Entering bank fees on a Deposit

Mindie
Mindie Member Posts: 124
edited 2007-06-28 in NAV/Navision Classic Client
My client's bank is charge a $25 for every wire transfer they receive from a customer. I am looking for the best way for them to account for this fee.

For example, the customer sends $1000 to pay for an invoice. The bank keeps $25 and their bank account is increased by $975.

We need the $1000 to apply to the invoice, the bank deposit to only show $975, and the $25 to go to the expense account.

Currently they are forcing a $25 discount on the invoice. Then they are making a manual journal entry to move the $25 from the discount account to the bank fee expense account.

There has to be a better way!

My first thought was to create the first line of the deposit to the customer for $1000 and then make a second line to deduct the $25 from the G/L account. The posting routine will not allow a debit amount.

I could find and comment out the code that is preventing that post but I haven't determined the consequences of that. Before I run through all of that I'd thought I'd ask for other ideas?

What do you think would be the best solution to this problem?

Thanks!

Comments

  • bbrown
    bbrown Member Posts: 3,268
    Process the customer payment and bank fee as 2 different transactions.

    Transaction 1:

    The customer has paid $1000 towards an open invoice:

    CASH $1000 Debit
    AR $1000 Credit

    Apply payment to invoice

    Transaction 2:

    Bank charges you $25.00

    Option 2:

    Treat the $25 as a payment discount.



    Cash $25 Credit
    Bank Fees $25 Debit
    There are no bugs - only undocumented features.
  • Mindie
    Mindie Member Posts: 124
    Thank you for your reply.

    Option 1 will result in a bank deposit that does not equal the bank statement. This will make bank rec. impossible.

    Option 2 is what they are doing now. It's a PITA.

    Does anyone know what problems would be caused down stream if I comment out the error that is preventing them from posting the debit on the bank deposit?
  • ecclectic
    ecclectic Member Posts: 176
    Mindie wrote:
    Thank you for your reply.

    Option 1 will result in a bank deposit that does not equal the bank statement. This will make bank rec. impossible.

    Use the same document no for both transactions. when reconciling u just cumulate transactions having same doc no.
  • Mindie
    Mindie Member Posts: 124
    So have a deposit for $1000 and then a journal entry to the bank account for -$25.

    It might work.

    Since 75% of their payments come in this way it is still messier than I'd like. It does require 2 different screens and still an ugly bank rec.

    I suppose it is better than what they are doing currently.
  • ecclectic
    ecclectic Member Posts: 176
    Mindie wrote:
    It does require 2 different screens
    .

    u can actually process both entries in the general journal batch if u want.
  • Mindie
    Mindie Member Posts: 124
    That's very true. They like the deposit form but I can just have them move the whole transaction over to the gen journal.

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