Credit card transactions in PRONTO are posted to a clearing account.
Background
The nature of ecommerce is that online payment transactions can be put through 24 hours a day, 7 days a week; this makes reconciliation of credit card payments more difficult due to different cut-off times for transfer of payments in to the supplier's account. For example, online payment transactions processed after 5PM at a given day may be accounted for by the bank in the following day. The effect of this issue is a variance between total orders value for a day compared to payments deposited into a supplier's account.
If you are with Direct Payment Solutions (DPS) (also known as Payment Express), you can read more about the reconciliation process here - http://www.paymentexpress.com/knowledge_base/faq/merchant_faq.html#reconciliation
Reconciling Credit Card Transactions
Pre-requisites
By setting a CSS Bank account in the system that records all the deposits from the online payment systems, you can create a journal entry that transfers the money from the CSS Bank account to the main account after reconciling the payments.
Pronto Setup
- Create a General Ledger Account that will be used for Online Credit Card Clearing for payments received from the website. This should be a separate account to any current cash deposit accounts. This is an asset account and should be setup near the current Cash at Bank or similar account.
- Under "Special Accounts Maintenance" within Pronto
Create a new entry with the A/C Name of "CSSBANK" – one word, without the quotes.
Save this entry
How it works
- Payment is processed on CSS via the payment gateway
- Integrator uploads the order and payment information into Pronto
- A journal entry is created (same as normal sales order)
i.e.
DRCSSBANK
CRDebtors (against the account on the order)
- At the end of the day, an amount is transferred to your account from the bank. This will be the total amount of all transactions up to a certain time (i.e. close of business for the bank)
- As part of the end of day process, the amount you received into your bank should be removed from the CSSBank account; the remaining balance will be any transaction that was processed after the end of day post. We recommend that you use the batch number (provided by the payment gateway with each deposit) as your journal entry reference number.
i.e.
DRNormal Cash Account $Amount Deposited to Bank Account
CRCSSBANK $Amount Deposited to Bank Account
- You may also download individual transactions detail from your payment service provider (if service is available), which would match up to each entry in the CSSBank account.
(Note: The above process should be used as a guide only; please consult your accountant or business manager to develop your own internal reconciliation procedure for online transactions)
Splitting based on Transaction Type
The transactions for the CSSBANK can be split out for Amex and EFT transactions using the following accounts:
CSSBANKAX (for Amex)
CSSBANKEFT (for EFT)
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