Identifying the ItsPayd processing fee Code

This Help File Page was last Modified on 03/21/2018

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Identifying the ItsPayd processing fee Code

This Help File Page was last Modified on 03/21/2018

The FTP Configuration Form used by the optional (i.e., must be Purchased and Registered) ItsPayd service requires the User to identify a Fees Sale Item Code for the associated ItsPayd processing fees

 

HelpFilesItsPayd-FTPConfiguration-FeesSaleItem

ItsPayd FTP Configuration dialog - Fees Sale Item

 

Sale Item - this field requires the Code that will used to track the associated ItsPayd processing Fees.

To facilitate the proper posting of the Receipts imported from ItsPayd, the Code for that processing Fee must be defined as a Sale-Purchase Item

 

HelpFilesItsPaydSalePurchaseItem

Sale-Purchase Item Form - Itspayd Processing Fees definition

 

Sale GL #  - The proper Sale GL # General Ledger Account Number must be assigned to the ItsPayd processing Fee Sale-Purchase Item record to ensure that all ItsPayd processing Fees incurred, are tracked and posted to the appropriate General Ledger Accounts.

This processing Fee Code is entered in the Fees Sale Item field on the ItsPayd FTP Configuration Form.  

This processing Fee Code is used later when offsetting the ItsPayd processing Fee that is internally charged (see the Why? and How? discussions below).  

 

Why? - Why is this ItsPayd processing Fee Sale-Purchase Item Code required?

When a Subscriber pays any portion of a Balance Due on an Invoice to ItsPayd, logically, the entire Amount collected needs to be applied to that open Invoice.

However,  an ItsPayd processing Fee for collecting that payment Amount has been incurred.

This ItsPayd processing Fee is not paid by the Subscriber, it is assessed to your Company.

Therefore, instead of depositing the entire payment (Receipt) that was collected by ItsPayd: The Amount collected minus the ItsPayd processing Fee is posted to the Invoice as follows:

a)The processing Fee is deducted from the collected Amount and the resulting net Amount is posted to the Invoice;

b)That same net Amount is Allocated to the associated Invoice.  

 

How? - Understanding how this Financial Transaction is posted within MKMS when importing and recording the collected Amounts:

1.First, a Receipt record is created for the net Amount that was actually deposited (i.e., the Amount collected minus the ItsPayd processing Fee)

That same net Amount is Allocated to the associated open Invoice.  

1.Next, a Credit Memo is created for the cost of that ItsPayd processing Fee.

That same Fee cost is also Allocated to the associated open Invoice.

 

The result:  the actual Amount that was collected by ItsPayd has now been properly applied to the Invoice.