Payment Gateways such as Razorpay collect Transaction Fees from its customers on payments received towards the invoices raised in Zoho Books. Razorpay also sends out a consolidated invoice of the charges and taxes applied on the transactions, which you can use to claim the Input Tax Credit while filing your GST returns.
Let’s take an example where you are a GST registered business owner and you collect payments from your customers via Razorpay. Say you raise an invoice for ₹10000 and Razorpay charges you a transaction fees of ₹200 (2%) and 18% GST on the fees.
The amount received would be the balance after Razorpay deducts the transaction fees. In such cases, you will have to record the total transaction fees as a separate Expense and manually add Journal Entries for the same.
To record the Expense,
Note: Razorpay charges transaction fees only on transactions over ₹2000 and the tax amount populated might not match with the actual tax amount. Click the Edit icon near the tax amount to update the actual amount.
To record this tax expense you will also have to add journal entries for the total transaction fees charged by Razorpay.
To add a Manual Journal:
Online accounting software
for small businesses.