[GNC] How to handle a Square Transaction

[R. Victor Klassen]

What I do for Square is basically the same.  I am using invoices for the transactions involved.  In fact, it’s more complicated, since a few customers at the farmers’ market will use square while the vast majority pay cash, and we treat the farmers’ market as a single virtual customer.  So when part of the payment for a day’s market is through square, the invoice is ‘paid’ through square - to the Assets/Current Assets/Square Payments account - and the remainder is paid to petty cash.

Then when Square pays (2-3 days later) I put in a split transaction drawing it down from Square Payments and dividing the full amount into the amount that goes into the bank account and the amount that goes to Expenses/Bank Fees (I dion’t distinguish Square fees at the account level).  

Basically the same as below, but with the extra step of having an invoice involved.

> On Dec 5, 2018, at 7:16 AM, Maf. King <maf at chilwell.net> wrote:
> 
> Looks right to me, assuming all the account balances increase!
> 
> Maf.
> 
> 
> On Wednesday, 5 December 2018 11:52:08 GMT Overland Park Electric Company 
> wrote:
>> Thanks for the info.  I was actually shocked when I saw the money
>> transferred overnight.
>> I think I figured it out.
>> 
>> 
>> checking              120.00
>> credit card fees       5.00
>> job income                                  125.00
>> 
>> On Wed, Dec 5, 2018 at 5:31 AM Maf. King <maf at chilwell.net <mailto:maf at chilwell.net>> wrote:
>>> OK,
>>> 
>>> Assuming Square sits on your money for a day or 2 (or longer), I would
>>> create
>>> a couple of accounts.
>>> 
>>> something like
>>> Assets:Current Assets: Square
>>> and
>>> Expenses:BankingFees:SquareCommission
>>> 
>>> Record the payment as a 3-way split  (i'm never sure about which column is
>>> which, and I don't have GC open at the moment to test)
>>> Assets:C:S        +120
>>> Income                          +125
>>> Expenses:B:S    +5
>>> 
>>> then when square moves the money to your bank, I'd just do a simple
>>> transaction to move the 120 from Assets:Square to Assets:checking
>>> 
>>> If square don't sit on your money for more than a day, I'd just skip the
>>> new
>>> Asset account and do the 3-way txn straight into the main bank account...
>>> 
>>> HTH,
>>> Maf.
>>> 
>>> 
>>> 
>>> On Wednesday, 5 December 2018 11:18:00 GMT Overland Park Electric Company
>>> 
>>> wrote:
>>>> I don't use GC to create the invoice and I only enter the transaction
>>> 
>>> when
>>> 
>>>> I get paid.
>>>> 
>>>> On Wed, Dec 5, 2018 at 4:57 AM Maf. King <maf at chilwell.net> wrote:
>>>>> Hi,
>>>>> 
>>>>> do you create an invoice in GC (ie. accruals) or is this all
>>> 
>>> "cash-based"
>>> 
>>>>> accounting?
> 
> 
> -- 
> Maf. King
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> 
> 
> 
> 
> 
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