Stripe - how to record fees and GST on fees

Margaret Lokmer
Margaret Lokmer Member Posts: 29 Reckoner Reckoner
in Accounts Hosted

Hi All,

We are new to Stripe. When entering a payment via Stripe we are charged a fee and GST on the fee. What is your recommendation in recording this? My initial thought was via the "Make Deposit" function, entering the total income, entering the fee as a negative and applying it to an expense account, but then what do I do to record the GST? Entering it directly into the GST account will have it show up in the Balance Sheet but not picked up in the Tax Summary Report. This is where I get unstuck.

Any feedback is welcome.

Comments

  • GerryWinter
    GerryWinter Accredited Partner Posts: 1,576 Accredited Partner Accredited Partner

    We use a holding account, if you need a hand call me.

    Gerry id 6376

    Gerhard Winter

    Ph. 0418907140

    Reckon Store Next Door

    "Always at your Service"

    Email: gwinter0808@gmail.com

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,208 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    As Gerry said, use a holding (“Clearing”) account.

    This is a dummy bank account-type which allows you to receive (full) payment into it & pay the fees out of it (via a Write Chq) leaving a net amount squalling the net deposit into your actual bank account, which you then can either Transfer Funds or do another Write Chq for the movement ☺️

    Shaz Hughes.png

    Email | Website | Google Reviews | Facebook Reviews

  • Margaret Lokmer
    Margaret Lokmer Member Posts: 29 Reckoner Reckoner

    Thank you all. Using a holding account is not uncommon for me so I understand the process. Appreciate the feedback.

Categories