How will this change impact me as a supplier?
All payments received from Marmalade will now be paid net of any fees owing related to that transaction. For example if you cash in an invoice, the amount that will be paid into your bank account will be the invoice amount selected for cash in, less the cash in fee.
If we receive a customer payment on an invoice which has not been cashed in, the amount remitted to your bank account will be the total customer payment received less the transaction processing fee.
How will I reconcile this nett settlement in my Xero Accounts?
Marmalade have done the hard work for you. You will follow the same process as you do currently to reconcile the payment in the bank account section of Xero. The rest has been taken care of by us.
You will however notice a few new entries in your accounts as detailed below.
Firstly, Marmalade will create an additional General Ledger account in your chart of accounts called the “Marmalade Clearing Account”. This account will be used for us to reconcile the nett settlement automatically for you when each payment is processed.
Secondly, the invoice will continue to be marked as paid by us, however you will now see that the invoice will be settled with two payments. One being the cash amount received into your bank account (for the net amount remitted in cash) and the other being to the Marmalade Clearing account (for the fee amount we have deducted).
Lastly, in the Bills section you will notice we have created a bill for the fee charged on each transaction. This fee will still be posted to the original fee account that you selected during onboarding as with the current process. The fee will be posted with the correct GST classification, which is GST Free for a cash in fee and GST on expenses for a transaction fee.
The bill is automatically settled to the Marmalade Clearing Account, which will net the clearing account to nil.
What happens if my Marmalade Clearing Account is not Nil?
Please contact us and we will work as fast as possible to rectify this for you.
Does this change impact my customers?
No, there are no changes for your customers.