Recording Payments made through Payment Processors

When using payment processors, you will receive payments net the fees for the transaction. Here is how you can record these payments through Studio Designer accounting.

    A payment processor may subtract the processing fees from the amount your client paid. This means the amount deposited into your bank account will not equal the amount the client paid. To handle this, you will first need to record a Cash Receipt for the full client payment, then record a Cash Disbursement for the fees to the payment processor.
    1. Record the full payment amount from the client in Money In

      StudioPay users: When you receive a client payment, record the full payment through Payment Posting or the full amount in Money In. 

      All other users: When you receive a client payment, record the full payment amount in Money In. In the Amount field, enter the full amount your client paid, not the actual amount that you received into your bank. You can apply the funds to invoices and proposals as usual.

    2. Record an Office Payment for the fee amount

      Go to Money Out > Office Payments, and record a payment to your payment processor for the fees.

      1. Set the Pay to as StudioPay (You will need to create an Address ID for the payment processor)
      2. Set the Cash Account to the bank account you received the funds to
      3. Set the Payment Code to Manual
      4. Enter information in the Description field to denote this as a fee payment
      5. Click New Distribution and set the Expense Account. You should consult with your CPA on the best Expense Account, but it will likely be an account for recording processing fees.
      6. Click Save and Close
      7. On the main Money Out page, click Post Manual to post the fee payment

    This will record the payment and fees to your bank account. Then when you reconcile your bank account statement, you will reconcile the full cash receipt and the fee payment to equal the net amount you actually received into your bank account.