Processing fee often incur when payments and refunds are processed by payment service providers (PSP). Such transaction costs are represented as Fee records on Leapfin Platform. Journal entries are created on Leapfin Platform for each processing fee.
|calendar date of when the transaction cost is charged|
|full amount of the transaction cost|
|e.g. "Cost of Sales"|
Company XYZ uses Stripe to process a $100 payment on Jan 1st. Stripe charges 2% (i.e. $2) processing fee on the transaction.
When Stripe reduce the processing fee from payment amount, the following journal entry is created.
|Date||Account||Debit Amount||Credit Amount|
|01/01/2022||Cost of Sales||2|
Updated about 2 months ago