Because the ARC/BSP settlement process requires the form of payment to match the ticket, all sales issued using credit card as the form of payment need to be entered into TBO as such. When this happens, TBO closes the client balance immediately. It does not create a vendor balance for the net remit because it would cause the settlement to be out of balance.
There are two things that are necessary to account for ARC/BSP tickets paid by agency credit card:
- The amount due/collected from the client
- The charge to the agency’s credit card
There are two possible workarounds to help handle the accounting for these transactions. The method you choose depends on your agency’s reporting needs.
Using negative client vouchers
· The easier of the two methods
· Does not require additional supplier bookings
· Client must be willing to pay an invoice that is closed by credit card
Creating sale/refund bookings
· Allows agent to present an invoice with an open balance to client
· For tickets the agency has marked up, will keep the original ticket amount from showing on client invoice
· Requires more steps
· There will be three bookings for each ticket issued
Method 1: Using Negative Client Voucher
This method is the simpler of the two, but does not create an invoice to account for the client’s balance/payment. A negative client voucher is used to create a client balance and to transfer the liability to the Payment on Agency CC ledger account.
The steps for this method:
- Create sales invoice for ARC/BSP document(s)
- Create a negative client voucher by entering a Payment | Made
- Create a Payment | Received from the client to close the voucher
Step 1: Create a sales invoice for ARC/BSP document(s)
This step is usually performed in the GDS but may be entered manually in TBO or via ClientBase. The agent generates an ARC/BSP booking with a credit card payment using the agency’s credit card number. This will close the client balance and create an open ARC/BSP booking.
Step 2: Create a negative client voucher
Step one handles the accounting for ARC/BSP settlement but neither creates a client balance nor a credit to the Payment on Agency CC ledger account. Creating a negative voucher allows for accounting for both items.
Enter a Payment | Made to the client’s profile, using payment method Other. We recommend documenting the payment using the Remarks field to help reconcile the agency credit card account later.
Since there will be an unapplied balance, click on Create Voucher. You can leave the voucher information at the defaults and click OK to continue.
When prompted to create a journal entry, credit the Vendor Payment on Agency CC wash account. Include a description in the Remarks field.
Note that this will create an entry on the Client Balances report.
Step 3: Enter client payment
To record the client’s payment made to the agency and clear the client balance, enter a Payment | Received for the money paid by the client. Use the payment method used by the client (cash, check, CC merchant or EFT/ACH).
Apply the payment to the open voucher created in the previous step.
Method 2: Creating Refund/Sale Supplier Bookings
This method requires the agency to create both a refund and a sale supplier booking for the ARC/BSP documents. The supplier bookings invoice can be created In the GDS or by the TBO user.
Step 1: Generate ARC/BSP booking
Create a sales invoice for the ARC/BSP booking. The invoice is closed to Credit Card using the agency’s credit card number.
Step 2: Create refund invoice with supplier booking
Query for the invoice created in step 1, and click on Refund to create a refund invoice.
Change the Submit To field to Supplier. You may also wish to enter the ticket number in the Confirmation Number field. Click OK to save the booking, and repeat for any other ARC/BSP bookings. Click OK to save the invoice. Do not apply payment.