The consumer payment account of the merchant to be cleared is the process in which the merchant temporarily deposits the consumer's payment in an account to be cleared through the interbank clearing system of the bank or payment institution when making electronic payment, and waits for settlement and liquidation. In this process, merchants need to make accounting entries for these funds to be liquidated. The following will elaborate on the accounting entry treatment method for the consumer account of the merchant to be liquidated.
1. Accounting entries at the time of collection
When the merchant receives the payment from the consumer, the fund should be credited to the account of the "Merchant Consumer Account to be Liquidated". The accounting entries at this point are:
Debit: bank deposit account (or third-party payment platform account) xxx yuan.
Credit: xxx yuan for the consumption account of the joint merchant to be liquidated.
2. Accounting treatment for the period to be liquidated
Interest income: If a bank or payment institution provides interest income to a merchant during the period pending liquidation, the merchant should credit the interest income to the revenue account. The accounting entries at this point are:
Borrow: xxx yuan for the consumption account of the joint merchant to be liquidated.
Credit: Interest income account xxx yuan.
Fee payouts: Merchants may be required to pay fees to banks or payment institutions while they are pending liquidation. At this point, the merchant should credit the fee payout to the fee account. The accounting entries at this point are:
Debit: Fee Expenditure Account xxx yuan.
Credit: xxx yuan for the consumption account of the joint merchant to be liquidated.
3. Accounting treatment at the time of settlement
Successful settlement: When the bank or payment institution completes the settlement and transfers the funds to the merchant's settlement account, the merchant shall settle the corresponding funds in the account of the "Merchant Consumption Account to be Liquidated". The accounting entries at this point are:
Borrow: xxx yuan for the consumption account of the joint merchant to be liquidated.
Credit: Bank deposit account (or third-party payment platform account) xxx yuan.
Settlement failure: If the bank or payment institution is unable to complete the settlement and transfer the funds to the merchant's settlement account due to some reason, the merchant shall return the corresponding funds in the account of the "Merchant Accounts to be Liquidated". The accounting entries at this point are:
Debit: bank deposit account (or third-party payment platform account) xxx yuan.
Credit: xxx yuan for the consumption account of the joint merchant to be liquidated.
Fourth, the treatment of risk reserves
In order to protect the rights and interests of consumers, banks or payment institutions usually require merchants to pay a certain percentage of risk reserves. The risk reserve is the money that the merchant pays in advance to deal with possible risks. This part of the funds should also be processed as accounting entries. Here's how to deal with it:
Pay the risk reserve: When the merchant pays the risk reserve according to the requirements of the bank or payment institution, this part of the funds should be credited to the "risk reserve" account. The accounting entries at this point are:
Debit: Risk reserve account xxx yuan.
Credit: Bank deposit account (or third-party payment platform account) xxx yuan.
Risk Reserve Refund: If the merchant's risk reserve does not have a risk event within a certain period of time, the bank or payment institution will return this part of the funds to the merchant. At this point, the merchant should credit the returned risk reserve to the revenue account. The accounting entries at this point are:
Debit: bank deposit account (or third-party payment platform account) xxx yuan.
Credit: Risk reserve is refunded to the income account xxx yuan.