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This page is for clients trialling card surcharges in MYOB AccountRight. If you're trialling this in MYOB Essentials, your help is here.

With online payments, your customers can pay you directly from their invoices. The fees and charges for this service include a 1.8% surcharge for card payments (credit cards, AMEX and debit cards). Historically there was no means of passing this surcharge onto the customer.

Now, if you've chosen for those surcharges to be paid by your customers directly to MYOB, when a customer pays by card MYOB automatically adds the 1.8% surcharge to the invoice amount.

How does it work?

When a customer pays by card, a 1.8% surcharge is calculated and added to the invoice total. The surcharge is paid directly to MYOB and the original invoice amount is paid to you.

You'll be notified when a card payment has been made, and you can then amend the original invoice to include the surcharge (so you can send the customer an updated invoice). If your business sells inventory items, you can add the surcharge by setting up a surcharge item.

You'll also need to record the receipt and payment of the surcharge (even though the money is paid directly to MYOB).

OK, let's step you through the details.

 

1. Set up a surcharge item

This is a one-off task and it's only required if your business sells inventory items. Once you've created a surcharge item, you can add it to invoices which have been paid by card, i.e. those which have incurred a surcharge.

If your business doesn't sell inventory items (you only sell services instead), skip this task and move onto Task 2 "Create and send the invoice" below.

  1. Go to the Inventory command centre and choose Items List.

  2. Click New.

  3. Set up the item:

    • Enter an Item Number that suits your item list.

    • Enter an Name, such as Surcharge or similar.

    • Select the option I Sell This Item.

    • Choose an Income Account for Tracking Sales.

      • You might want to create an account for this purpose to stop it affecting your other account balances. It might also help when it comes to reconciling your accounts.

      • This account will also be used when balancing your books in Task 5 "Account for the surcharge" below.

    • Click the Selling Details tab. and enter a Base Selling Price of 0.018. This represents 1.8%.

    • For the Tax Code When Sold, choose GST and select the option Prices are Tax Inclusive.

  4. Click Save.
    Here's our example item:

2. Create and send the invoice

You'll create and send invoices the same way you currently do (need a refresher?). If you want to include details of card surcharges on your invoice form template, learn how to include a “how to pay” section on your invoices.
Here’s our example:

Here's our example invoice:

You can email your invoices the same way you currently do.

3. Receive payment

When the customer pays the invoice by card, the details will automatically be entered into your company file for you, and the invoice will be closed off. But this won't include the surcharge amount which gets paid directly to MYOB (we'll send you a notification that a surcharge has been paid).

You'll also receive a notification that the customer has paid by card which means a surcharge has been paid.

Bulk payments

If a customer pays multiple invoices with a single card payment, you'll need to update each invoice to add the surcharge.

 

You’ll need to update the invoice to record the surcharge payment and send it to the customer for their records.

See the next task for instructions.

4a. Update the invoice (Item layout)

To be able to send the customer a copy of the invoice containing the surcharge, you'll need to manually update the invoice.

If the invoice contained inventory items (you used the Item Layout in AccountRight), here's what to do:

  1. Go to the Sales command centre and click Sales Register.

  2. Click the Closed Invoices tab.

  3. Click the zoom arrow to open the invoice.

  4. Add the surcharge item to the invoice.

    • Add the invoice amount in the Ship column.

    • Double check the Price is 0.018 so it calculates 1.8% of the invoice amount.

    Here's our example item invoice - notice the Balance Due is the surcharge amount which you can now record.

  5. Click Payment (at the bottom of the window) then click OK to the message about saving your changes.

  6. On the Receive Payments window, change the Date to match the payment.

  7. Record details of the surcharge payment and click Record.
    Here's our example:


     

    Which account should I use?

    It's up to you which account you choose in the Deposit to Account field. Because no payment is actually received (the surcharge goes directly to MYOB), you might want to create an accountfor this purpose. This might also help when it comes time to reconcile your accounts.

    If unsure, ask your accounting advisor or the experts on the community forum.

  8. Click Record. The payment is saved and the invoice reappears.
  9. Click Send To > Email to email the updated invoice to the customer for their records.

  10. (Optional) In the Email window, update the Subject and Message to describe that this is a replacement invoice for their records.

  11. Click Send.

Because you haven't actually received the surcharge payment (it went straight to MYOB), you'll need to record a spend money transaction to balance your books. See Task 5 below to learn how.

4b. Update the invoice (Service layout)

To be able to send the customer a copy of the invoice containing the surcharge, you'll need to manually update the invoice.

If the invoice didn't contain any inventory items (you used the Service Layout in AccountRight), here's what to do:

  1. Go to the Sales command centre and click Sales Register.

  2. Click the Closed Invoices tab.

  3. Click the zoom arrow to open the invoice.

  4. Add the surcharge to the invoice.

    1. Enter a Description for the surcharge.

    2. Select the applicable Account No. for the surcharge.
      • You might want to create an account for this purpose to stop it affecting your other account balances. It might also help you reconcile your accounts.

      • You'll also use this account when balancing your books in Task 5 "Account for the surcharge" below.

    3. Calculate the surcharge (1.8% of the total invoice value) and enter this in the Amount column. In our example below this is 455 X 0.18 = 8.19

    Here's our example invoice - notice the Balance Due is the surcharge amount which you can now record.

  5. Click Payment (at the bottom of the window) then click OK to the message about saving your changes.

  6. On the Receive Payments window, change the Date to match the payment.
  7. Record details of the surcharge payment and click Record.
    Here's our example:

    Which account should I use?

    It's up to you which account you choose in the Deposit to Account field. Because no payment is actually received (the surcharge goes directly to MYOB), you might want to create an account for this purpose. This might also help when it comes time to reconcile your accounts.

    If unsure, ask your accounting advisor or the experts on the community forum.

  8. Click Record. The payment is saved and the invoice reappears.
  9. Click Send To > Email to email the updated invoice to the customer for their records.

  10. (Optional) In the Email window, update the Subject and Message to describe that this is a replacement invoice for their records.

  11. Click Send.

5. Account for the surcharge

The last thing to do is create a spend money transaction to account for the surcharge. You're not actually paying anyone as the surcharge has already been paid by your customer, directly to MYOB. This transaction just balances your books.

Check the date!

Make sure the date of the Spend Money transaction matches the date of the original invoice. This ensures your BAS won't be affected.

If a customer paid multiple invoices with a single card payment, record one spend money transaction for the total surcharge amount (1.8% of the value of the paid invoices).

Here's our example - note the following:

  • we've selected MYOB as the supplier in the Card field as we already have this supplier set up for MYOB subscription payments. How do I add a supplier?
  • the date has been changed to match the payment date.

If unsure about the details of this transaction, check with your accounting advisor about what's best for you.

Which accounts should I use?

The Pay from Account field must be the same account you recorded the payment into in the previous task.

Similarly, the account used in the Acct No. field (at line level) must be the same account you chose as the Income Account for Tracking Sales (if you set up a surcharge item), or the account you chose at line level on service invoices (see Task 4b above).

If unsure, ask your accounting advisor or the experts on the community forum.

 

 

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