Hi. Customers pay by Yoco (POS) and Yoco automatically deduct their commission. So what appears on the bank account is the sale price less the commission. When capturing from the transaction downloaded from the bank statement the amount applied to the customer will obviously be less then what the customer owes. How do I now reconcile this please? Thanks in advance.
You'll have to create a service item for the commission deducted by Yoco. Then, apply it to the sales transaction you'll create in your QuickBooks Online (QBO) account, @Jen72. This way, you'll able to match them to the downloaded bank transactions and reconcile your account accordingly.
In your QBO account, all the information entered should be based on your real-life transactions. Before reconciling your account, let's first make sure the transactions entered in QBO is match with your bank statement. To do this, you need to create a service item for the commission deducted by Yoco. Here's how:
I've attached a screenshot that shows the fifth to eight steps.
After that, you'll have to create a sales transaction and apply the service item with a negative amount. This way, the commission will be deducted from the sales price. You can refer to the screenshot below for your reference.
Then, go to the For Review tab in the Banking menu to match the transactions. For the detailed steps, you can check out this article's Match an existing transaction section: Categorise and match online bank transactions in QuickBooks Online.
Once done, you should be able to reconcile your accounts smoothly. With this, I'd recommend performing the process every month. This way, you can early detect errors and monitor the growth of your business. Kindly refer to this article for a step-by-step guide: Reconcile an account in QuickBooks Online.
Additionally, you can pull up any transaction and reconciliation reports to make sure you've entered everything correctly. Just go to the Reports menu, then select the report you want.
Please let me know if you have other concerns. I'm just around to help. Take care always.
@Rea_M Thank you, for this...
@Jen72 This is how I handle the card payments.
I created a Control Account (I used a "cash and cash equivalent") and called it "Yoco Payments".
When I receive the card payment, I use the "Yoco Payments" account to receive the payment as the customer paid that full invoice amount. It shows as a deposit in the bank feed.
When I find the payment from Yoco on my bank feed, I allocate it to the "Yoco Payments" account. It shows as a payment in the bank feed. The Account balance is the amount that Yoco deducted as commission.
At the end of the day/ week/ month, I create an expense (Yoco Commission as Payee and Bank Charges: Yoco Commission as expense Account) for the "ending balance" amount to "zero" the Yoco account.
The Yoco Payments account and the report from Yoco can also now be reconciled.
I hope this helps.