Handling fees and credit memos in PSP imports

A file from a payment service provider (PSP) contains more than customer payments. A single order can include the payment amount, transaction fees, commissions, and refunds. Continia Banking uses three sets of rules on the PSP agreement to decide how each amount in the file is imported to the cash receipt journal:

• PSP search rules identify fees and charges and assign them to an account. For more information, see Setting up PSP search rules.
• The Merge Transaction Type field combines fee lines to reduce the number of journal lines.
• Credit memo identification rules separate refunds from payments, so that credit memos can be matched correctly. For more information, see Setting up credit memo identification rules.

How Continia Banking processes the amounts in a PSP file

A line in a PSP file usually represents one transaction, for example, an order, and can contain several amounts. Continia Banking stores each amount as a PSP detail with a description:

• The description is taken from the Alternative Posting Description column of the CSV port.
• If the CSV port has First Line Is Header Line selected and the amounts are in several columns, the description of each detail is the header of its amount column instead, for example, Fee.

When you import the file to the cash receipt journal, Continia Banking processes the details of each line as follows:

1. If the description of the detail matches an enabled PSP search rule, Continia Banking creates a fee line on the account of the rule.
2. If no search rule matches, Continia Banking adds the amount to a customer line. If the description matches a credit memo identification rule, the amount goes to a separate credit memo line. Otherwise, the amount goes to the invoice line.

Continia Banking creates one invoice line and one credit memo line for each combination of file line and posting date. If the combined amounts add up to zero, Continia Banking creates one line for the positive amounts and one line for the negative amounts instead, because it doesn't create journal lines with a zero amount.

For example, a PSP file contains the following amounts for order 1001, shown after Continia Banking applies the amount format rules of the CSV port:

The PSP agreement has a search rule with the search text Fee that points to G/L account 6900, and a credit memo identification rule with the search text Refund. Continia Banking creates the following lines for order 1001:

• A customer line with the amount -100.00 for the payment, which is matched with the invoice.
• A G/L account line with the amount 2.50 on account 6900 for the fee. The line gets the status PSP Agreement Rule Matched.
• A customer line with the amount 20.00 for the refund, which is matched with the credit memo.

How search rules are used

Continia Banking checks the enabled rules in the order of the list and uses the first rule that matches. For more information about the rules and how to set them up, see Setting up PSP search rules.

• When you import the PSP file, Continia Banking compares the description of each PSP detail with the rules that have Search In set to Description. A matching detail becomes a fee line on the account of the rule.
• When you select Apply Imported Payments, Continia Banking also uses the rules for customer lines that couldn't be matched with a document and have no account number. Continia Banking compares the description of the journal line with the rules that have Search In set to Description, and the additional texts of the line with the rules that have Search In set to Additional Text. This lets you assign an account to recurring lines that don't have an external payment reference.

A line that is created or matched by a rule gets the combined dimensions of the rule, the PSP agreement, and the PSP file.

To merge fee lines

By default, Continia Banking creates one journal line for each fee in the PSP file. If a file contains many small fees, you can reduce the number of lines with the Merge Transaction Type field on the PSP agreement.

To set the merge type:

1. Search for and select PSP Agreements.

2. Select the agreement, and then on the action bar, select Related > PSP Reconciliation Setup.

3. In the Merge Transaction Type field, select one of the following options:

   Option	Description
   No Merging	Creates one journal line for each fee in the file.
   Per Reference	Merges the fees that belong to the same reference, that is, the same line in the PSP file, and that match the same search rule. For example, if one order has several details with the description Fee, they become one journal line.
   Per Day	Merges the fees that have the same posting date and match the same search rule, regardless of the reference.
   Per Transaction Type	Merges all fees that match the same search rule, regardless of the posting date and the reference.
   Per G/L Account	Merges all fees that are posted to the same account, regardless of the search rule, the posting date, and the reference.

With all merge types, Continia Banking merges fees only if they have the same account and the same currency. The merged line keeps the description and the document number of the first fee. The individual fees are shown in the Additional Texts FactBox of the journal line.

How credit memo identification rules are used

If the PSP file contains payments and refunds for the same reference, Continia Banking combines the amounts into one customer line by default. The result can be a line that doesn't match any invoice or credit memo. Credit memo identification rules keep refunds apart from payments, so that each line is matched with the right document.

Continia Banking applies the credit memo identification rules to the amounts that don't match a PSP search rule. Amounts that match a rule are combined into a separate credit memo line. All other amounts are combined into the invoice line. For more information about how to set up the rules, see Setting up credit memo identification rules.