Payment Entry - how to record included bank fees?

ERPNext Accounting
1

I am trying to figure out how to record a cash withdrawal in ERPNext

  1. bank account currency: Hong Kong Dollar
  2. cash currency: Chinese Yuan
  3. bank fees: Deducted in the same transaction

I guess #1. & #2. are not a problem for me right now, but the withdrawal fees that are included in the same transaction (not a separate entry) is giving me some headaches.

The simplest way to record this in ERPNext would be a “Payment Entry” (Type: Internal Transfer) because it does not bother with the debit/credit terminology and likewise is straight forward to anyone (‘acc paid from’ / ‘acc paid to’ is pretty self-explanatory).
Now the problem I see here is that I do not see any way to create an extra entry for the bank fees (which should point to an “bank fees” expense account).

Do I just not see the hack to do this with a Payment Entry, or is the only way a 3-lined (bank account/cash/bank fees expense account) Journal Entry? If so, how to credit/debit go in such a 3-way?

2

It’s not designed to do what you’re asking. Journal entry may be able to do it, if the accounts and account currencies are set correctly.

3

Have you checked ‘Deduction or Loss’ section in payment entry?

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4

This is the problem, it will only work in the same currency as the bank account, and the deductions in the same account currency as the row in the deduction (as far as my experiments have led me, these things change).

5

yes, I got that running, It’s cumbersome and intimidating to the average person though

that’d be nice, but being in a multi-currency situation comes at a the cost of quite some things not playing nice. Though does the DEDUCTION OR LOSS in the Payment Entry. Maning. It does not accept non default-currency accounts.

6

for everyhone who faces a similar situation …

so, in a multi-currency scenario this is how you can do this with a 4-way Journal Entry.
In my case both accounts are in non-default currency and, which I doubt makes it more complex, both are different currencies.

Row    account            Debit    Credit    currency
===================================================================
 1     bank account         -        100     non-default currency 1
 2     bank fees expense    20        -      non-default currency 1
 3     Cash in Hand        120        -      non-default currency 2

upon saving/submitting this will throw an error like

Total Debit must be equal to Total Credit. The difference is -1.871

at you. (the value above should be in the default company value I guess). At this point you take the offer to

Make Difference Entry

This adds a 4th (empty) line, which I assign to an Exchange Gain/Loss account (in company default currency) and debit the amount mentioned in the error message

Row    account            Debit    Credit      currency
======================================================================
 1     bank account         -        100        non-default currency 1
 2     bank fees expense    20        -         non-default currency 1
 3     Cash in Hand        120        -         non-default currency 2
 3     Cash in Hand         -         -1.871    default currency

(actually I Debited the positive amount (1.871) to the gain/loss account, but this does the same thing)

I assume in a case where one of the 2 accounts (paid from/ paid to) is in default currency the same principle applies

if you are in an end-to-end default currency I think the "Deduction or Loss’’ solution mentioned by @Basawaraj_Savalagi is your best choice

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