Reconciling and Recording Credit Card Transactions in the General Ledger
This guide outlines procedures to record credit card journals in UCSF's PeopleSoft financial system.
Key Concepts
Credit Card journals in PeopleSoft are used to record payments received from third parties. Journal Preparers and Journal Approvers are responsible for ensuring that all journal entries are reasonable and accurate based on the documentation, knowledge of the activity, and conformity to applicable UCSF Policies and outside agency requirements.
See Establishing Journal Preparers and Approvers in PeopleSoft for the steps and training required to assign the Journal Preparer and/or Journal Approver role to a UCSF staff member.
At UCSF, source codes are used to distinguish the different types of PeopleSoft journals. Each source code has specific rules and guidelines. Follow the instructions in How to Prepare, Edit, and Submit Credit Card Journals (Source Code 323) for credit card (source code 323) journals in PeopleSoft.
Journals should be prepared and approved weekly. Alternate Journal Approvers must be established and assigned to prevent backlogs when a primary department Journal Approver is on vacation or extended leave.
The financial system month-end close deadline for campus departments is the fifth business day of the following month. All credit card journals must be submitted and approved by campus departments by this deadline to ensure that payments are recorded in the proper period. Payments deposited and received at the beginning of a month before the month-end close for the prior month should not be processed until the period is open for the month.
If you have questions about credit card journals, contact a Cash Operations Team member.
Procedures
Reporting Tools
PayConex is an online reporting tool available from Bluefin that provides payment terminal processing details and support functions to merchants utilizing Bluefin devices.
Business Track (formerly ClientLine) is a free web tool for tracking, analyzing, and monitoring payment processing information provided by our merchant processor. Features of Business Track include:
- Standardized reports
- 13 months of electronic transaction detail
- Bank statement reconciliation
- Summaries of credit, debit, and gift card activity for selected time periods
- Schedule reports for email delivery
- Detailed chargeback and retrieval expenses
Due to the sensitivity and the amount of confidential data, access to Business Track should be limited to employees who are familiar with the University of California Policy BFB BUS-49 (opens in new window). Email [email protected] to request access and enrollment in Business Track/ClientLine.
Journal Entries
Departments are required to settle the transactions via the processor on a daily basis. Financial journals must be prepared and approved by the department following the Credit Card Journals job aid.
Refunds
Credit Card Operating Regulations require that all refunds MUST be issued to the same credit/debit card as the original sale. The process for issuing refunds varies depending on the type of payment system used. Refunds CANNOT be issued before the end of day settlement has been processed.
Due to the potential for fraud, departments must carefully review operational procedures and determine staff members authorized to issue refunds. It is recommended that a department manager or supervisor with no cashiering functions be designated.
Under exceptional circumstances, such as when the credit/debit card account is closed, the refund can be processed via a Check Request (Form 5) with supporting documentation and settlement receipt attached.
Chargebacks
A chargeback reverses a credit/debit card transaction by debiting the campus bank account. Transactions may need to be reversed for reasons such as authorization errors, processing errors, or disputes.
The most efficient way to receive chargeback information, except for American Express, is through the Business Track Disputes Dashboard. Business Track offers chargeback information dating back six months, and provides merchants with the description, amount, issuer, and other transaction-related information. Through Business Track, merchants can immediately dispute chargebacks.
You can also receive chargeback details through mail or email, but this method is not recommended as letters are easily lost in the mail or delayed, and email can be overlooked or deleted. You also run the risk of not having enough time to dispute the chargeback due to the restricted time frame for disputing charges.
For American Express, chargeback notification is sent to the Controller’s Office Cash Operations Team via email. Upon receiving notification, the Cash Operations Team will forward the notification to the department for further research and response.