Receipts and Deposits

A GL transaction will be posted with each payment receipt, whether from a credit card or from a cash or check. The system will use the payment method to determine the receivables account against which to post the receipt. Each credit card type and each payment type can have its own receivables account, so that Visa/MasterCard, Discover, and American Express payments can be posted to separate accounts. This is to facilitate settlements, as the various credit cards may have different settlement cycles. Cash and checks are usually debited to the “undeposited receipts” account, although this is also configurable.

At the end of the day, it is recommended that you match your daily settlements from the payment processors against the receivables from the credit cards and use the system to settle and reconcile the payments received during that day. Similarly, when you deposit received cash and checks, you should settle it against the bank’s records.