Payments/Tenders Mapping Approaches:
1). Map directly to a bank account
Pros: Allows you to have a direct audit trail and matching function of the expected deposit to the actual deposit.
Cons: If there is not an exact match between the expected deposit and the actual deposit, you will need to manually resolve the difference. You are also temporarily overstating your bank account balance which could lead to bank overdrafts if you are relying on the reported balance when paying any bills or planning for any banking direct debits.
2). Map to an Undeposited Funds account
Pros: Allows you to have a direct audit trail and matching function to the actual deposit. Addresses the timing difference discussed in Method 1.
Cons: If there is not an exact match between the expected deposit and the actual deposit, you will need to manually resolve the difference. In the case where your merchant services processor nets their fee from the deposit, the matching function may not work and it is cumbersome to resolve these scenarios. Use the Toggle All Credit function if your POS is your merchant services processor and nets their fee from their deposit.
3). Map to an Other Current Asset Clearing Account such as "Due from Merchant Services"
Pros: The closest approach to a "set it and forget it" workflow. Expected deposits are booked by Shogo into the clearing account as they are recorded in your Point of Sale and Actual deposits are cleared out of the clearing account when the actual deposit reported on your bank statement is processed. This approach also allows you to precisely gauge the amount of money you will have coming into the bank in the near term from your processor.
Cons: You are shifting the audit trail process from a transaction based process to a balance based process. This can be a pro and con - the pro being that you only need to look deeper into your transactions whenever the balance veers from its expected amount; the con being that it could take you longer to find and resolve if you have not verified your account balance for some time. For reference, the "expected" balance in this account should always equal your most recent credit card sales for which you have not yet been paid.
Your Point of Sale Provider may or may not provide their fees to Shogo. Please also note that Third Party Partners like Door Dash, UberEats, GrubHub, etc may be netting their fees to your Point of Sale Partner. See the article below for guidance on fees below:
Credit Card Processor and Third Party Payment Fee Information in Shogo
Check out our Knowledge Base for specific questions on your POS: