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

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 All apps , select Accounting, then select Chart of accounts (Take me there).
2. Select New account.
3. In the New account panel, select Expenses from the Account type ▼ dropdown.
4. Select Bank charges from the Detail type ▼ dropdown.
5. In the Account name field, enter name as Bank fees.
6. Select Save.

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 All apps , select Accounting, then select Bank transactions (Take me there).
2. Select the bank account with the transaction.
3. Locate and select the relevant transaction on the Pending tab.
4. Select Find match.
   Note: If you aren't able to see Find match, select Match from the Match/Categorise column.
5. On the Find other matches page, tick the box for the appropriate invoice.
6. Select the If needed, resolve the difference ▼ dropdown.
7. From the Category ▼ dropdown, select the Bank fees expense account you created.
8. Your difference amount will be automatically filled in the Amount field.
9. Select the applicable GST.
10. Select Match.

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