Deposit Configuration Example

Suppose that your company works with a processing center. The processing center collects credit card payments from your customers and at the end of the month transfers collected amounts to your bank account. The processing center accepts payments made by using Visa and MasterCard. The processing center charges 2.9% per transaction made by using Visa and 3% per transaction made by using MasterCard. The bank charges $0.20 per $100 of the amount deposited by the processing center.

In this topic, you will read about how to configure deposit processing according the example, process the created deposit and view the generated transactions.

Configuration of Deposit Processing

In MYOB Acumatica, you create the following entities:

  • General Ledger accounts: Bank Account of the Asset type; Deposits from Customers account of the Asset type; Fees and Charges account of the Expense type
  • Entry types: BANKCHAR (Disbursement type of transactions, CA module, Fees and Charges offset account) for bank charges; PROCCHAR (Disbursement type of transactions, CA module, Fees and Charges offset account) for processing center charges
  • Bank cash account: Bank Cash Account to deposit payments
  • Clearing cash account: Clearing Cash Account, linked to the Deposits from Customers GL account, to temporarily store credit card payments
  • Payment methods: Visa; MasterCard

Then you associate entry types with the bank account on the Entry Types tab of the Cash Accounts (CA202000) form, and payment methods with the clearing cash account on the Allowed Cash Accounts tab of the Payment Methods (CA204000) form. After making and saving these associations, you specify processing charge rates for each payment method (as shown in the table below) by using the Clearing Accounts tab of Cash Accounts form.

Clearing Account Payment Method Charges Type Charge Rate, %
Clearing Cash Account Visa PROCCHAR 2.9
Clearing Cash Account MasterCard PROCCHAR 3.0

Deposit Creation

Once the configuration is finished, you use the Payments and Applications (AR302000) form to record credit card payments processed by the processing center to the Clearing Cash Account. Suppose you have recorded the payments shown below.
Payment Method Amount
Visa 100
Visa 150
Visa 210
MasterCard 250

At the end of the month, the processing center transfers the collected payments to your bank account and sends you the statement, or you can view the list of transferred payments online if the processing center provides such a service.

You use the Bank Deposits (CA305000) form to create a deposit according to the statement sent by the processing center. You add the recorded payments on the Payments tab. Once payments are added, you can view the charges applied by the system on the Charges tab. If you have added all the payments listed above, the applied charges are as follows.
Charge Payment Method Charge Rate, % Chargeable Amount Charge Amount
PROCCHAR Visa 2.9 460 13.34
PROCCHAR MasterCard 3.0 250 7.50

In the Summary area of the Bank Deposits form, you can see that the deposit total is $710 and the total amount transferred to the bank is $689.16. You save the deposit with the Balanced status and wait until the bank notifies you that the deposit is processed. You can wait for a bank statement or you can view the list of bank transactions online if the bank provides such a service.

Deposit Release

Suppose that the bank has confirmed the deposit processing and you have received a statement. You open the saved deposit and add the bank charges applied (on the Charges tab of the Bank Deposits form). In our example the charge you add has the following settings.
Charge Payment Method Charge Rate, % Chargeable Amount Charge Amount
BANKCHAR EMPTY 0.0 689.16 1.40
Once bank charges are added, you compare the deposit in the system with the confirmation document you have received from the bank. If the details are correct, you release the deposit. The system generates the transactions shown in the following table, which you can view by clicking the batch number on the Financial tab of the Bank Deposits form.
Note:
The Separate Charges check box is cleared on the Financial tab of Bank Deposits. For details on the use of this check box, see Finance Charge Transactions.
Account Debit Amount Credit Amount
Deposits from Customers 0.00 100.00
Deposits from Customers 0.00 150.00
Deposits from Customers 0.00 210.00
Deposits from Customers 0.00 250.00
Bank Account 687.76 0.00
Fees and Charges 13.34 0.00
Fees and Charges 7.50 0.00
Fees and Charges 1.40 0.00