Administration 89: On-Line Income Processing When Transaction Charges Taken At Source

On-Line Income Processing When Transaction Charges Taken At Source

When transaction charges are deducted from income before it is paid to the school the following process should be followed:-

1. Print off the transaction listing which shows the gross income amount, charges and net income paid.
2. When the income comes down on suspense to reconcile, reconcile the income to the correct ledger code and note this on the report.
3.

Complete an on-line journal (Layout shown below) for the Gross transaction charge:-

(VAT claimed later)

  Dr: Gxxx Gxxxx 4205 (bank Charges) £ Transaction fee
  Cr: Gxxx Gxxxx Relevant income ledger code £ Transaction fee

 

On a half termly or termly basis email the VAT Team at DCC with the following information:-

1. Print off the transaction charges invoices/reports if available.
2. Complete a spreadsheet identifying the Gross transaction charges, VAT and net charge.
3. Email VAT Team the spreadsheet and any transaction invoices/reports.  Ask for VAT to be coded to:-
  Gxxx Gxxxx 4205 (bank charges ledger code as gross charge journaled to income ledger code)
4. When VAT received on suspense reconcile to relevant cost centre.

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