Processing Finance Charges in Acumatica

Posted on: March 1, 2021 | By: Josie Mah | Acumatica

Many customers use Acumatica to process credit card fees, PayPal fees, AR Factoring fees, and more. There are situations in which a user is processing AR payment application, and the processing center charges a fee. For instance, the customer has an invoice due of $1,000.00, and the check is sent and cleared through a processing center, giving a net amount of $980.00.  The difference of $20.00 is a fee that needs to be recorded as an expense. In this case, there are two possible solutions:

Solution 1: Create a payment type identifying the GL expense account and option for netting the amount.

  1. Create Payment type (CA203000)
  2. Assign the payment type to a Cash Account (CA202000) in the Entry Type Tab
  3. Process AR payment adding the finance charge manually
    1. The customer’s balance is reduced by the amount on the check.
    2. The GL expense is debited for the processing fee.
    3. The Cash Account is netted for the amount from the processing center.

Solution 2: Use a clearing account that allows the system to calculate the fee based upon an agreed percentage.

  1. Create Payment type (CA203000)
  2. Assign the payment type to a Cash Account (CA202000) in the Clearing Tab
  3. Process AR payment using the Clearing Account
    1. The customer’s balance is reduced by the amount on the check.
  4. Deposit the check into the Main Cash account and the system will auto calculate the fee.
    1. The GL expense is debited for the processing fee.
    2. The Cash Account is netted for the amount from the processing center.

 

Next Steps

Acumatica’s financial processing capabilities provide a future-proof way to help your company thrive in the new digital economy. As an Acumatica partner, Logan Consulting has helped clients grow their business with technological solutions. Contact us today to schedule a free consultation and find out whether a cloud ERP service like Acumatica can help transform your business.



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