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How do I record activity from my wire statement to my accounting records?

Book Keeping: 

 If the shop doesn’t have a POS / Order Entry System, then you must input in as a journal entry.  

Basic Entry:  

Keep a record of incoming sales and outgoing sales that are from a wire service. 

  

The order value is $100. 

 

            Account                                      Debit                                    Credit 

Incoming Wire Sale:                                                                           $100.00 

Incoming Commission (20%):             $20.00 

Clearing House Exp (7%):                    $7.00 

Due from/ to Wire Service:                 $73.00 

$100 in debits and $100 in credits (we balance) 

Outgoing Wire Commission (20%):                                                 $20.00 

Due to Wire Service:                                                                          $80.00 

Cash (Customer Payment):                 $100.00 

This could be a credit card or a house charge (bill customer). There is $100 in debits and $100 credits (we balance).  

 

If you have a POS / Order Entry System that records the sales and posts for you, you still have to record Membership Fee, Technology Charges, Supplementary Services & Fees, Directory, Advertising, Product Purchases and Rebates.  

NOTE: POS / Order Entry Systems understand 20% of the incoming expenses and outgoing commissions. They don’t know how to calculate clearing house expenses. Clearing house expenses start at 7% and can reach 10% depending where the order came from.  

 

Example: The recording sheet below can be used to record the wire service statements.  

 

ABC Florist 

 

 

 

 

 

Wire Statement Journal Entry for October 2018 

 

 

 

 

 

 

 

 

 

 

Acct # 

Account 

Debit 

Credit 

 

 

Expenses  

Clearing House Exp (7%) 

$35.00  

 

 

 

Expenses  

Membership Fee 

$59.95  

 

 

 

Expenses  

Technology 

$50.00  

 

 

 

Expenses  

Supplementary Service & Fees 

$25.00  

 

 

 

Expenses  

Directory & Advertising 

$100.00  

 

 

 

Expenses  

Products  

$250.00  

 

 

 

Income 

Rebates 

 

$50.00  

 

 

Assets/Liability 

Due to Wire Service 

 

$469.95  

 

 

 

 

$519.95  

$519.95  

 

 

Other Expenses  

 

 

 

 

 

 

Credit Card Processing Exp 

 

 

 

 

 

Education/Trip/Convention  

 

 

 

 

 

 

 

 

 

 

If you don't have a POS/Entry system, you also need these entries. 

 

 

 

 

 

Acct # 

Account 

Debit 

Credit 

 

 

Income  

Incoming Sales Growth 

 

$500.00  

 

 

Expense 

Incoming Discount (20%) 

$100.00  

 

 

 

Income  

Outgoing Sales Commision 

 

$60.00  

Outgoing Sales 

$300.00  

Asset 

Cash 

$100.00  

 

 

 

Asset 

House Charge 

$100.00  

 

 

 

Asset 

Credit Card   

$100.00  

 

 

 

Asset/Liability 

Due to Wire Service 

$160.00  

 

 

 

 

 

$560.00  

$560.00