Posting Majestri Transfers To Xero
If you are using Majestri's payment processing services, then we deposit the proceeds as a lump sum in your club bank account once a week (minus our 2.9% charges).
Reflecting this activity in your accounting system can be a little tricky as you need to reflect the revenue correctly, but also Majestri's charges that need to be created as an expense transaction for each deposit.
Luckily, our Xero integration handles all this complexity for you.
Step 1 - Majestri Transfer Breakdown
After launching the posting process from the Xero Summary screen, the first step is to view the detailed breakdown of Majestri's deposit into your bank account.
The green amount in this screen is the amount that was deposited into your bank account. The goal of this posting process is to create the bank transaction in Xero that is going to be 'matched' against that amount in green.
Additionally, Majestri also shows you the split of that money between registration and shop revenue. We are going to be creating revenue transactions against one or more registration revenue accounts, and one shop item account.
If it all looks good so far, then click the blue Post to Xero button.
Step 2 - Select Account Numbers and Confirm Posting
After electing to post a Majestri Transfer into Xero, you are presented with a screen that asks you to pick the different accounts and contacts that are going to have transactional activity posted against them.
Let's examine each one of these settings and explain what values you should be plugging in.
Majestri Contact
You should have a contact set up in Xero that represents us (Majestr). This contact will be used on both the bank transaction (our deposit) and the expense transaction (our charges).
Bank Account
This should be set up in Xero and represent the bank account where Majestri deposits your proceeds each week.
Majestri Clearing Account
This account should be a created "Current Asset" account used for clearing payment processor funds. It should always retain a $0 balance as it is posted to and cleared in the one set of transactions.
Event Registration Revenue Accounts
There will be an opportunity to enter a revenue account for each event that collected money during the Majestri week. If you don't have any special registration reporting requirements, then you can just use the same account number for each event. If you like to see a bit of sophistication in your revenue reporting, then you can use different account numbers for different types of revenue.
Online Shop Revenue Account
Our recommendation (and really the only way this will work) is to have a single and separate revenue account set up that reports income generated from your club's online shop.
Majestri Charges Account
This is an expense account that should be used to post Majestri's payment processing charges, which are withheld from the deposit we make to your club's bank account. Even though this money does not hit your account, it should still be recognised as an expense.
Effective Date
By default, this will set to the current date. Whatever date it is set to is the date that the bank transaction will be created with on the Xero side. Some clubs love how accurate our posting to Xero is so much that they would like to go back through time and post historical revenue against previous bank deposits. This date gives the ability to match the historical bank statement item by setting an effective date back into the past.
Batch Narration
It is very useful to have a simple text narration that can be used to give context to people coming after you. This setting is mainly for historical record on the Majestri side, but is extremely useful to jog your memory down the track.
GST
If you are eligible for GST, then this should be switched on and left on. GST will be automatically created and posted on all revenue and expense transactions.
Step 3 - Verifying the Outcome in Xero
If all went well, you should be returned to the Xero Summary screen with a nice confirmation message that all posted well into Xero.
Let's log into Xero now so we can verify that everything was created as expected.
To verify that everything worked as expected, we'll navigate to the bank transaction we created. This is what you're going to be eventually reconciling with the unreconciled deposit on the bank statement. As you can see the posting from Majestri has created an 'unreconciled' Receive Money bank transaction. Note that the date of this transaction was the effective date specified in Majestri.
If we drill down into that bank transaction, we'll see the moving of that revenue into a clearing account.
If we then navigate to our Payment Processor Settlement account, we can find the reversal of that clearing transaction. It will show the breakdown of revenue (registrations, shop) and expense (Majestri's payment processing).
So, it all looks correct. If we express what's going on here, then we could write an equation of this activity as:
Majestri Deposit = Revenue (Registrations + Shop) - Expense (Majestri's 2.9% Payment Processing)
FAQ
If you've got a specific question about our integration into Xero, chances are that somebody has asked it before you.
Please head over to our Xero Integration FAQ to get the information you need.