PROCESSING CREDIT CARD DEPOSITS
MERCHANT & DEPARTMENTAL USERS
Credit card deposits are sent electronically to the bank directly by
each merchant department. All credit card deposit data are entered
into FMS by Financial Services from information received directly
from the bank.
Each day, Financial Services will credit a clearing account for
transactions recorded by the bank for each merchant, using the
Fund, Dept ID and PG provided by the department. Each
department will receive, by e-mail, an Excel copy of the banking
transactions (referred to as the Deposit Detail Worksheet).
Departments will be responsible for preparing a journal entry to
distribute the revenues and taxes payable out of their clearing
account. Financial Services will charge interest and service charges
directly to the appropriate revenue or expense accounts.
Departments must ensure that their credit card clearing accounts
balances are cleared regularly and reconciled monthly. These
accounts must be zero at year end.
CREDIT CARD CLEARING – DAILY PROCEDURES
Verifying Deposit Detail Worksheet
1. Receive your e-mailed copy of the Deposit Detail Worksheet
2. Match each deposit amount with
a. transaction tape total (if electronic card swipe is
b. deposit slip (if manual deposit slip is prepared)
Clearing Deposit Transactions
3. Prepare a journal entry to transfer the deposits and returned
items from your clearing account (based on the tape totals in
#2) to the appropriate revenue or tax remittance chart fields.
Refer to Processing Journal Vouchers procedures. Prepare
these JV’s daily, to ensure departmental reports are
accurate and that taxes collected are properly transferred to
central accounts for remittance to government authorities.
Clearing account numbers are:
Visa - CIBC 241100
Visa - TD 241200
Visa - Royal Bank 241300
MasterCard-First Data 241600
4. Distribute revenues and taxes payable to the appropriate
account, Dept ID, funds and PG’s. The following speed
charts/type can be used to distribute taxes:
Hotel Tax HTLTAX
Liquor Tax PST
3. Follow-up discrepancies between the amounts you have
cleared and the amounts recorded on your Deposit Detail
Worksheet with the appropriate bank.
ANALYSING CREDIT CARD DEPOSITS – MONTHLY PROCEDURES
At the end of each month,
1. Prepare an analysis of your clearing account.
2. Forward a copy to Financial Services – Revenue Accounting.
At year end, ensure that the clearing accounts are cleared to zero.