Go Cardless Fees in VT Transaction - The Book-keepers Forum (UK)

EmmaAlt · Member

Go Cardless Fees in VT Transaction

Shamus · Forum Moderator & Expert

Hello Emma,

You have made a sale for £50 and that should be recognised in the accounts as a sale for £50.

You have a transaction charge of £1.20 which is the equivalent of a bank service charge.

The service charge does not relate to the item being sold. It is a finance charge that was not necessarily incurred in the sale. i.e. you could have sold the item fo cash and received £50.

Your confusion is happening because the transaction is offset before you get your money but the reality of the transaction is that two transactions have taken place. One a sale for £50 and one an expense for £1.20. To state it any other way is understating turnover.

From VT's perspective there would be a three way reconcilliation between the sale, the expense and the bank

hope that makes sene,

Shaun.

EmmaAlt · Member

Ah thank you, so I've edited the bank transaction to show:

Debit Bank: £48.80
Debit Expense: £1.20
Credit Customer: £50.00 (and reconciled against their invoice)

The thing that was confusing me was when I did the initial upload from the bank I can only code to one account.

Leger · Master Book-keeper

Hi Emma

You've just reminded me I now have a few of these to do when I do my client's 21/22 accounts. They are daily sales in a cafe so the treatment will be different. (sumup rather than go cardless)

Personally I would have left the bank transaction as it is - coded to customer, and done a journal CR customer DR bank charges.* It has the same affect though so your way works.

*Just seen your EDIT and that's the way you had it first.

Zoorbing · Member

Go Cardless is a 'bank' account. As is Barclaycard/Sum up/Stripe/ Worldpay/other card providers. Set up as such in bookkeeping software. Upload and process customer invoices from the GoCradless bank if they are paid by card. Process charges to GO Cardless bank, care re VAT on charges now (see invoices). Entry on your Bank is actually the transfer from GoC to main bank that you see on the Bank statement, which happens a few days after the customer has actually paid, so more accurate way of recording. Reconcile both.

Not for cafe. You miss out the customer invoice element obvs

EmmaAlt · Member

Thank you for the further answers. Setting up the GoCardless bank account sounds like a good plan. At the moment I am just going to be doing simplified Self-Assessments with my business but good to have everything in place correctly should I get bigger down the line.