When you receive a card payment, Forwardly adds a detailed journal entry to your books, showing the full gross amount you earned. This detailed entry maintains all accounts, including those for the Convenience Fee/Surcharge and Forwardly Clearing Accounts. This ensures the necessary accounting trail is maintained and that all 1099 forms match your records for taxation purposes.
| Warning: Make sure your vendors are marked correctly as 1099 contractors or not in Forwardly, or else card payment processing fees may not be recorded accurately. |
Card processing fees for 1099 vendors
For your vendors who are 1099 contractors, Forwardly adds a detailed journal entry to ensure your books accurately reflect the full gross amount you earned. This helps make sure your 1099 forms match your records at tax time.
Card processing fees for non-1099 vendors
For vendors that aren't 1099 contractors, you’ll only see the main payment in your books, with no extra fee or clearing entries.
What do these card processing fee recorded entries look like?
Here's a sample journal entry for 1099 vendors:
| # | Account | Debits ($) | Credits ($) | Description |
| 1 | Forwardly Clearing (Fee Debit) | [Fee Amount] | Fee amount debited from Forwardly Clearing account. | |
| 2 | Surcharge Revenue | [Fee Amount] | Fee amount received on [Date] transferred to Surcharge Revenue. | |
| 3 | Convenience Fees | [Fee Amount] | Fee amount deducted as Convenience Fee on [Date]. | |
| 4 | Forwardly Clearing (Fee Credit) | [Fee Amount] | Fee amount credited from Forwardly Clearing account. | |
| 5 | Checking / Bank Account (User Defined) | [Gross Payment] | Total amount debited from Bank account (Payment to [Payer Name] - Inv #XXXX). | |
| 6 | Forwardly Clearing (Payment Credit) | [Gross Payment] | Total amount credited from Forwardly Clearing account (Payment to [Payer Name] - Inv #XXXX). |
If you have any other questions about how Forwardly records card payment processing fees, please submit a ticket for support.