banking

When my customers pay for invoices sent to them, the payment gateway will collect the payments and deposit the cumulative amount into my bank account. I find it difficult to match that deposit with the corresponding invoices. What should I do?

Let us assume that you have associated the Authorize.Net payment gateway and have to get paid for 5 invoices. Let us also assume that the invoices are for $100 each. Whenever you receive payments online or record payments manually, you may select the Deposit To field as a bank account(Example: CITI) that you have set up in Zoho Books.

Once your customers pay for the invoices through the Authorize.Net payment gateway, the money will be held up with Authorize.Net for a short interval after which it will be deposited into your CITI bank account as $500.

Now, to match the five customer payments to a single deposit:

  • Add a new Bank Account in Zoho Books and name it as ‘Authorize.Net Clearing Account’.
  • Categorize the feed of your bank account (CITI Bank)
  • When you categorise your feed from bank account as a “Transfer Fund” from “Authorize.Net clearing” account, it will automatically post a “Credit” entry in the Authorise.Net Clearing account as well.
  • You would not require to make any manual entry in the clearing account at all.

With the bank rules, this can be further automated leaving much lesser work for reconciliation.

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