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

Gsolutions · ‎December 29, 2018

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My question is how should we classify all of the cash being withdrawn by us and then how do we classify the refund by the processing company to our account?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

Rustler · ‎December 29, 2018

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

Rustler · ‎December 29, 2018

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

Jd1991 · ‎February 02, 2022

Hi did you ever figure this out. Trying to figure out what category to put these transactions under. All the transactions are through my business account linked to quickbooks.

Jen_D · ‎February 02, 2022

Thanks for posting here, @Jd1991.

I want to share the steps to help you out with this concern. However, I want to know more about the issue you're having. Can you please describe what type of entries are you trying to add in QuickBooks and its purpose. Any details will help.

Also, we wanted to make sure everything is accounted for correctly, so your financial reports are accurate. Since this issue requires in-depth accounting processes, we do recommend that you reach out to an accounting professional first. We can only provide the steps you need to do in QuickBooks, but handling your books is best assisted by your accountant.

If you don't have one, we can help you find someone to help you. You can visit the following link to locate accountants based in the US: https://quickbooks.intuit.com/find-an-accountant/

Post here for the additional details or updates about this topic. I'll be around to help you.

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