Understanding Paystand GL Sage Impact

Navigating the Paystand integration with Sage requires a clear understanding of how transactions impact your General Ledger (GL).

Understanding these GL impacts is crucial for accurate accounting and reconciliation within the Paystand and Sage integration.

You will find these configurations in the PS Dashboard> Integrations:

Screenshot 2024-02-28 at 12.51.05 p.m..png

Below, we outline the key GL accounts involved in the process, ensuring seamless accounting and reconciliation within your financial ecosystem.

Merchant's Checking Account ID in Sage:

The integration necessitates the checking account ID, where funds processed through Paystand will be deposited. This involves creating a journal entry to credit funds from the Paystand Checking account, established per entity in your environment, and debiting the provided GL/Checking account.

Screenshot 2024-02-28 at 12.51.44 p.m..png


GL Account for Discounts:

This account serves for Discounts.

The AR Adjustment is used to cover the amount that was discounted from the Invoice through using the Paystand’s integration.

GL account for Discounts | Posting Details

Screenshot 2024-02-28 at 12.53.43 p.m..png

GL Account for Convenience Fees:

This account is used to write the convenience. It is written in the form of an AR Adjustment and it is used to write the convenience fee onto the AR GL and offsetting with the account provided.

Note: Convenience Fees are not reconciled. The Convenience fee amount is reflected in the Payment Record and the Payment Record is what is reconciled.

Screenshot 2024-02-28 at 12.55.09 p.m..png

GL account for Convenience fees | Posting Details

Screenshot 2024-02-28 at 12.55.48 p.m..png

GL Account for Merchant Fees:

The Merchant Fee, the fee that Paystand charges for payments via card, is reflected as a Journal Entry, and it must impact Paystand Checking account, which can also be known as an Escrow account or Undeposited Funds account while the funds are settling.

In other words, the offsetting account is used to track the fees that Paystand charges for CC transactions.

Note: Some clients will decide to use the same GL for Merchant Fees and Convenience Fees to easily report on the Net of both impacts.

Screenshot 2024-02-28 at 12.56.48 p.m..png

GL account for Merchant fees | Posting Details

Screenshot 2024-02-28 at 12.57.19 p.m..png

GL Account for Disputes:

Defaulted to the Merchant Fee GL, the Dispute will very similarly follow the path of the merchant fee.

It will generate a Journal Entry that must impact Paystand Cash so that the Deposit from Paystand matches the Deposit in Sage.
The GL provided will be used to balance the amount credited to the Paystand Checking Account.

Note: Paystand will never extract funds from your bank account. Instead, the integration will use oncoming payments to cover both Refunds and Disputes

Screenshot 2024-02-28 at 12.58.10 p.m..png

GL Account for Adjustments:

The Adjustment GL is also very similar to both the Disputes and Merchant Fees.

The adjustment account is used by Paystand to write positive and negative balance adjustments to your General Ledger in case it is needed. It is mostly used on the rare occasion that Paystand needs to increase or decrease the overall amount of the transfer unrelated to any transaction in that same deposit. These adjustments are reflected at the time the Funds are transferred to your bank account.

Additionally, the amount adjusted can credit or debit the Paystand Checking account depending on the use case, as well as inversely impacting the GL that is provided to balance the journal entry.

Screenshot 2024-02-28 at 12.58.10 p.m..png

GL Account for AR Advances:

Advanced Payments allows Paystand clients to request or create a payment without an Invoice.

The system will in turn create an AR Advance record in Sage for the Customer Record from which it was requested, and will allow the Sage user to apply the payment to existing invoices under its Customer Record.

The AR Advance must impact Paystand Checking Account as it is reconciled, and the GL provided.

Screenshot 2024-02-28 at 12.59.23 p.m..png

GL account for AR Advances | Posting Details

Screenshot 2024-02-28 at 1.00.06 p.m..png

GL Account for Refunds:

Records refund transactions. Refunds are processed through the Paystand Dashboard, impacting this GL account. It ensures accurate tracking of refunded amounts within your financial records.



Was this article helpful?
0 out of 0 found this helpful