When you connect your accounting platform to Marmalade two new general ledger accounts will be created in your accounting platform:
- The Marmalade Clearing Account
- The Make Good Account
When you cash-in an invoice the invoices Marmalade pays the full value of the invoice less a one-off fee which means the invoice has been paid by Marmalade. These accounts are used by Marmalade to ensure the complexity created by the invoice being paid at time of cash-in, the payment being net of fees and the customer still needing to pay the invoice is automatically managed by our system.
Why are there two separate Accounts:
The two separate general ledger accounts are in place to manage two separate processes:
The Marmalade Clearing Account:
- Is used to apply the necessary journals to enable cashed-in invoices to be paid net of fees
- It is also used to apply the necessary journals to reconcile the Credit Card fees in the event that these are paid by yourself rather than on-charged to your customers
The Make Good Account:
- Is used when an invoice needs to be repaid to Marmalade as a result of it no longer being in accordance with our supplier agreement
What happens if my Marmalade Clearing Account or the Make Good Account is not Nil?
Refer to our detailed article on Reconciling the General Ledger Accounts.
Do I need to notify my Bookkeeper or Accountant?
Yes, you should definitely notify your Bookkeeper or Accountant to ensure that they understand why these accounts exist.
Your Bookkeeper or Accountant should be advised not to remove these accounts or remove payments on cashed-in invoices as this will create reconciliation errors in your accounting platform.
Does this change impact my customers?
No, there are no changes for your customers.
Is there more information on the journal entries created by Marmalade?
Yes, Refer to our detailed article on Reconciling the General Ledger Accounts.