Accounting Cheat Sheet – Paystand Help Center

During the integration, you have the flexibility to configure accounts for different transaction types. While you can decide to use a single General Ledger Account for multiple transaction types, selecting a GL Account for all transaction types is mandatory.

• PSCASH - Paystand Clearing Account (similar to an undeposited account): This account serves as an intermediary for funds before they are fully processed. This account is created at the time of implementation.
• GL for Convenience Fees - This GL account records the fees that a merchant charges its customers for the convenience of using Paystand services, especially credit card.
• GL for Incentive/Discount - This GL account records any discounts or incentives offered by the merchant to its customers at the time of payment.
• GL for Merchant Fees - This category is used to track the fees imposed by Paystand on merchants for utilizing its services.
• GL for Disputes - This section is designated to handle transactions that are under dispute, initiated by the payer (customer).
• GL for Refunds - This account is used to record any refunds/write-offs emitted to the payer by the merchant. This account is used only when the invoice remains closed upon a refund.
• GL for Adjustments - Although rarely used, this account allows Paystand to reconcile any discrepancies due to technical errors.

Let’s have a look at some examples:

Payment

• Document Type: Payment
• Impacts: Debit PSCASH, Credit Customer AR.
• Applied to: Sales Invoice; in some cases, a debit memo.

Convenience Fees

• Document Type: Debit Memo
• Impacts: Debit Customer AR, Credit Convenience Fee Account
• Applied to: Payment
• Example: If a $100 invoice includes a $3 convenience fee, Paystand will process a $103 payment, allocating $100 to the invoice and $3 to the debit memo.

Incentive

• Document Type: Credit Memo
• Impacts: Credit Customer AR, Debit Incentive Account
• Applied to: Invoice
• Example: If a $100 invoice has a $2 incentive, Paystand will process a $98 payment and a $2 credit memo will be created, and applied to the invoice to close it.

Disputes

• Document Type: Journal Entry
• Impacts: Debit Dispute Account, Credit PSCASH
• Applied to: None
• Examples: If a payment is disputed by the payer, a dispute journal entry is created without impacting the invoice.

Payment Return

• Document Type: Debit Memo
• Impacts: Debit Customer AR, Credit PSCASH
• Applied to: Payment
• Examples: In scenarios such as insufficient balance or invalid account, if a payment fails, the original payment is unapplied from the invoice. Then, a debit memo is applied to the payment, reopening the invoice and allowing the merchant to receive additional payments.

Refunds

• Document Type: Cash Receipt Journal of type Refund
• Impacts: Debit Customer AR, Credit PSCASH
• Examples: Whenever a refund is issued, the invoice will remain paid, and a refund document will be created against the customer account. This refund document will reference the original payment in its description to provide a clear audit trail and justification for the refund.