A2X generates daily summaries that consolidate your orders into one entry in your accounting system. These transactions will be offset against the gateways the payments were made through. There will be a small difference between what A2X posts to against your payment gateways and the actual amount received, this difference will be the fees charged to you by the payment provider.
What is a clearing account?
A payment clearing account is for tracking undeposited funds or funds in transit from your payment provider to your checking account. Similar to the concept of a suspense account or a holding account, clearing accounts exist as an account to record an entry that is waiting to be categorized. The clearing account has to be set up as a Current Asset account in the accounting system.
How do I use the clearing account?
When using a clearing account for BigCommerce sellers, we use clearing accounts to record the money you expect to receive from a payment provider that has not yet been deposited in your checking account. You should use the same clearing account when reconciling funds received from that payment provider.
In your accounting system, your clearing account balance will increase with each deposit from the payment gateway. You will then have A2X’s negative balance entries, reducing (offsetting) the amount in the clearing. Because A2X does not see the fees that the gateway charges, but these fees are deducted from the payment gateway deposits. This means there will likely be a small balance in the clearing account, and you will need to create a manual entry into your accounting system to account for the fees.
How many clearing accounts do I need?
We recommend setting up separate clearing accounts for each payment provider which makes reconciling against each payment provider's monthly statement easier.
Three steps to reconcile the payment clearing accounts:
Note: The reconciliation process mentioned below is a general suggestion. Please consult with your financial advisor or accountant to ensure you have the correct mappings and reconciliation process for your business financials.
Step 1: Post the A2X summary entry to the accounting system (see example below). This step generally debits the clearing account
Step 2: Allocate the deposits in the accounting system to the corresponding clearing account to credit the clearing account.
Step 3: For each payment processor we recommend generating a monthly statement to record any processing fees and other transactions that have not been accounted for from the A2X/BigCommerce integration. For example, you may have disputes and chargebacks processed directly through the payment platform, which are transactions outside of the BigCommerce integration and need to be recorded manually.
Using the example payout above, here is an example of what your balance sheet will look like at each step;
Note: There is generally a balance in the clearing accounts at month-end to account for the funds in transit to the checking account.
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