A company has listed Online Payment Banks such as PayTM on their
Mode of Payment. Now I wish to setup Account heads for them. Please note I’m not trying to setup integration with any of the pay banks.
What structure should I follow ? I wish to setup a common account for all cases in case multiple Payment banks are added in the Mode of Payment.
Can this Mode be considered as Bank type and let these payments go to company’s default bank account ?
Ideally you should have separate mode of payments for every account and separate accounts for all payment banks/gateways. Eg, Mode of Payment - Paytm can be linked to PayTM account in COA and Mode of Payment - Razorpay can be linked to a Razorpay Account. This will help you while recording invoices from each online payment provider.
You could go ahead with the method you mentioned but then you will have to keep a track separately of each account balances and pay off the paytm/razorpay invoices from default bank account.
Thanks for the reply.
I was thinking if a structure like this would be okay:
I will link each one of the accounts to the relevant Mode of Payment, also this arrangement will make sure that we can add more Payments Bank to this tree and not club all of them into a single account head.
Now my doubt is:
You’ve done it correctly. The account type would be bank and yes it would come under current assets group.