduce the expense)
Create a Journal Entry in Jones Restaurant's Account:

Debit: The specific expense account (to recognize the expense in Jones Restaurant)
Credit: Due to Jones Brothers (or a similar intercompany payables account)
Document the Transfer: Make sure to document the reason for the transfer and ensure that both entities have agreed to the transaction. This might include a written agreement or memorandum.

Reconciliation: Periodically, reconcile the intercompany accounts to ensure that the amounts due from one entity to the other match.

Consult with a Professional if Needed: Given the complexity of intercompany transactions, it might be wise to consult with an accountant or financial professional who understands the specific laws and regulations that apply to your situation.

By following these steps, you can accurately reflect the movement of an expense from one entity to another, keeping both the accounting and banking records consistent and compliant.

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Tracking Loan Payment Transfers

by Gaile
(Wisconsin, USA)

I'm trying for the first time to use the QuickBooks budgeting feature and really stick to my budget. I can't figure out how to track payments on loans (credit cards, auto loan, etc.) Interest payments show up on my P&L (and budget vs. actual) but the payment to principle (which is just a transfer from checking account to the loan/credit card account) don't show up in my budget. Is there a way to do this?

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Aug 24, 2023
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starstarstarstarstar 		QuickBooks Transfers
by: BB

Yes, tracking both principal and interest payments in QuickBooks for budgeting purposes can be a bit tricky but is doable. Here's how you can track payments on loans including credit cards, auto loans, etc., in QuickBooks:

Set Up Liability Accounts: Create separate liability accounts for each loan or credit card to track the principal amounts.

Set Up Expense Accounts for Interest: You'll want to have separate expense accounts to record the interest portion of the payments.

Use the Split Feature: When entering the payment, use the split feature to divide the payment between the interest expense and the principal reduction.

Include Principal Payments in the Budget: When creating your budget, include the principal payments in the budgeting feature by assigning the appropriate amounts to the liability accounts.

Monitor Regularly: Check your budget vs. actual reports regularly to ensure everything is being tracked correctly.

Consult QuickBooks Support or a Professional if Needed: QuickBooks support, a knowledgeable bookkeeper, or a CPA might be able to guide you through the exact steps for your specific version of QuickBooks.

Keep in mind that QuickBooks may have different functionalities based on the version and customization you are using. The principles, however, should be similar.

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Transfer

What do I db and cr to show personal money transfer to business account?


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May 22, 2011
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star 		Debit Credit
by: Anonymous

Cr Owners Contribution
(an Equity account which increases with a Credit)
Dr Bank account
(an Asset account which increases with a Debit)

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Transfer of Assets

I want to transfer the cash assets from one C Corp to another C Corp. What bookkeeping entries do I make?

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Aug 24, 2023
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starstarstarstarstar 		Transfer Bookkeeping Entries
by: BB

Transferring cash assets from one C Corporation to another requires proper bookkeeping to ensure that both companies' financial statements accurately reflect the transaction. Here are the typical entries you would make:

For the Transferring (Paying) Corporation:

Debit (Decrease) Cash or Bank Account: The amount transferred will be debited from the corporation's cash or bank account.

Credit (Increase) an Equity or Expense Account: Depending on the nature of the transfer, you may credit an equity account, like an investment in the other corporation, or an expense account if it's for payment of services, etc.

For the Receiving Corporation:

Debit (Increase) Cash or Bank Account: The amount received will be debited to the cash or bank account.

Credit (Increase) an Equity or Revenue Account:
Again, depending on the nature of the transfer, you may credit an equity account, such as capital contributed, or a revenue account if it's for income from services rendered, etc.

Example Entries:

Transferring Corporation:
Debit: Bank Account $10,000
Credit: Investment in XYZ Corp $10,000

Receiving Corporation:
Debit: Bank Account $10,000
Credit: Capital Contributed $10,000

Ensure that all supporting documentation is maintained, such as transfer agreements or invoices, to substantiate the transaction. Consult with a CPA or an accountant to understand the exact nature of the transfer and to comply with any tax implications or legal requirements.

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Transferring a Vehicle to our Business.

by Niekia
(Canada)

I bought a work vehicle in February and I am going to start official bookkeeping as of July 1st. What will be my bookkeeping entry to transfer my vehicle officially to the business?

I know that I will debit our vehicle asset account at the FMV but I am unsure of the account that will need to be credited.

Thanks in advance for your help!

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Jun 30, 2011
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starstarstar 		Vehicle Transfer Transaction
by: Anonymous

When transferring a vehicle to your business you will Debit the Vehicle Asset Account and Credit Opening Balance Equity.

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Transferring Data From Sage Instant to Sage 50

Is it possible to transfer data to and from Sage Instant Accounting Plus V16 to Sage 50

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Aug 24, 2023
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starstarstarstarstar 		Sage Instant Accounting Plus V16
by: BB

Yes, it is possible to transfer data from Sage Instant Accounting Plus V16 to Sage 50. Sage is typically designed to allow data migration between different versions of its software to facilitate upgrades or transitions. Here's a general outline of how this might be done:

Backup Data: Always create a backup of your existing data before attempting any migration.

Data Export: Depending on the type of data you want to transfer, you may need to export it from Sage Instant Accounting Plus V16. This could be to a format like CSV or another supported file format.

Data Import: In Sage 50, you would then import the data using the Import option, matching the fields as required.

Use Conversion Tool: Sometimes, Sage provides conversion tools or assistance with data migration, which can automate and simplify the process.

Test and Verify: Once the data have been transferred, you should thoroughly check and verify that everything has been migrated correctly and is functioning as intended.

Consult Support or Professional Assistance: If you encounter any difficulties, it might be wise to consult Sage support or hire a professional with experience in Sage products to ensure that the data is transferred accurately.

Note: The exact steps and feasibility might vary depending on the specific versions, type of data, and your region. Always consult the user manuals, online resources, or professional help to make sure you're following the correct procedure for your particular situation.

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