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Established Member

How do I reconcile a Customer Sales Invoice and a Merchant Fee Bill to the one post-Fee payment.

Example: FormBay Pty Ltd (They issue both an Invoice and a Bill with each Sale.)

-  Sales Invoice #54 for $100 to customer FormBay, is entered into QBO under the Customer's file.

-  Bill #123 for $10 from supplier FormBay, being for Payment Processing Fees deducted from the customer FormBay's payment, is entered into QBO under the Supplier's file.

-  Payment of $90 from FormBay is received into the bank account.  (This is the post-fee payment.)

 

Problem:

-  How do I connect both the Sales Invoice #54 for $100 and the Bill #123 for $10 to the one $90 payment transaction, so that both the Invoice and Bill are connected to each other and so the Bill #123 is searchable, i.e. using the magnifier to search for the Bill number 123?

 

Considerations:

*  Using the "Resolve Difference" in the Reconcile screen by adding in an Expense, is not a suitable solution, as there is no provision to enter in the Bill reference number #123 and therefore not searchable.

* Our bookkeeping process is to enter the Bill and not an Expense.

* We need to know which Bill went with which Invoice.

* As we process a lot of these transactions, I need to be able to search QBO for Bill numbers to see if any are already entered into QBO.

Solved
Best answer 08-07-2019

Accepted Solutions
QuickBooks Team

Re: How do I reconcile a Customer Sales Invoice and a Merchant Fee Bill to the one post-Fee payment.

I have a suggestion that can help you record the transactions, AMKASE.

 

Instead of entering a bill for the merchant fee of $10, we can add the transaction as an expense in the bank deposit section. This is to match the transactions you have in the banking section and to reconcile the account.

 

The first thing that we need to do is record the Invoice #54 for $100. Then, create a receive payment for the same amount. Let’s make sure that this is deposited to the Undeposited Funds account.

 

Here’s a sample screenshot of the payment.

 

Once done, we will record a deposit including the merchant fee.

 

Here’s how:

  1. Click the Plus (+) icon located in the upper right-hand corner.
  2. Under Other, click Bank Deposit.
  3. Select the Account and Date.
  4. Under Select the payments included in this deposit, put a check mark on the payment we just added.
  5. Under Add funds to this deposit, select the customer’s name from the Received from column.
  6. Choose Bank charges and fees or any expense account from the Account drop-down menu.
  7. Enter the amount as negative in the Amount box.
  8. Click Save and close.

I'm including this sample screenshot for reference.

 

Finally, let's match the transactions by going to Banking, and clicking Match in the For Review section.

 

 

 

For reconciling the account, here's an article for the steps: How to reconcile accounts.

 

If there's anything else you need about customer transactions, please let me know and i'll get back to you. Thanks.

2 Comments
QuickBooks Team

Re: How do I reconcile a Customer Sales Invoice and a Merchant Fee Bill to the one post-Fee payment.

I have a suggestion that can help you record the transactions, AMKASE.

 

Instead of entering a bill for the merchant fee of $10, we can add the transaction as an expense in the bank deposit section. This is to match the transactions you have in the banking section and to reconcile the account.

 

The first thing that we need to do is record the Invoice #54 for $100. Then, create a receive payment for the same amount. Let’s make sure that this is deposited to the Undeposited Funds account.

 

Here’s a sample screenshot of the payment.

 

Once done, we will record a deposit including the merchant fee.

 

Here’s how:

  1. Click the Plus (+) icon located in the upper right-hand corner.
  2. Under Other, click Bank Deposit.
  3. Select the Account and Date.
  4. Under Select the payments included in this deposit, put a check mark on the payment we just added.
  5. Under Add funds to this deposit, select the customer’s name from the Received from column.
  6. Choose Bank charges and fees or any expense account from the Account drop-down menu.
  7. Enter the amount as negative in the Amount box.
  8. Click Save and close.

I'm including this sample screenshot for reference.

 

Finally, let's match the transactions by going to Banking, and clicking Match in the For Review section.

 

 

 

For reconciling the account, here's an article for the steps: How to reconcile accounts.

 

If there's anything else you need about customer transactions, please let me know and i'll get back to you. Thanks.

Established Member

Re: How do I reconcile a Customer Sales Invoice and a Merchant Fee Bill to the one post-Fee payment.

Thank you for the great detailed information. From this I was able to adapt your answer to suit my needs. My work-around was to instead perform the adjustment as an expense in the "Banking" screen under reconcile the difference. A much simpler way of doing what you explained and admittedly what QBO Support had told me was the way to do it. I just didn't like their answer and searched for a better solution, but then your response confirmed what Support had said. Thanks again. You helped put my mind at ease.