Merchant Account (Credit Card) Processing


 

Crediting and Debiting Accounts

Overview

If a Credit is issued in CivicRec, we would debit the money out of a Revenue Account (which nets that revenue account at $0 between the purchase and the credit) and credit those funds to a Liability Account. Then, if that credit gets used, the money gets debited out of the Liability Account (which nets the Liability Account at $0) and credited towards a new Revenue Account.

Example

Entries for a hypothetical sequence involving $100:

  • Original Purchase
  • Debit Cash $100
  • Credit Original Revenue Account $100
  • Credit
  • Debit Original Revenue Account $100
    • Note: Original Revenue Net is back to $0.
  • Credit "Account Credit" Liability Account $100
  • New Purchase
  • Debit "Account Credit" Liability Account $100
    • Note: Liability Account is back to $0.
  • Credit New Revenue Account $100
  • Changes on each account after all of this is:
    • Cash: $100
    • Original Revenue: $0
    • Account Credit: $0
    • New Revenue: $100
    • Note: No double revenue recording.



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