Talk:Client Payment: Agency Bill Credit Card

Client credit card payment - Why not post directly to bank account?

The agency bill client credit card payment document outlines the process of creating a "virtual credit card bank" for recording the client payments.

Why not post the client receipts directly to the premium trust bank account?

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Answer

If the full payment is deposited directly into the bank account, the client payment cash amount will not match the actual amount received at the bank.

When the bank account is reconciled, the operator will have to know that Client Cash - Expense Journal = Actual amount on bank statement.

For Example: $500.00 (Client Payment) - $15.00 (Credit Card Expense) = $485.00 (Actual amount deposited into bank).

	Client Receipt Correct	Client Balance Correct	Expense Entered	Cash Rec = Bank Trans
Deposit to CC Bank	Yes	Yes	Yes	Yes
Deposit to Bank Account	Yes	Yes	Yes	No

In addition, if the credit card deposit is received daily as a lump sum, the bank transfer amount will equal the actual amount deposited at the bank. Combining multiple receipts into a single deposit that equals the bank statement simplifies the bank reconcile process.