Skip to main content
D
david-moorlandsl
April 5, 2022
Solved

Accounting for customer monthly Direct Debit payments via GoCardless

  • April 5, 2022
  • 1 reply
  • 0 views

My boss has recently set up a monthly subscription for our services.  Some of our customers pay a customised subscription instead of paying per invoice (so their costs are spread over a 12-month basis).  We use GoCardless Payment Plans.  I create the plans in GC, send the link to the customer and they do all the confirmations and signing up via GC.  Most of the time the service is carried out and the payments add up over the months and it is paid for during a 12-month period.  I have a list of transactions that I need to now sort!

My questions are:

How do I link the payments from GC to the individual customers, because it isn't doing it itself dur to the plans being set up via GC and not QBO.  Is it a case of each time a DD comes in I create a payment in their customer account, then link it back to the banking transaction?

Secondly, how do I account for the fees as I need the payments to GC from the customer to be the same as the amount they pay into GC, but the payments to the bank are minus the fees?

So when I go into the bank transactions, how do I make sure the monthly payment is accounted for and then the fee taken off so it matches what is coming in from GC?

It all seems so confusing to me.

Any help would be appreciated. 

Best answer by RCV

Thanks for taking the time to scour our Community space for potential solutions, david-moorlandsl. 

 

The GoCardless automatically collects payments from customers through scheduled direct debit. This starts processing on the invoice's due date. Then, you'll see your invoice marked as paid and the invoice payment is now on your Undeposited Funds account.  All transactions in your Undeposited Funds account appear in the bank deposit window. To learn more about creating deposits check out this article: Record and make bank deposits in QuickBooks Online.

 

Here's an article you can refer to for more details about GoCardless direct debit for QuickBooks. To account for fees and make sure the monthly payment is accounted for, we'll need to make sure that your settings are correct. When collecting payments through Direct Debit, the app automatically creates transactions in QuickBooks. This records the payments and subsequent deposits related to the payments. 

 

Just make sure to set up the settings correctly to record payments and deposits that are initiated through Direct Debit. Then, choose the account to associate with GoCardless Fees when a deposit transaction is created that includes fees as a line item. Here's how:

  1. In your QuickBooks company and go to Apps.
  2. Select My Apps, then under GoCardless for QuickBooks, tap Settings.
  3. Choose or review your settings:
    • Payment method for GoCardless payments- Select the Payment Method that will appear on the Receive Payment transaction that is created when a Direct Debit is initialised.
    • Expense category for fees charged by GoCardless- Choose the account to associate with GoCardless Fees when a deposit transaction is created that includes fees as a line item.
    • Bank Account where GoCardless deposits money- Select the bank account (in QuickBooks) to use when a deposit transaction is created when GoCardless makes payments to you. The options available here are the accounts in your QuickBooks chart of accounts that have a bank account type. Select a bank account that matches your GoCardless payout account. If you don't have a bank account in QuickBooks, please add a bank account in QuickBooks.
    • Classification for GoCardless payments made outside QuickBooks - Select Account.
  4. Press Save changes.

 

 

For more tips and other resources, you may visit our page in managing your business in QuickBooks: QuickBooks Self-help articles.

 

Do you need more help completing other tasks in QuickBooks? Please let me know and I'll assist you with some guides and other pointers. Have a great day.

1 reply

R
RCVAnswer
April 5, 2022

Thanks for taking the time to scour our Community space for potential solutions, david-moorlandsl. 

 

The GoCardless automatically collects payments from customers through scheduled direct debit. This starts processing on the invoice's due date. Then, you'll see your invoice marked as paid and the invoice payment is now on your Undeposited Funds account.  All transactions in your Undeposited Funds account appear in the bank deposit window. To learn more about creating deposits check out this article: Record and make bank deposits in QuickBooks Online.

 

Here's an article you can refer to for more details about GoCardless direct debit for QuickBooks. To account for fees and make sure the monthly payment is accounted for, we'll need to make sure that your settings are correct. When collecting payments through Direct Debit, the app automatically creates transactions in QuickBooks. This records the payments and subsequent deposits related to the payments. 

 

Just make sure to set up the settings correctly to record payments and deposits that are initiated through Direct Debit. Then, choose the account to associate with GoCardless Fees when a deposit transaction is created that includes fees as a line item. Here's how:

  1. In your QuickBooks company and go to Apps.
  2. Select My Apps, then under GoCardless for QuickBooks, tap Settings.
  3. Choose or review your settings:
    • Payment method for GoCardless payments- Select the Payment Method that will appear on the Receive Payment transaction that is created when a Direct Debit is initialised.
    • Expense category for fees charged by GoCardless- Choose the account to associate with GoCardless Fees when a deposit transaction is created that includes fees as a line item.
    • Bank Account where GoCardless deposits money- Select the bank account (in QuickBooks) to use when a deposit transaction is created when GoCardless makes payments to you. The options available here are the accounts in your QuickBooks chart of accounts that have a bank account type. Select a bank account that matches your GoCardless payout account. If you don't have a bank account in QuickBooks, please add a bank account in QuickBooks.
    • Classification for GoCardless payments made outside QuickBooks - Select Account.
  4. Press Save changes.

 

 

For more tips and other resources, you may visit our page in managing your business in QuickBooks: QuickBooks Self-help articles.

 

Do you need more help completing other tasks in QuickBooks? Please let me know and I'll assist you with some guides and other pointers. Have a great day.

Terms & ConditionsAccessibility statement