Accounting for fees taken by providers prior to payment to me

OutoftheWoodsOutoftheWoods Member Posts: 1

Hi
I use Eventbrite and SumUp for my business. Both take a transaction fee before the sales amounts are transferred to me. How do I show their fees in the transaction recording. For example if I sell £500 of tickets and receive £480 in income how do I record the £20 as an expense?
Thanks
OutoftheWoods

Comments

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 173 ✭✭✭

    Simplest way would be by journal entry, crediting Sales with the amount charged and then debiting expenses with the same amount (call it Merchant Card Charges perhaps).

    I've assumed you're not trying to match up to customer invoices - if you are it's a little more convoluted.

  • BarsinABarsinA Administrator Posts: 260 admin

    Hey there @OutoftheWoods

    Just wondering if you've checked out our article on -->How to Account For Transaction Fees<--?

    This gives you some good visuals on how to use our split deposit/withdrawal. Reach out if you have any further questions regarding it!

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