Recording C/C payments in Quickbooks

[visagephoto]

I have recently aquired a merchant account, however as most of my transactions will be CNP and I don't have audited accounts, the bank insists on holding all payments for 30 days before paying them into my bank account.

How should I record these transactions in Quickbooks V.8. i.e. Should I record on the date of the sale even though I don't have the cash in my account ( but the record will match the receipt), as a receivable, or into my undeposited funds account (deposit it after 30 days) etc.??

 

[MikeH]

Either use the undeposited funds account or create a sales suspense account (or similar). Then when funds are actually received they can be transfered to the relevant bank account. This means that your bank accounts on QB should match your actual accounts which is essential.

Mike.

 

[visagephoto]

Thanks Mike

I'll probably look into creating a suspense account as you suggested as it may be a better idea to keep these payments separate until the funds are received, failing that I'll just use the udeposited funds account.

 

[MikeH]

I use a sales suspense account as it helps keep the bank accounts straight. It is useful for cheques too. For example if you receive a lot of cheques and send them in to the bank together they get paid into your account in one transaction.

Mike.

 

[visagephoto]

Ok Mike, I've created a C/C sub account to my undeposited funds, and then sub accounts for each card accepted to the C/C account, not sure if the latter is required but I reckon it should make transactions easier to find and give a clear indication of how much income is coming from each card type.

Should this setup be ok, or is it a bit long winded.