How TransFirst Fees Are Recorded For An Order
An order for $200 in spirit wear is placed and paid for on Monday, August 3 at noon.
- It clears by 5:00 pm on Monday evening.
$200 will be deposited into your designated bank account for TransFirst on Tuesday.
On September 10 (could be the 8th - 10th) the transaction fees for the order will be deducted from your account.
From a bookkeeping perspective here is how this same transaction will look:
When the Order Is Completed:
- Income account - spirit wear: increases $200
- Asset account for TF deposits: increases $200
- Liability account for TF Fees: increases $3.75
- Expense account for TF Fees: increases $3.75
Recording TransFirst Fees:
On September 10 you will have an automatic withdrawal for the transaction fees. It is $3.80 so you will make the following manual entry:
- Decrease checking: $3.80
- Decrease liability: $3.75
- Increase Expense TransFirst Fees: $0.05
This takes into account the additional fees of $0.05 that we are unable to predict at the time of the transaction.