Dedicated Fee Ledger

Adding a dedicated fee ledger splits your ledgers into two; a Settlements, Refunds, and Chargebacks Ledger (Settlement Ledger) and a Fees Ledger (Fee Ledger). Fees include transactional and account fees.

This action is not reversible and, once activated, fees will start writing out to this new ledger immediately. These ledger entries cannot be brought back into the Settlement ledger at a later date.

How to create a Fee Ledger 

To create a fee ledger click on account, settlements & ledgers, fee ledger, select a bank account or click new bank account, enter the new bank account details, click send SMS code, enter SMS code, click create, then click on choose the bank account to use for Fee Ledger, select the bank account you created and click enable Fee Ledger.

Drawing Schedule

The Fee Ledger will be restored to a $0 balance by drawing from the account assigned to it. This account should be different to the account used in the Settlement Ledger, otherwise this action serves no real purpose.

Drawings from the account assigned to the Fee ledger will occur according to your invoicing schedule, in the normal course of action. If required, Pay Advantage may transfer funds from your Settlement Ledger to cover any outstanding balance in the Fee Ledger.

Trust Accounting

The Fee Ledger is typically required if you run a form of Trust Accounting. Special care needs to be taken when on-charging fees and issuing refunds. If a payment has settled to your Settlement Ledger, then you refund it, you must ensure you only refund the amount excluding on-charged fees. If you refund the full amount then the on-charged fee amount associated with that payment will be deducted from your Settlement Ledger and may cause you reconciliation issues. You may find it easier not to on-charge fees and recover these costs some other way.