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How to account for bank fees when matching transactions in the bank feed

SOLVEDby QuickBooks31Updated January 15, 2024

If you received less than the due amount on invoice because of bank fees, and you need to record this from the bank feed, you'll first need to create an expense account for bank fees, if you don't have one already, and then resolve the difference when matching the transaction from your bank feed.

Create an expense account

The first step in this process is to create an expense account for bank fees, if you don't already have one.

Note: If you've connected the Accept Card Payments with PayPal app, the expense account PayPal Fees is already created for you, and you can skip this step.

  1. Go to Transactions and select Chart of accounts (Take me there).
  2. Select New.
  3. In the Account pop-up, select Expenses from Account Type dropdown.
  4. Select Bank charges from Detail Type dropdown.
  5. Enter Name as Bank fees.
  6. Select Save and Close.

The account is created. The next step is to resolve the difference when matching transactions.

Resolve the difference

Once you have an expense account for bank fees, you can resolve the difference between the invoice and the payment when matching transactions from your bank feed:

  1. Go to Transactions, then select Bank transactions (Take me there).
  2. Select the bank account with the transaction.
  3. Locate and select the relevant transaction on the For review tab.
  4. Select Find match.
  5. In the Match transactions window, tick the box for the appropriate Invoice.
  6. Select Resolve to open Add resolving transactions.
  7. From the Category dropdown, select the Bank fees expense account you created.
  8. Enter the Amount of the bank fee.
  9. Select the applicable GST.
  10. Select Save.

Your transaction is now matched off against the invoice, and the bank fees are accounted for.

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