How do I Show the Processing Fee for a Money Changer Transaction?
Scenario
I need to withdraw USD in cash for my Petty Cash. My bank account is in USD and the money changer charges me a processing fee for converting my cheque into cash.
I will need to transfer $1000 USD to my petty cash account in USD, and the money changer processing fee is $50 USD.
How do I enter this transaction and display the processing fee in my Payment Voucher.
Solution
As we need to write a cheque for the money changer, we first create a non-trade type payment voucher. We use a suspend account to temporarily hold the value and a expense account for the processing fee.
This PV will now be $1050 which is the value that is being paid to the money changer. Next we create a non-trade type receipt voucher.
The bank to receive the value will be the petty cash account, and the account to use will be the suspend account.
Steps
I need to withdraw USD in cash for my Petty Cash. My bank account is in USD and the money changer charges me a processing fee for converting my cheque into cash.
I will need to transfer $1000 USD to my petty cash account in USD, and the money changer processing fee is $50 USD.
How do I enter this transaction and display the processing fee in my Payment Voucher.
Solution
As we need to write a cheque for the money changer, we first create a non-trade type payment voucher. We use a suspend account to temporarily hold the value and a expense account for the processing fee.
This PV will now be $1050 which is the value that is being paid to the money changer. Next we create a non-trade type receipt voucher.
The bank to receive the value will be the petty cash account, and the account to use will be the suspend account.
Steps
- Create the Payment Voucher to the money changer.
- Click -> ->
- We create the voucher as follows, you may need to create a new suspend account.
- Create the Receipt Voucher to move the value to the Petty Cash account
- Click -> -> ->
- We create the voucher as follows. Note we use the same account specified in the PV.
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