When payment fees need to be added to a customer, such as a percentage charge on credit cards, as is to be paid by the customer, the system still credits the bank for the fee amount, even when configured to set the charge to Customer.

Issue Summary

When configuring a customer payment fee for credit card processing in Accounts Receivable → Payment Fee setup, the system does not post the journal entries as expected when the fee is intended to be charged to the customer.

Observed Behavior

• When manually adding the fee amount to the payment in a customer payment journal:
• The journal debits the bank account for the total amount (invoice + fee).
• Credits the customer balance for the combined amount (invoice + fee), but only marks the invoice as settled.
• Debits the customer balance again for the fee amount.
• Credits the bank account for the fee amount.
• There is no credit to the fee revenue account configured under Automatic transactions for the posting type Payment fee.
• The net effect is that the fee appears to be deducted from our bank account, as if we are paying the fee, rather than recognizing it as revenue collected from the customer.
• Additionally, the bank account reflects only the invoice amount as the deposit, not the fee collected.
• A second manual step is required to settle the fee transaction against the customer account.

Expected Behavior

• The fee should not reduce the bank deposit when the charge is set to Customer.
• The fee amount should post as revenue to the account defined for Payment fee in the posting profile.
• The customer payment should settle both the invoice and the fee in a single step without requiring additional manual settlement.

Impact

This behavior creates:

• Incorrect financial representation of collected fees.
• Additional manual steps for settlement.
• Risk of reconciliation discrepancies between bank deposits and system postings.