Overview

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.

Configuration

Required parameters

Fields	Description
`date`	calendar date of when the transaction cost is charged
`amount`	full amount of the transaction cost

Required accounts

Account	Description
`expense_account`	e.g. "Cost of Sales"
`cash_account`	e.g. "Cash"

Walkthrough

Company XYZ uses Stripe to process a $100 payment on Jan 1st. Stripe charges 2% (i.e. $2) processing fee on the transaction.

Event #1: fee is charged

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
	Cash		2