After submitting payslips together with the cash disbursement to collection, the drawee bank bills us commission. Thta is, costs of payment transactions performed.

In automatic posting of cash disbursement you are offered a chance of simultaneous posting of costs of payment transactions.

The following are required in the Payment Methods register:

1. to post the total amount of receipt

• account for recording cash disbursement - CR (credit, total amount of disbursement)
• account for recording cash disbursement - DB (debit, total amount of disbursement)

2. to post value of commission (amount of commission = percentage * amount of disbursement)

• percentage of commission
• account for recording commission (posting commission amount to the debit side of account)
• commission's contra entry: account for recording cash disbursement - DB (posting commission amount to the credit side)

If neither percentage of commission or the account to which you can post it are not specified in the Payment Methods register, posting will not be performed!

Example:

Cash disbursement €100m costs of payment transactions 3%

The DEBIT account for recording disbursements 1109, credit account for recording disbursements 11705, account for recording commission 4150

1. Journal Entry in Automatic Posting:

2. Reconciling Bank Statements

Related topics:

• Automatic Posting of Cash Transactions
• Posting Directly from Document

For a general description of functions see:

• Cash