When you accept payments via card on Forwardly, the books in your connected accounting software will be automatically reconciled for credit card transactions. Forwardly works from a bank reconciliation perspective rather than bank feeds as bank feeds may vary. When reconciling a bank account, you can exclude those transactions. Here's an example:
Invoice Details:
- Invoice Amount: $56.95
- Handling Charges: $0.25
- Convenience Fee: $1.70
- Settlement Amount: $55.00
Forwardly will record the following entries in your books:
- Payment of $56.95 applied against the invoice, marking it as fully paid.
- A journal entry of $0.25 for handling charges (settlement fee for all the transactions in a batch) with the description: "Handling Charges for payout of $55.25 received on 10/17/2024."
- A journal entry of $1.70 for the convenience fee with the description: "Convenience Charges deducted from the payout of $55.25 received on 10/17/2024. Details: Invoice #1101, $56.95 (Convenience Fee $1.70)."