Cash Application & Deductions

asah

Team,

I need your help. Here’s my scenario.

I invoiced my Customer for $1,000.00

Created a Payment Journal

Credit = $1,000.00 w/ Offset account of BANK

Went into Payment Fee tab and recorded as payment fee of $50.00
When I run the payment journal report, I have the following g/l posting

Cash $1,000.00
A/R -$1,000.00
Tax $50.00
Cash -$50.00

The problem with this is that we have just said we received $1,000.00 into our bank account and then recorded a payment of $50.00 which reduced my cash. The desired g/l allocation should be as follows

Cash $950.00
A/R -$1000.00
Tax $50.00

I have tried every possible combination to record the actual bank deposit of $950.00 against an invoice that was originally $1,000