The Complexity of Merchant Processor Bank Deposits
When payment processors like Stripe or PayPal deposit funds into your bank account, the payout amount represents net revenue (Gross Sales minus Processing Fees). Booking net deposits directly to sales revenue understates gross sales and hides processing expense line items.
Splitting Gross Sales and Processing Fees
Proper accounting creates two entries per batch payout: crediting Account 706000 (Gross Revenue) for full customer charges and debiting Account 627000 (Bank & Merchant Processing Fees) for transaction costs.
Automating Payment Gateway Reconciliation in Bizohlala
Bizohlala accounting exports separate gross invoice totals from payment processing fees, ensuring perfectly balanced bank reconciliation.
How Bizohlala Solves This Automatically
Bizohlala exports itemized gross sales and merchant fee allocations for seamless bank deposit reconciliation.
Try Bizohlala Free Now →Frequently Asked Questions (FAQ)
Q: Why shouldn't net payment processor payouts be recorded directly as revenue?
A: Recording net payouts understates gross revenue and obscures payment processing expense metrics required for tax filings.