If you have an active Square Capital loan, Square withholds a repayment from your card sales before the payout reaches your bank. This means the day's gross sales and the amount that lands in your account will not agree, and the difference is not a processing fee.
A repayment is principal coming off a liability. Recording it as a fee understates both your revenue and your outstanding loan balance, and the two errors compound every day the loan is open. Shogo parses the repayment out of the payout and posts it against the liability account you designate, so gross sales still post at gross, the loan balance reduces as it should, and the deposit reconciles to the bank without a plug.
Where to see the repayment in Square
Account & Settings > Business > Transfers
Scroll to the Sales Transfer Report and choose the date. Repayments appear as an amount withheld from the transfer, separately from processing fees and from Batch Adjustments.
Where to map it in Shogo
app.shogo.io > Settings > Accounting > Other Charges
Map the Square Capital repayment to the liability account you use for the loan. If you have not set that account up yet, see below.
Recording the initial disbursement
Shogo posts the daily repayments. The initial loan disbursement is a one-time entry you record yourself when the funds arrive — Shogo does not post it, because the disbursement does not come through your sales data.
The common treatment is:
- At disbursement, record a liability for the total amount owed — the funds you received plus the fixed fee. Offset the fee portion to an expense or prepaid expense account, depending on how you want it recognized.
- Each day thereafter, the repayment withheld from your payout debits that liability.
Because the repayment is reported as a single withheld amount rather than split between principal and fee, the full daily amount goes against the liability. There is nothing to allocate day by day: the fee was already recognized at disbursement, so splitting the daily repayment would double-count it.
When the liability reaches zero, the loan is repaid and the account should clear on its own.
If the numbers do not reconcile
If your Square Capital liability account is not trending to zero, or a day's payout still does not tie, the usual causes are:
- The repayment is mapped to a fee or expense account instead of the loan liability.
- The initial disbursement was recorded at the funded amount rather than the total amount owed, so the liability is short by the fixed fee.
- A second loan was taken before the first was fully repaid, and both are mapping to the same account.