Unique Business Challenges and General Discussion

[jerrynorman]

The v5.0 functionality to permit Repeating Invoices to hit credit cards is excellent (although overdue).

Sort of related to that is how to keep up with collections from the Merchant (SPS). Is there an automated, or semi-automated, way to keep the MAS 90 Cash Receipts more or less current with payments made by the Merchant to the bank?  Keeping the MAS 90 bank balance more or less current with the actual bank balance is a real chore if you use a lot of credit card receipts.

Suggestions? 

[SRYork]

In theory, you should not have to record the actual receipt of cash from credit card transactions in detail. 

For the transactions we process in AR and SO, we post the credit card transaction amount to a separate credit card transaction receivable account.  This posting will be in detail or summary based upon how you have your options set.

Then to recognize the actual receipt of cash you would use the end of day settlement batch total ...

Dr. Cash in Bank                                             settlement amount

     Cr. Credit Card Transaction Receivable                                      settlement amount

I would use GL Journal entry to record this since the CC transaction amounts processed are not in your Accounts Receivable customer balances.

You can retrieve the details by printing the credit card settlement report. The details of this report is actually retrieved from the SPS data base to insure it includes all CC transactions and not just the ones we processed.  It is sorted by the MAS 90 GL entry reference (Source Journal + Register Number).  Any entry that was not processed by us, is totaled to with this being blank. 

You can print this report for a specific day to reconcile to a specific settlement batch total or for a date range. For example, if you entered the same period that is on your merchant statement you would have a means of reconciling to it. The idea was to provide:

1. A means of identifying CC transactions processed manually that need to be entered in the system
2. A way to tie the settlement batch total to your general ledger
3. A way to reconcile to your monthly merchant statement (We assumed it would be detailed by settlement batch total.)

If you post have your settings to post in detail, you would also have the detail from the AR / SO invoice posting in your GL account postings. 

Item 2 above assumes your sales journals are updated daily so that you don't have cutoff issues between them and your end of day settlement totals.  And, if you use terminal based settlement, this is also done daily.

[jerrynorman]

Thank you! I think this answers my questions for now.

[zip]

But what about B/R integration?  You still need the money received from credit card transactions to make it to the B/R module.

[SRYork]

The recognition of the settlement / cash deposit in bank reconciliation can be accomplished 3 ways.

1. Manually enter the deposit directly in bank reconciliation.
2. Instead of using GL Journal Entry, utilize GL Transaction Journal Entry to post the deposit since GL Transaction Journal entries can updated to Bank Reconciliation when the entry is updated to GL.
3. Use the GL Account detail line functionality in AR Cash Receipts entry to create the GL Reclass Journal Entry.