On-behalf payments on a Marketplace¶

Collection and payment on behalf of others in e-commerce platforms is a service that connects transactions between buyers and merchants. E-commerce platforms act as intermediaries, collecting money from the buyer and then transferring it to the merchant after the buyer confirms receipt of goods or services as agreed.

Requirements

This tutorial requires the installation of the following applications/modules:

On-behalf Payments

Some characteristics of the collection and payment on behalf of operations in e-commerce include:

All collection and payment transactions are stored in the system clearly and transparently, accurately reflecting the transaction value between buyers and merchants.
The collected money is not considered revenue by the e-commerce platform but is held temporarily until the transaction conditions are fulfilled. This amount is recorded separately in the financial statement.
Similarly, refunds to customers are also considered as payments on behalf of the merchant, which the e-commerce platform pays in advance for the merchant.
For each collection and payment transaction, there needs to be periodic reconciliation between the actual amount collected and the amount transferred to the customer, to ensure accuracy and accountability.

Overview the transaction between buyer, merchant and system like below:

On-behalf payments¶

The system allows for both auto-generate On-behalf payments and proactive On-behalf payments, as follows:

Automatic generate on-behalf payments¶

Note

You must Intergrated with Payment gateways to using this feature, if not, please using Manual On-behalf

Whenever a customer purchases a merchant’s product and pays through the online payment gateway, the system will automatically create a sale order and generate the On-behalf payment to the merchant.

That’s all, the system will record a On-behalf payment for the merchant in accounts payable.

Proactive On-behalf payment¶

If your customers choose to use the manual payment method of wired transfer, you will need to perform manual actions because the system cannot recognize payments outside of this system.

Whenever you receive the On-behalf payments, navigate to Accounting ‣ Customers ‣ Payments:

Create payments and fill the data:

Payment Type: Choose Receveive,
Customer: Choose customer who send the payment,
Amount: Input the total amount of the transaction,
On-Behalf Payment: Check to this checkbox.
On the On-behalf payment distribution tab: Press Add a line and fulfill the information:
On-behalf of: Choose the merchant who will receive the payment,

Amount: The amount the merchant receives. It will be auto-calculated when you indentify the percentage of on-behalf amount on Percentate column.
- Transfer to Account: The accounting account that will be transferred the amount to. Whenever the payment is confirmed, the system will be auto-generate the transfers journal entries.
- Residual Amount: The residual amount of the corresponding on-behalf partner.
- Payback status: The status of the paybacks.

Press the Confirm button to confirm payment on-behalf from customer to merchant.

Payback to merchants¶

When you need to pay the on-behalf amounts to the merchant, you create a payment with the following details:

Payment type: Choose Send,
Vendor: The merchant or partner that you need to pay the on-behalf amounts.
Suggest Lines: Check into this checkbox to suggest the on-behalf amount of the merchant.

On-behalf refund¶

In case the customer requests a refund through marketplace or you need to on-behalf of other partner to pay or after Debt comparison and Payment you have the differences, you can process same with the steps of Manual On-behalf, but with the following information:

Payment Type: Choose Send,
Customer: Choose the customer who requests a refund payment,
Amount: Choose the total amount of On-Behalf Payment,
On-Behalf Payment: Check this checkbox,
On the On-behalf payment distribution tab: Press Add a line and fulfill the information:
Amount: Amount merchant paid.
- On-behalf of: Choose the merchant who will refund.
- Amount: The amount the merchant have to payback to you. It will be auto-calculated when you indentify the percentage of on-behalf amount on Percentate column.

Press the Confirm button to complete the transaction.

Receive the on-behalf amount¶

When the merchant pay to you the on-behalf amounts, you create a payment with the following details:

Payment type: Choose Receives,
Customer: The merchant or partner that you receive the on-behalf amounts.
Suggest Lines: Check into this checkbox to suggest the on-behalf amount from the merchant.

The on-behalf reports¶

When all transactions of On-behalf have been completed, you need to do the debt comparison. You can navigate to Accounting ‣ Reporting ‣ Partner Ledger, or you can navigate to Accounting ‣ Reporting ‣ On-behalf Payments Analysis, move to pivot view and see the report: