Cash Account ACH and Credit Card Receipts

When entering ACH or credit card payments in the Receive Money or Sales/Invoicing windows, you must select a cash account to record the deposit.

When you sign up for a merchant service to authorize and process your business credit card payments, that merchant service provider will arrange for ACH or credit card funds to be collected and transferred into your business's bank account at some point. Contact your merchant service provider to determine when funds are deposited into your business's checking account.

In Sage 50, you have several choices for selecting the required cash account, depending on when credit card funds are settled by your merchant service provider and deposited into your business checking account.

• If funds are transferred instantly (within 24 hours) into your business bank account, enter or select your company's checking account linked to the merchant processing service. This method is easier to manage and records the asset in your bank account at the time of receipt.
• If credit card funds are transferred at a later point in time, enter or select a "Credit Card Deposits in Transit" cash account at the time you record the customer receipt. Later, when funds are actually deposited into your business bank account, make a General Journal entry to record the transfer of funds. The journal entry can easily be reconciled on your bank statements and merchant service batch reports.

• The method you choose depends on when and how you want to record the asset and have it appear in reports and financial statements. Check with your accountant to determine which method is best for your business.
• Later, you can enter the merchant discount and processing fees as they are charged by your merchant service provider.