- Instances may arise where you receive payments from a customer and need to account for bank fees, especially with credit cards like American Express.
- The article walks through how to record both the cash received and the fee while applying the full invoice amount.
- In the example provided, a sales invoice for £1,200.00 is paid using American Express, with a £50.00 fee deducted, resulting in only £1,150.00 being deposited into the bank account.
- Three things need to be accounted for: the Cash Receipt of £1150.00, the Bank Fee of £50.00, and ensuring the full Sales Invoice is applied.
- The Cash Receipt Journal is used to post the cash, with the full amount of the Sales Invoice applied, along with the payment amount and the Bank Fee in the same document.
- G/L entries show Debtors being reduced by £1200.00, the Bank Account with an entry for £1150.00, and the Fee with an entry of £50.00.
- Customer Ledger entry for the full amount and a Bank Account Ledger Entry for £1150.00 are also present.
- The method provided ensures that bank fees on customer payments are handled effectively, with correct amounts recorded for bank reconciliation and fees.
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