Common "Special Use" Payment Methods


The following are examples of other Payment Methods you may need. The name and the description can be whatever is meaningful to you. The important items are the Account Number (so it goes to the correct account) and the Type (so it behaves correctly).

Finance Charges (Late Fees) – This is used to credit off finance charges. The account number used should be the same one found in Company → System Setup → System Accounts: “Credit Account for Late Charges.”

EFT – This can be set up to go directly to the bank account receiving electronic transfers. If more than one bank account receives transfers a different method should be set up for each account.

Bad Debt – This payment method is used to write off bad debt.

Finance Company Fee – If the customer has financed their job through Wells Fargo, GE, etc., set up a credit payment method as shown below. The account used should be where you want the fee the company withheld to post to and the Type should be Credit.

When you receive the payment from the finance company, enter it as you normally would using check, EFT, etc., and enter the amount of the payment. Use the above Payment Method to credit off the fee the company charged.

Refund check to customer – When a customer has a credit on their account and you need to write a refund check, use this payment method to clear the credit amount. Then, from Banking → Write Checks write a check for the customer and code it to the account the payment method is hitting, in this example "1098".

Credit Card Refund to Customer – Even if you are processing credit cards through ESC, the actual refund is handled with your credit card processing company. The only thing that needs to be done in ESC is to show the refund on the customer’s account and show the money coming out of the bank.

If your credit card payments go into Undeposited Funds and the refund will be included with a batch, set the Payment method up as shown below.

If your credit card payments go directly into your checking account set the Payment Method up as follows:

Payments from Payroll – When an employee is also set up as a customer and has money withheld from their paycheck to pay off the bill, you would use this payment method to credit the payment to their customer account. Make sure the payroll deduction is set up to credit the same account number that is used in this payment method, in this example 1098. After processing checks run either the Payroll Item Report or the Payroll Liability Report for the correct date and item or account for a list of deductions that need to be recorded in AR. Use this payment method to credit off the amount of the deduction.

Vendor is also a customer - One of your customers is also a vendor. You do work for them and they tell you to take it off what you owe them.

Enter credit memo (negative invoice) in AP and use the AR Wash account as the credit account.

Tie the AP credit memo to existing invoice with a $0 check or leave it in the account to use when the balance of the invoice is paid.

Credit off the invoice in the customer’s account using this payment method.

AR Wash – This payment method can be used when writing a refund check to a customer, payments withheld from employees in payroll and crediting work done for a vendor against a payables bill or you can set up individual methods for each scenario as previously shown.

NSF Fee – The easiest way to enter an NSF Fee to a customer’s account is to use this payment method and enter the amount of the fee as a negative number which increases the amount due.

0 people found this helpful



Please sign in to leave a comment.