How to Enable Credit Card Settlement in Sage BusinessWorks

Enabling Credit Card Settlement in Sage BusinessWorks

Reconciling credit card payments can be one of the more time‑consuming parts of month‑end close. Sage BusinessWorks includes a Credit Card Settlement feature that helps simplify this process by allowing credit card transactions to flow through a holding account before being deposited into your bank account.

Why Use Credit Card Settlement in Sage BusinessWorks?

The credit card settlement process allows you to:

• Track credit card payments separately before they hit your bank account
• Easily reconcile deposits from your merchant account
• Match settlement amounts and fees directly to your bank statement

This feature works regardless of the merchant account you use and is optional. If you’re comfortable with your current reconciliation process, you may continue using it. However, many users find this method cleaner and easier to manage.

Step 1: Enable Credit Card Settlement

Before enabling the settlement process, make sure all existing credit card transactions have already been deposited into your bank reconciliation.

• Go to Accounts Receivable > Utilities > Maintain A/R Parameters – Posting Accounts

• Here, you’ll see the option to Enable Credit Card Settlement Process. Check the box to enable the feature.

Step 2: Define Settlement Accounts

Once enabled, you’ll need to assign two accounts:

Credit Card Holding Account

This account temporarily holds credit card transactions until they are settled into your cash account.

• Example: 1160 – Credit Card Holding

Credit Card Fees Account

This account tracks processing fees charged by your merchant provider.

• Example: 7380 – Credit Card Fees

What Happens After Settlement Is Enabled in Sage BusinessWorks?

After credit card settlement is turned on:

• Every credit card payment or credit card refund will be available to settle.
• Transactions posted through Accounts Receivable or Order Entry will flow into the settlement screen.
• Funds will remain in the holding account until you receive confirmation from your merchant account.

Let’s look at a few examples.

Example 1: Posting a Credit Card Payment in Accounts Receivable

• Go to Accounts Receivable > Transactions > Post Receipts

• Select your customer

• Choose Credit Card as the payment method
• Enter the payment date and amount
• Apply the payment to the open invoices
• Post the receipt

Example 2: Posting a Credit Card Payment in Order Entry

• Go to Order Entry > Invoices > Direct Invoicing

• Enter the customer and invoice details
• Add line items

• Go to the Summary Screen
• Apply the payment using Credit Card
• Post the invoice

Example 3: Posting a Credit Card Refund

• Go to Order Entry > Invoices > Returns > Invoice

• Select the customer and original invoice
• Choose Credit Card Refund when prompted

• Enter the refund amount
• Post the return

Step 3: Settle Credit Card Transactions

When you receive your merchant statement showing what was deposited into your bank:

• Go to Accounts Receivable > Transactions > Credit Card Settlement

• Enter the Posting Date
• Add a Deposit Reference and Description
• Enter any Credit Card Fees
• Click List Receipts to display available transactions
• Select the transactions included in the settlement
• Click Settle

• Review the Settlement Report when prompted

Note: If you use Paya as your merchant account, you can import a settlement file directly. When you settle on the terminal, you’ll receive a text file via email. Save the file, click Import, and Sage BusinessWorks will automatically select the settled transactions for you.

Review of the Posting in General Ledger

After settling, you can review how the transactions were posted:

• Go to General Leger > Reports > Journal Report

• Preview the Journal Report

You’ll see:

• Credit card payments posted to the holding account
• The settlement transferring funds into your cash account

• Credit card fees posted to the fees account

Review of the Bank Reconciliation

Finally, confirm the settlement in your bank reconciliation:

• Go to Cash Management > Transactions > Reconcile Checking Account

• Select the appropriate cash account

• Review the settlement deposit and fees.

These amounts will match what appears in your bank statement.

The credit card settlement feature in Sage BusinessWorks provides a clean, efficient way to manage credit card payments, refunds, and fees. By using a holding account, you gain better visibility into what has been processed versus what has been deposited making bank reconciliation faster and more accurate.

For additional help with Sage BusinessWorks, please contact our support team at 260.423.2414 or visit www.dwdtechgroup.com.

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