Payment Methods

Use Payment Methods to identify the types of payments that you receive from customers.

HINT-- Payment Methods help you to handle accounts receivable in the Goldenseal accounting software.

PAYMENT METHOD BASICS
Entering Payment Methods | Data Fields | Payment Types | Variable Terms
Using Lists | Using Payment Methods

WEBSITE INFO LINKS
Accounting Software | Accounts Receivable Software | Billing Software | Point of Sale Software

Entering Payment Methods

To enter a Payment Method, follow these steps:

Choose Income Setup from the Income menu, then choose Payment Methods from the submenu.
Click the New button, or click on an existing item and click the Edit button.
Enter details for the payment method.

Data Fields

Enter the following information for each Payment Method:
Name-- Type in a brief name for this payment method. This is the text that will appear in clairvoyant fields.
Comments-- Type in any comments you'd like to make about this item.
Type-- Enter the type of payment method.
Discount-- If you give a discount on sales that are paid with this payment method, enter it here.
NOTE-- For early payment discounts on billed sales, use Customer Payment Terms. For discounts you give to just some customers, use Customer Discounts.
Income Value-- If the payment type is Foreign, enter the exchange rate value that you offer on sales. If the payment type is Freebie or Redeemable, enter the redemption value of one item. Other payment types do not use this field.
Deposit Value-- If the payment type is Foreign, enter the exchange rate that is given to you when you deposit the currency. If the payment type is Redeemable, enter the redemption value that you receive. Other payment types do not use this field.
Allow Variable Terms-- If the payment type is Billing, turn on the checkbox if each sales transaction can have its own payment terms. Turn the checkbox off if all sales use the same payment terms. Other payment types do not use this field.
Use Customer Terms-- If the payment type is Billing, turn on the checkbox if the customer's usual payment terms are used for sales. Turn off the checkbox if all sales that use this method use the same payment terms. Other payment types do not use this field.
Usual Terms-- If the payment type is Billing, and the Use Customer Terms box is not checked, this field becomes active. Enter the customer payment terms that are used. Otherwise, this field is not used.
Currency Values-- For foreign currencies, enter the currency values that you give to customers, and that the bank gives to you when you deposit the currency.
Transaction Fee-- If you pay a transaction fee for payments of this type, choose whether the fee is a fixed dollar amount or a percentage, and enter the amount of the fee.
Pay Fee To-- If you pay a transaction fee for payments of this type, enter the type of account to which you make payments.
Account-- Enter the specific account to which you pay transaction fees.

Payment Types

Payment Types are used to group deposits. They also identify some special payment methods that receive special treatment.

Most payment methods will be one of four basic types:

Billing-- for sales or purchases made on credit. When Billing is selected, the customer's or vendor's usual payment terms will be used. If the payment terms are "cash only", Billing will not be available as a choice.
Cash-- for coins and paper money from the country where you're located.
Check-- for checks, money orders, traveler's checks and other items that are fully negotiable.
Credit Card-- for Visa, Mastercard, American Express and other credit cards where you'll receive payment from an outside agency.

There are also some special types of non-standard payment methods, often used to pay for just part of a sale:

Barter-- for payments made by an exchange of goods or services.
Credit Memo-- for redeemable credit memos that you issue instead of cash refunds.
Foreign-- for coins, paper money and other negotiable items from another country. Also use this option for redeemable tokens or local currencies that can be used for general trade.
NOTE-- Consider checks, money orders or traveler's checks as foreign only if their denomination is in a foreign currency.
Freebie-- for discount coupons, passes, "wooden nickels" and other items that entitle the purchaser to a reduced price, and that have no actual cash value after they are used. This choice can also be used for gift certificates if you don't plan to track their quantities.
NOTE-- If you want to track quantities of gift certificates or specific freebies, enter them as Cost Items.
Redeemable-- for manufacturer coupons and other items that entitle the purchaser to a reduced price, and that you can redeem for payment later. Use a separate Payment Method for each source that pays you to redeem coupons.
Write-Off-- for forgiven debts or price reductions, that will be charged to an overhead account. Write-offs can be used for bad debts, and for discounts or free items given for marketing reasons. For write-offs, you'll use the Fees section to allocate costs to overhead accounts.
NOTE-- If you receive payment in the form of tangible goods or services, use a barter transaction instead.

Using Variable Terms

You probably always use the same payment terms for each customer or for each payment method. If that is the case, turn off the Allow Variable Terms checkbox. Each Sales transaction or Billing Record will get payment terms from the Payment Method or the Customer account (depending on the status of the Use Customer Terms checkbox).

Turn on the Allow Variable Terms checkbox if you want to change the payment terms in each Sales transaction or Billing Record .

Using Payment Methods

Assign payment methods in each Sales transaction.

You also use payment methods in Payment Receipts, in the Deposit Funds command, and in Bank Deposits that have a payment breakdown.