cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Frequent Explorer *

New user with new S Corp. Accepting payments differently.

Hello everyone. I am just now getting started with QuickBooks because we have recently changed our company to an S Corp. I understand the concept of invoicing customers and then receiving payments but in our situation we only receive payments from one customer. We sell products on a specific website and they pay us monthly.

 

The thing that has me confused is this company takes their cut before giving us our money. So something like eBay you get all your money minus the PayPal fees and then you pay your eBay fees, but in our case if we made $4,000 and the company gets $800, then they only send us payment through Paypal for $3,200.

 

So my question is, would I still create this online company as a customer in Quickbooks, create an invoice each month (NET or Gross??) and then when we receive payment on the 15th we go to receive the payment / record deposit. If I do the NET then I'm not recording my fees monthly and if I do the gross the customer will have a balance each month.

3 Comments
Community Backer **

Re: New user with new S Corp. Accepting payments differently.

You receive the full payment from the customer to clear out the invoice.  Ensure that your preferences are to deposit funds to the undeposited fund account.  Make a deposit and select the transactions.  On the deposit screen, drop down a line and enter credit card fees (expense account that you may need to set up) and enter that amount as a negative so that the total deposit equals what was credited to your bank account.

Frequent Explorer *

Re: New user with new S Corp. Accepting payments differently.

Thank you! That looks like it is exactly what I want. I did a test with it and the only possible issue I see is it will increase the "Unbilled time and expenses" for that customer. I don't know if that will affect anything at the end of the year (keep in mind that I'm completely new to this)

Frequent Explorer *

Re: New user with new S Corp. Accepting payments differently.

Thank you! That looks like it is exactly what I want. I did a test with it and the only possible issue I see is it will increase the "Unbilled time and expenses" for that customer. I don't know if that will affect anything at the end of the year (keep in mind that I'm completely new to this)