I have to manage different PSPs (CC payment processing companies) for an online business.
The typical journal entry is like this (ex month Dec 2019)
- PSP 1 : debit 1700 (asset)
- PSP 1 rolling reserve: debit 200 (asset)
- PSP fees expenses : debit 100 (expense)
- Players funds: credit 2000 (liability)
The PSP1 settles funds on a weekly basis, keeping 10% of users deposits in reserve during 6 months and deduce their interest fee from settlements
The funds from users are a liability, these are not sales but deposits from users that they can retrieve at any moment.
PSP 1 assets account can be in different currencies (USD, AED, RUB) than my company’s currency (EUR) and i want to keep track of these assets in original currency
User funds are in USD
What type of account shall I use for the PSP1 and PSP1 rolling reserve account? I started to think that a bank account unticking “is company account” could be an option .
Again, these PSPs are not really banks neither Clients… What would be your recommandation to help me keeping my PSPs reconciliation easy and efficient?