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Gsolutions
Level 1

ATM Business cycling cash, How to classify refunds of cash from 3rd party processor?

As part of our business we seasonally run an ATM for a couple months every year. 

 

To quickly explain the situation I need to explain how the business works. 

We withdraw cash from our bank account, stock the atm with the cash. 

Customers come and withdraw cash at the atm and pay a convenience fee. 

A 3rd party processing company withdraws the cash from the customers account and deposits the combined days withdraws back into our business account. At the end of the month the processing company deposits the combined surcharges into our business account.

 

My question is how should we classify all of the cash being withdrawn by us and then how do we classify the refund by the processing company to our account? 

 

Thank you.

Solved
Best answer December 29, 2018

Best Answers
Rustler
Level 15

ATM Business cycling cash, How to classify refunds of cash from 3rd party processor?

Set up each atm machine as a cash type bank account

do a transfer from checking to the atm bank when you stock the machine

end of the day, transfer the daily total FROM the atm machine bank TO the checking account
that lowers the amount in the atm machine to reflect reality, and shows the merchant deposit in checking

end of month do a deposit to checking and use the surcharge income account as the source account for the deposit

View solution in original post

1 Comment
Rustler
Level 15

ATM Business cycling cash, How to classify refunds of cash from 3rd party processor?

Set up each atm machine as a cash type bank account

do a transfer from checking to the atm bank when you stock the machine

end of the day, transfer the daily total FROM the atm machine bank TO the checking account
that lowers the amount in the atm machine to reflect reality, and shows the merchant deposit in checking

end of month do a deposit to checking and use the surcharge income account as the source account for the deposit

View solution in original post

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