iClassPro Support

Reconciling Using a Clearing Account

Overview

iClassPro is designed to capture transactions related to customer's billing and payments. This includes payments of cash, check, eCheck and credit card transactions. It does not directly interface with the Merchant Services website (aka “Merchant Portal”) where eCheck and credit card settlements are processed, reduced by processing fees and sent to your bank.

eCheck and credit card amounts that show on the daily iClassPro daily reports do not always match the amounts deposited in your bank due to settlement timeframes, processing fees, and chargebacks that occur through the Merchant Portal.

To better track and reconcile these transactions, iClassPro suggests that our clients use a clearing account in their accounting software to post eCheck and credit card transactions. Included below are detailed instructions for posting these transactions.

Note: The instructions below are for QuickBooks and may vary for different accounting software.

Contents

  1. Overview
  2. Set Up a Clearing Account
    1. How to Set Up In Quickbooks
  3. Using a Clearing Account:
    1. Collect Daily Reports.
    2. Record iClassPro Report into QuickBooks.
    3. Enter the Merchant Portal Transfer Details into QuickBooks.

Set Up a Clearing Account

Clearing Account is an account that you use to move money from one account to another account when you cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in. It may also be called a Barter or Wash Account.

How to Set Up in QuickBooks:

  1. From the Lists menu, click Chart of Accounts.
  2. Right click anywhere in the Chart of Accounts then select New.
  3. In the Add New Account window, click the Bank radio button. Note that while you can choose from several types of accounts, the best is a bank account because of the following reasons:
    • You can pay into a bank account via Receive Payments or Make Deposits.
    • You can pay out of a bank account via Write Checks or Pay Bills.
    • A bank account appears on the balance sheet and on the statement of cash flows to balances and changes in balances.
    • To allocate expenses to overhead or class using a zero check, you must use a bank account as your Clearing account.
  4. Click Continue.
  5. In the Account Name field, enter Clearing AccountBarter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Click Save & Close.

Using a Clearing Account 

Collect Daily Reports 

From iClassPro

  1. Click on “Reports" at the top of the page
  2. Click on “Financials” on the left-side of the page
  3. Click on the action icon for “FIN-4 > Program Deposit Slip Report”
  4. Put in the dates
  5. Make sure all payment types are checked
  6. Make sure to check “Show Payment and Adjustment Details”
    1. Create PDF
    2. Print

From the Merchant Portal

  1. Log in at https://merchantportal.iclasspro.com
    1. It should be the email address and password used when completing the merchant application. You can use the forgot password option or contact support if you need help logging in.
  2. Once logged in, click on ‘Transfers’ located on the menu at the top of the page
  3. Click date needed then print

Record iClassPro Report into QuickBooks

  1. Open QuickBooks
    1. Click on ‘Company’
    2. Click on ‘Make General Journal Entries’
    3. In ‘Date’ put in date of the report you pulled (may default to today’s date)
  2. LISTING DEBITS (Money you received)
    1. Account – Cash and checks are posted directly to the bank and should equal the amount of the daily deposit. Credit cards and eCheck transactions are posted as a debit to Merchant Services Clearing.
  3. LISTING CREDITS (where the money went to)
    1. Account - List different places you received income from, like program fees, class fees, selling t-shirts, etc.
    2. Credit amount - total amount you received from Program Fees, for example
  4. The Debits and Credits should be in balance 

(Click screenshot for a larger view.)
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Enter the Merchant Portal Transfer Details into QuickBooks

  1. Open Quick Books
  2. Click on ‘Company’ (located in top menu bar - will be a drop down menu)
  3. Click on ‘Make General Journal Entries’
  4. In ‘Date’ put in date of the report you pulled (may default to today’s date)
    1. Net Amount: List the account the funds will be deposited into in ‘Account’ > put amount in debit
    2. Fees: Credit Card Fees in ‘Account’ > put amount in debit
    3. Gross Amount: Merchant Clearing in ‘Account’ > this should go in credit column and be a total of what goes into your account plus the fees.

(Click screenshot for a larger view.)
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Need More Assistance?

Call us at 877-554-6776. Our business hours are Mon-Fri 9am-6pm Central Standard Time.