A payment entry is a document recording a payment made against a party.
The deductions or loss table allows us to register any type of fees associated to a payment.
A purchase invoice of $40 has been posted for an amount of 36€ in the company currency.
The payment, several days later, is from 37€.
In the payment entry, the amount paid will be of 37€, the amount allocated to the invoice of 36€ and in the deduction table we add the following line:
Account: Foreign exchange loss
A sales invoice of 1000€ has been paid via GoCardlees, the amount really received is therefore 998€.
The amount paid in the payment entry is therefore 998€.
The amount allocated to the invoice is 1000€.
In the deduction table, we add the following line:
Account: GoCardless fees