A few customers have asked how to record income transaction details that are paid through Go Cardless but are credited to their bank account as a single (monthly) transaction?
When your bank transactions are entered or imported, the transaction for Go Cardless is aggregated as a single lump sum amount of income. However, within that income will be purchases for several difference things such as membership fees, equipment hire, one-off payments etc. These will have different Cost Codes (and possibly Events, Funds and Memberships).
So what's the best way to handle this?
The recommended approach is to treat the Go Cardless account like another cash account as follows:
- Create a new Account called “Go-Cardless”
- Import* (or manually enter) the detailed transactions from your Go-Cardless statement/download and charge them to the appropriate Cost Codes (Event, Fund, Membership, etc..)
- At the end of the month create an Account Transfer transaction from your Go-Cardless Account to your Bank Account (this similar to how you would do your cash-banking). This will clear your Go-Cardless Account balance and move the cash to your bank account.
- Importantly, when you enter or import your bank account statement you should delete (or don't enter/import) the Go-Cardless receipt transaction so that it's not double-counted (the Account Transfer transaction above now handles this).
- Finally, when you reconcile your Bank Account, you will be able to check that the Account Transfer transaction matches the aggregated Go Cardless receipt.
*Tip: You should also consider if you want to nett-out your Go-Cardless receipts and transaction fees during the import => Please see this tutorial if you need to do this: https://clubtreasurer.com/blog/transaction-import/%23paymentSystem&source=gmail&ust=1705419006083000&usg=AOvVaw05ycGkep_sHJt8lBbpyme k"> https://clubtreasurer.com/blog/transaction-import/#paymentSystem