Accounting Cheat Sheet

During the integration, you have the flexibility to configure accounts for different transaction types. While you can decide to use a single General Ledger Account for multiple transaction types, selecting a GL Account for all transaction types is mandatory

  • PSCASH - Paystand Clearing Account (similar to an undeposited account): This account serves as an intermediary for funds before they are fully processed. This account is created at the time of implementation.
  • GL for Convenience Fees - This GL account records the fees that a merchant charges its customers for the convenience of using Paystand services, especially credit card
  • GL for Incentive/Discount - This GL account records any discounts or incentives offered by the merchant to its customers at the time of payment.
  • GL for Merchant Fees - This category is used to track the fees imposed by Paystand on merchants for utilizing its services.
  • GL for Disputes - This section is designated to handle transactions that are under dispute, initiated by the payer (customer).
  • GL for Refunds- This account is used to record any refunds/write-offs emitted to the payer by the merchant. This account is used only when the invoice remains closed upon a refund.
  • GL for Adjustments - Although rarely used, this account allows Paystand to reconcile any discrepancies due to technical errors.

Let’s have a look at some examples:

Payment

  • Document Type: Payment
  • Impacts: Debit PSCASH, Credit Customer AR.
  • Applied to: Sales Invoice; in some cases, a debit memo.

Convenience Fees

  • Document Type: Debit Memo
  • Impacts: Debit Customer AR, Credit Convenience Fee Account
  • Applied to: Payment
  • Example: If a $100 invoice includes a $3 convenience fee, Paystand will process a $103 payment, allocating $100 to the invoice and $3 to the debit memo.

Incentive

  • Document Type: Credit Memo
  • Impacts: Credit Customer AR, Debit Incentive Account
  • Applied to: Invoice
  • Example: If a $100 invoice has a $2 incentive, Paystand will process a $98 payment and a $2 credit memo will be created, and applied to the invoice to close it.

Disputes

  • Document Type: Journal Entry
  • Impacts: Debit Dispute Account, Credit PSCASH
  • Applied to: None
  • Examples: If a payment is disputed by the payer, a dispute journal entry is created without impacting the invoice.

Payment Return

  • Document Type: Debit Memo
  • Impacts: Debit Customer AR, Credit PSCASH
  • Applied to: Payment
  • Examples: In scenarios such as insufficient balance or invalid account, if a payment fails, the original payment is unapplied from the invoice. Then, a debit memo is applied to the payment, reopening the invoice and allowing the merchant to receive additional payments.

Refunds

  • Document Type: Cash Receipt Journal of type Refund
  • Impacts: Debit Customer AR, Credit PSCASH
  • Examples: Whenever a refund is issued, the invoice will remain paid, and a refund document will be created against the customer account. This refund document will reference the original payment in its description to provide a clear audit trail and justification for the refund.



 

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