When you receive transactions via a Conduit, oftentimes the processing fee has already been removed from the total amount of the check.
For example, you receive a Conduit check in the amount of $990. However, the splits included two $500 contributions, which total $1000. This means a $10 processing fee was already removed by the processor.
In this case, you would add a Monetary Contribution, using the processor as the Entity, in the amount of $990, the exact amount you received. Then, in the Splits area, add the two $500 contributions.
In ISP, the system is designed to automatically account for the $10 difference and while no actual expense transaction is created in the database, it will appear on the report as if one is there. This is for accounting purposes to ensure line totals add up correctly.
The Conduit Processing Fee transaction will appear on Line 17 if you are filing a Form 3 and on Line 21b (for both Party and Non-Party versions) if you are filing a Form 3X.
Please note that when it comes to conduit checks, they pull to reports based on the date the conduit check was received. This is in line with how JFC’s and other contributions with splits are typically reported.