Sometimes you will receive income, such as online and contactless donations, that incur a fee, and in some cases that fee is deducted before the payment reaches your bank account.
For example, let's imagine that an individual has donated via our website. The amount they've given is £20 but the processing merchant charges 2% per donation, which in this example equates to 40p. This is deducted before the payment is made to you; so the amount you received into your bank account was £19.60.
Your income from the online donation is £20, you've paid expenditure fees of 40p, and your bank has increased by £19.60 each of these elements needs to be reported accordingly within your accounts. Below are the steps on how to handle this type of transaction in MyFundAccounting.Online.
1) From the 'Dashboard' click "Transactions"
2) Click "Journal Entry"
3) Enter or select the date of the transaction you wish to record
4) Under 'Nominal Account' select the bank account you wish to use.
5) Enter the amount received into the bank account - In our example above this would be £19.60 - and ensure that the 'Debit' option is selected
6) Under 'Nominal Account' select the bank account you wish to use.
7) Enter the amount received into the bank account - In our example above this would be £19.60 - and ensure that the 'Debit' option is selected
8) Enter a reference and description of your choosing - remember that these details will appear on some reports, so if this transaction is a donation from an individual you may wish to keep these fields anonymous.
9) Click "Store"
10) Click "Add New Element"
11) Under 'Nominal Account' select the income code you wish to use.
12) Enter the total amount of the donation - In our example above this would be £20.00 - and ensure that the 'Credit' option is selected.
13) Click "Store"
14) Click "Add New Element"
15) Under 'Nominal Account' select the expenditure code you wish to use.
16) Enter the amount of the fees that have been deducted - In our example above this would be 40p - and ensure that the 'Debit' option is selected.
17) Click "Store" and you will be given the option to 'Post' the transaction.
18) If this is a transaction that you will be using regularly you may wish to "Memorise and post" the transaction, this will enable you to easily recall it for use in the future.
19) Once the transaction has been posted you will be given the audit number. Click "OK
