How to Record a Dine-In Credit Card Sale Net of POS Processing Fees
Recording a table payment by card, separating the bank processing fee from food revenue and VAT.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank (Net) | Asset (+) | 113.08 | - |
| Bank Processing Fees | Expense (+) | 2.92 | - |
| Food Sales Revenue | Revenue (+) | - | 100.00 |
| Sales Tax Payable (VAT Output 16%) | Liability (+) | - | 16.00 |
💡 Accountant's Note
Always record the full sale price as revenue. The bank processing fee (typically 2.5%) is a separate selling expense, not a reduction of revenue.
Practitioner & Systems Framework
💻 ERP Architecture
The POS system captures the gross card charge (JOD 116). The bank settles the net amount after deducting the merchant service charge (typically 2.5%). Record gross revenue and the fee separately — never record only the net deposit as revenue. Reconcile card settlements daily using the bank's merchant settlement report, matching each POS transaction to the bank deposit batch.
⚠️ Audit Flags
Netting processing fees against revenue understates both revenue and expenses — auditors will flag this as a misstatement. For VAT purposes, the full pre-tax amount (JOD 100) is the taxable supply — the bank fee does not reduce the VAT base. Check that the merchant fee rate matches the bank agreement and that rates haven't changed without updating the GL mapping.
📄 Required Documentation
POS transaction report, bank merchant settlement report, Bank Processing Fees ledger reconciliation to bank statements, and signed merchant agreement confirming the processing fee rate.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.