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How to record bank fees

I've read everything I can online about the bank fee's, but, I'm still unsure how to enter them to match with my bank feed download. Do I create a vendor called Bank Fee? And then select Bank Service Fee's as the account?

Best answer 03-11-2019 06:14 PM

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when you reconcile, there is a field for Bank Fees.  ente...

when you reconcile, there is a field for Bank Fees.  enter the fee there.  if it doesn't populate with an expense account, use Bank Fee (create it if necessary) as the expense account.

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when you reconcile, there is a field for Bank Fees.  ente...

when you reconcile, there is a field for Bank Fees.  enter the fee there.  if it doesn't populate with an expense account, use Bank Fee (create it if necessary) as the expense account.

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It won't allow me to enter a credit. How do I do a servic...

It won't allow me to enter a credit. How do I do a service fee reversal?
Community Backer ***

If the Service Fee Reversal is in the same month as the S...

If the Service Fee Reversal is in the same month as the Service Charge and for exactly the same amount, don't enter either the Service Fee or the Fee Reversal at all.
Established Community Backer ***

A Credit is the same as "interest" Earned = Make a Deposi...

A Credit is the same as "interest" Earned = Make a Deposit entry.
Community Backer ***

In many cases where account activity is limited, the bank...

In many cases where account activity is limited, the bank charges a Service Fee and then immediately reverses the Fee. In these cases, I do not record either the Fee or the Reversal. It's a wash.
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@impossible     agreed

@impossible     agreed
Experienced Member

Hi bojopr, To match the bank feed I would write a cheque,...

Hi bojopr,

To match the bank feed I would write a cheque, the payer would be the bank (RBc, TD, Scotia, etc). Then you can use the Bank Service Charges account.

As mentioned above you can exclude from the bank feed & assign the bank feed from the reconciliation screen as well. 

Either way is correct, it’s a matter of preference. 

Not applicable

there are two fields to enter data after you open the rec...

there are two fields to enter data after you open the reconciliation window.  the first one says "Service Charge" and the second says "Interest Earned."  Enter your credit in Interest Earned and change the account.
Community Contributor **

Re: How to record bank fees

And do Bank Fees include GST/HST?  Or are they zero-rated? Or Exempt?

Experienced Member

Re: How to record bank fees

Bank feeds don’t include anything unless you tell it to. Think of them as a live bank statement.  They let you know what has cleared your bank. They should match existing transactions whether they’re deposits or cheques or receipts pushed over from an app like ReceiptBank. You can add them directly from the bank feed though. Click on the transaction & choose who the payee is, what account it needs to be allocated to & what tax you paid. Exempt tax should be used if you didn’t pay tax & it affects your income or expenses, zero rated is if you paid in a foreign currency. Out of Scope should be used for items that affect the Balance Sheet (assets, liability or equity) like a draw. For Out if Scope I would create an expense first and select Out of Scope from the Amounts are drop down menu. If you use it on a transaction line it affects your GST/HST reporting. 

 

I hope this helps!

Community Contributor **

Re: How to record bank fees

I'm sorry, I didn't mean bank 'feeds'.  I meant to ask if bank 'fees' are exempt from GST/HST -- does HST/GST apply to them or not?  I suppose that's  question for Canada Revenue Agency, sorry.

Active Member

Re: when you reconcile, there is a field for Bank Fees. ente...

I don't seem to have the option to enter interest and charges in the reconciliation window.  Does this need to be turned on in settings?

Experienced Member

Re: when you reconcile, there is a field for Bank Fees. ente...

If you’re using bank feeds you would allocate the interest or bank charge to the transaction that it pulled the money out from. Example, $10 coming out Mar 31 was for monthly bank fee.  If you do not use bank feeds, then when you go to your reconciliation section there are boxes to enter bank charge and interest income amounts. 

 

I hope this helps.