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Credit card fees when processor pays net by check

Our small association uses QB desktop and uses a third party to program and accept on-line conference registrations. Typically Net funds are ACH into our account where we use the "two line - three step" bank deposit method of assigning fees to the appropriate account resulting in the correct net of funds into our account.

This year because of ACH issues, our vendor mailed a paper check showing the gross income, less fees resulting in a net income number. Because we now have a cash deposit, what is the best way to account for the fees charged? Sales receipt won't allow expenses to come off and it seems clumsy to bill the vendor.

Suggestions?

Best answer 03-27-2019 09:13 AM

Accepted Solutions
QuickBooks Team

Re: Credit card fees when processor pays net by check

Glad to hear again from you, @rdmarr.

 

I can help walk you through recording your sold registrations by creating a sales receipt. Let's get started!

 

First let's create an item fro the programming and credit card fees and link the item to an expense then put in amount in negative.

 

Here's how:

  1. Go to List.
  2. Choose Item List.
  3. Click the New drop-down menu.
  4. Select New.
  5. Choose Other Charge as Item Type.
  6. Enter the Item name.
  7. Select the expense account where the fees will be associated,
  8. Click Ok

Now, let's create the sales receipt and include the Fee item on it.

  1. Go to Customer.
  2. Enter Sales Receipts.
  3. Type in the Sales Receipt complete information.
  4. Click Save and Close.  ​​​​​​

That should do it! Keep in touch with us here in the Community if you have other questions about recording your income and fees in QuickBooks Desktop. I'm always here to help.

3 Comments
QuickBooks Team

Re: Credit card fees when processor pays net by check

Hi there, @rdmarr.

 

Thanks for providing details about your concern and reaching out to us. I can provide you the best and easiest way to account the credit card fees in QuickBooks.

 

You can create a check transaction. Just make sure to enter the fee as a negative amount.

  1. Click the Banking menu and choose Write Checks.
  2. Select the bank account.
  3. Under the Expense tab, select the account, enter the amount and add a memo.
  4. Click Save & Close.

 

For additional reference, you can check this article: Create, modify, and print checks.

 

That should keep you going today, rdmarr. Let me know if you have follow-up questions about credit card fees. I'm still here to provide more help. Wishing you all the best!

Experienced Member

Re: Credit card fees when processor pays net by check

Quicken will not record a negative check.

Example of what we are facing: We sold $10,000 in registrations. Our on-line registration vendor charged us $1,000 in credit card and programming fees. The registration vendor sent us a paper check for $9,000 with a stub showing the $10,000 gross income from registrations less the $1,000 credit card/programming fees.

Since we need to track the $1,000 cost of the programming & credit card fees, how do we account for these in depositing the paper check?

QB will not allow expenses to be deducted on a Sales Receipt, i.e., first line showing registration income of $10,000, second line will not allow you to enter a$1,000 expense to net down the deposit to $9,000.

 

 

QuickBooks Team

Re: Credit card fees when processor pays net by check

Glad to hear again from you, @rdmarr.

 

I can help walk you through recording your sold registrations by creating a sales receipt. Let's get started!

 

First let's create an item fro the programming and credit card fees and link the item to an expense then put in amount in negative.

 

Here's how:

  1. Go to List.
  2. Choose Item List.
  3. Click the New drop-down menu.
  4. Select New.
  5. Choose Other Charge as Item Type.
  6. Enter the Item name.
  7. Select the expense account where the fees will be associated,
  8. Click Ok

Now, let's create the sales receipt and include the Fee item on it.

  1. Go to Customer.
  2. Enter Sales Receipts.
  3. Type in the Sales Receipt complete information.
  4. Click Save and Close.  ​​​​​​

That should do it! Keep in touch with us here in the Community if you have other questions about recording your income and fees in QuickBooks Desktop. I'm always here to help.