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Thread: Processing Yoco Card Transactions in Pastel

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    Question Processing Yoco Card Transactions in Pastel

    Hi Guys,

    Please assist...

    We used to use a Capitec Card Machine for card payments. The client's card was swiped, and 2 days later the funds appeared in our bank account. I then allocate this payment straight to the client's account as a payment. At the end of the month, the fees and commissions were deducted once off for the transactions done that month, which I used to capture against the relevant expense account.

    We have however cancelled the Capitec Card Machine, and acquired a new Yoco card machine. Yoco deducts their fee off every transaction BEFORE the payout. (For example, the client swipes for R2500.00, and R2415.19 is transferred to our account 2 days later.

    If I allocate the R2415.19 to the client's account as a payment, there will obviously be a R84.81 balance.

    What would be the right way to capture the above?

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    Diamond Member Neville Bailey's Avatar
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    I would capture the R2500.00 in the cashbook receipts journal and allocate it to the customer account. Then capture the R84.81 as a negative amount in the cashbook receipts journal (using the same reference), and allocate it to the relevant expense account.

    By doing it as above, the common reference will consolidate the two entries into a single receipt amount of R2415.19 when you do your bank reconciliation, and when you run your cashbook detailed ledger, so that it corresponds to what you see on your bank statement.
    Neville Bailey - Pastel Accounting Consultant
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Hi Neville,

    Always happy to see your name in a thread, because I know your answer is always the solution

    Thank you so much!

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    Bronze Member Xplosiv's Avatar
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    Would this work the same way in Sage?

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    Neville,

    Sorry, will the VAT still work out correctly when I select the appropriate tax type when capturing the R84.81 as a negative?

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    Diamond Member Neville Bailey's Avatar
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    Quote Originally Posted by Ola View Post
    Neville,

    Sorry, will the VAT still work out correctly when I select the appropriate tax type when capturing the R84.81 as a negative?
    Good question - I haven't tested it, but it's possible that the VAT in the R84.81 amount might reflect as a negative output tax. Perhaps you should rather capture that amount as a cashbook payments entry, but still use the same reference as the net R2,500.00 amount. Then you can be sure that the VAT will reflect as a positive input tax.
    Neville Bailey - Pastel Accounting Consultant
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Yoco

    Quote Originally Posted by Neville Bailey View Post
    I would capture the R2500.00 in the cashbook receipts journal and allocate it to the customer account. Then capture the R84.81 as a negative amount in the cashbook receipts journal (using the same reference), and allocate it to the relevant expense account.

    By doing it as above, the common reference will consolidate the two entries into a single receipt amount of R2415.19 when you do your bank reconciliation, and when you run your cashbook detailed ledger, so that it corresponds to what you see on your bank statement.
    How do yoco calculate the R84.81 as an excel formulation? For example The invoice amount being R2208. The amount on the bank statement is R2135.64.

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    Hi Ola

    What a fantastic question. I have been mulling over this transaction, what data flows and how to account for it the entire evening.

    In my view your debtor is YOCO. They collect cash from your cash customer at the point of sale. So when cash is received from YOCO through your cash book receipts it should be allocated to YOCO, not the cash customer he/she already paid and for that reason is not a debtor to start with. I have made an illustration below to show how there are 4 transactions in my view.

    Click image for larger version. 

Name:	Capturing YOCO transactions on Pastel.jpg 
Views:	17 
Size:	31.1 KB 
ID:	7633

    I am currently thinking how I can illustrate to you how to capture the transaction quickly in Pastel. I am almost there and will share it asap.

    I do think it is very important to see the transactions as they really happen, because this will help sort out your receipting process.

    I hope this has assisted. I will post soon post how to use Pastel to quickly post this.

    All the best,
    Alec Candiotes CA(SA), MCom Taxation
    Last edited by Alec Candiotes; 06-Sep-19 at 09:55 AM.
    www.mybi.co.za
    alec@mybi.co.za

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    Hi Alec

    I have been checking with some clients and some treat this in a very strange way.

    The correct treatment (in my opinion anyway), although I don't know how you would do it in Pastel, is that the original sale is the equivalent of a cash sale, because you have no further claim against the original customer.

    The "cash on hand" account .... I can't really decide if it is a cash equivalent or a debtor but I lean towards cash equivalent. That account credits the linked account the next day, less a fee. Personally I treat the fee as a bank charge. Perhaps it is a commission?

    It is not a quantum leap from the old credit card clearing mechanisms, just faster and mostly cheaper.

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    Alec,

    Quote Originally Posted by Alec Candiotes View Post
    Hi Ola

    What a fantastic question. I have been mulling over this transaction, what data flows and how to account for it the entire evening.

    In my view your debtor is YOCO. They collect cash from your cash customer at the point of sale. So when cash is received from YOCO through your cash book receipts it should be allocated to YOCO, not the cash customer he/she already paid and for that reason is not a debtor to start with. I have made a illustration below to show how there are 4 transactions in my view.

    Click image for larger version. 

Name:	Capturing YOCO transactions on Pastel.jpg 
Views:	17 
Size:	31.1 KB 
ID:	7633

    I am currently thinking how I can illustrate to you how to capture the transaction quickly in Pastel. I am almost there and will share it asap.

    I do think it is very important to see the transactions as they really happen, because this will help sort out your receipting process.

    I hope this has assisted. I will post soon post how to use Pastel to quickly post this.

    All the best,
    Alec Candiotes CA(SA), MCom Taxation
    How is the yoco commission/charge calculated? Do they take the sale amount x their commission, + Vat?

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