Anonymous wrote:What are entries for credit card transactions are the following correct???
Dr. Customer
Cr. Revenues
Dr.Credit card clearing Ac
Cr. Customer
This is correct, assuming you are billing the customer (order) then at time of billing the liability is instantly cleared by SAP from the Customer AR and shifted to a Credit Card Clearing Account as you've shown.
Anonymous wrote:Settlement:
Dr. GL receivable account for the card
Cr. Credit card clearing account
Again correct. I prefer to refer to the DEBIT account as a Bank Cash Settlement Clearing account, but you've expressed the concept correctly.
Anonymous wrote:If an authorization fails:
Dr. Customer
Cr.GL receivable account for the card
As Frank Lai mentioned correctly in his response, if the authorization fails at order save then any subsequent billing document will be blocked from posting to accounting anyway, so no postings are made until:
1) You obtain an authorization with that card or a new card
2) The order is released from credit hold thus allowing the posting to the Customer's AR - NOT to a Credit Card Clearing account
3) The credit card information is deleted from the order thus allowing the posting to the Customer's AR - NOT to a Credit Card Clearing account
Anonymous wrote:Are there any more entries involved here??? Is the GL receivable account also called Bank settlement cash clearing account???If not what debit credit entries take place for bank settlement cash clearing account and when??How do we charge fees??
The first interim account posted to when the invoice is posted to accounting is often referred to as a CREDIT CARD CLEARING account - it is an Open Item Managed Receivable account.
The second interim account posted to when the the SAP Settlement program is executed is often referred to as a BANK CASH SETTLEMENT CLEARING account - it is typically NOT an Open Item Managed Receivable account.
Once the settlement runs, SAP contains no additional automated functionality to take a feed from a clearinghouse to clear the open items in the BANK CASH SETTLEMENT CLEARING account. The clearing is typically done manually as follows:
CREDIT: BANK CASH SETTLEMENT CLEARING
DEBIT: CASH (revenue)
You can also perform the following postings to reflect fees:
CREDIT: CASH (revenue)
DEBIT: CREDIT CARD FEES
If your processor charges you fees on each batch you should do this every time you reconcile a desposit.
If your processor charges you fees on a periodic (ex: monthly) basis you should do this as you are billed those feed.