Matching Sales Receipts where Fees have been Deducted

When I tried your example above of adding a negative amount n QB online it produces this error 

Welcome to the thread, @Dcshel. I appreciate you doing the steps provided above. 

If you're editing the sales receipt to add another line item for the fees, ensure that fee is lower than the other positive line item. 

Doing so will allow you to make the changes. 

To get the most out of QuickBooks for your business, check some articles that are designed to help you get acclimated to the software. They can be accessed at the following link: QuickBooks Tutorials.

Know that I'm always here to help if you have other concerns. Just leave a comment below. Have a great day!

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Hi, I used the second method. "Add funds to this deposit" In that method QBO asked me to select the account under Add funds to this deposit. Which one is suitable? do I need to select my bank account or do I need to move that negative amount into a separate expense account?

Hi, 

There is a designated Expense account for fees that you can use otherwise you can choose whichever account is applicable. 

As we are not able to provide specific details on which account to use, please contact your Accountant if you are still unsure. 

Thanks, 

Rebecca 

I entered the daily credit card sales into a sales receipt; however, under "product/service" I am not able to use square fee expense account.  How do I record the daily sales w/tax, then deduct the cc fees so that it will match the bank deposit?  I should not have to do a g/l adjustment.  Am I not able to access expense g/l accounts to deduct amounts on sales receipt?

Veronica

First you shouldn't be doing all your days sales into one sales receipt, each sale should be it's own sale.  If you are using a credit card processer like PayPal, Stripe our Square where they send you a net amount rather than the legacy Merchant account type processor that sends 100% of sale and charges back a monthly fee, in those cases you will have to set up Square as another bank in QB. Then enter individual sales and their associated credit card discount fees/expenses into that dummy bank account then when funds are transferred into your real bank account it's a simple transfer from the dummy account into your actual bank account.  But make sure you clear in your dummy account each transaction associated with each transfer as they happen or you will get totally messed up in trying to balance things when you reconcile.  

I am helping a local non profit clean up their QB accounting and they have been putting a month worth of sales into one sales receipt.  Yep, I know, not the right road.  Fixing now.  I don't clearly understand your reply.  We have the bank review that comes through so I can see the cc deposit amounts, I have the fee amounts to deduct.  I still need to record the "sales" of that day that used cc as a payment option.  They do not use a linked POS at this time; however, hoping to move them towards one soon.  In that vein, I have to take a day's worth of cc sales that have been deposited into the bank account and enter it into QB.  In doing so, I am unable to make a sales receipt that deducts the cc fees as it won't give me the option of just putting in a negative amount to be charged to the fee expense account.  It sounds like what you are suggesting would require a general ledger adjustment at the end of the month to transfer from a dummy account to real account?  Not sure I follow on this one.  But, am open to learning more!  :)

I think I saw you say you use Square for your credit card donations, correct? If so, then they are just sending you the 'net' amount of your sales/donations not the gross, so you cannot enter the donations/sale amount into your bank register. That's a recipe for disaster. Now I hear you, someone didn't want to do the work to do things right and your working to batch cleanup the past and now doing one day at a time.  Okay, well I wouldn't recommend that moving forward.  I've been using Quick Books for our non-profit for 8 years and it's not as easy as we always want it to be.  First I recommend using the nonprofit version of Quickbooks online or desktop as it will make things a little better. Then to account for your daily sales to clean up the past, first create I. Quickbooks a Square "bank account".  Then create your daily sales receipt for the day of all your CC donations, depositing them into the Square bank account, not your real bank account.  

Then create a Vendor called Square. For each daily sales receipt you create look up your fees for that days transactions with Square. They have reports to show you all that.  (Most do it on certain batches of some Interval like daily,based on transactions). You could create an expense for all your collective daily transactions or do them by transaction (which is ideal) and then create that days expense for Square and make sure you select the Square bank to which it is charged, not your real bank. Now for that day do a bank to bank transfer from Square Bank to your real bank. And clear the 3 items in your Square Bank register, theTransfer, the Sales Receipt and the associated Square expenses.  (This is assuming that Square actually sent that next amount to your bank in a daily fashion with all of your prior days sales, it they broke it up differently in multiple batches or over different intervals, then that is how you need to at minimum enter your Sales (donation) Receipts.

Unfortunately doing all sales as a batch sales isn't allowing you to send out donor thank you Receipts or track giving by Individual donors so it's definitely not how any nonprofit should do things moving forward.  Each donation should be entered separate as a sales receipt all CC sales deposited into your Square bank. Doing all this will account for your expenses within Square, because they are expenses even though you never got the cash, Square acted as a bank taking expenses and sending net. 

Another option in the sales receipt to keep it consistent with all other donations is to have all sales deposit into the default undeposited funds account and simply transfer from that account into Square bank all the donations that came through them, either through editing each Donations deposit to account or doing a batch transfer and clearing manually each associated sale in that batch from Undeposited funds (that's more work but accomplishes same thing)

I don't know if this would work for me as I want the sales receipt to reflect what the customer paid.  I would like to see the list of possible matches to include payments that are greater than the transaction you are trying to match.  Is there a reason it doesn't?  I am like the original poster in that I will have a transaction from the bank and I match all the payments for that banking transaction and then 'resolve' it by adding in my fee expense.  My problem seems to only occur when I am trying to match one transaction.  It will not bring up that payment because it is more than the amount received.   I would like to be able to see it, then resolve it with my fee expense.  Is there a valid reason why payments that are greater than the amount received, don't come up?  My current solution is to delete the payment then I can match it to the invoice and resolve the difference by adding in a fee.

Sandra

Hello sniggihippo,

You're on the right path with the current solution you're using by deleting the payment linked to the invoice, and then matching the invoice from the downloaded bank transaction and using the Resolve difference option.

By design, QuickBooks Online cannot locate possible matches if the downloaded payment is higher than the payment recorded in QuickBooks Online. Furthermore, these are the main reasons why you cannot find a match:
 

• Dates and amounts don't match (or are not close)
• The bank account on the payment is not the same as the bank where the match is located (Or is set up as a credit card)
• The payment has been reconciled
• Multicurrency issue with exchange rates
• Its already been matched to something else

Also, you can check this article to learn more about how to Categorise and match online bank transactions in QuickBooks Online.

Just leave a comment below if you need more help with QuickBooks Online. Have a great day!

This doesn't explain why "By design, QuickBooks Online cannot locate possible matches if the downloaded payment is higher than the payment recorded in QuickBooks Online." 

Is there a genuine reason why? Esp when I can match an invoice that is higher and in both cases then resolve it.  I would understand if there was no ability to resolve it, but since there is what is the reasoning of not allowing you to match a higher payment.  As there is a legitimate reason I would want to match it and resolve it with a fee expense as that is what has occurred.

Sandra

Hi sniggihippo,

Have you tried to check if the date of the invoice payment recorded in QuickBooks Online has the same date as the bank feed? 

Furthermore, if you would like to allocate the overpaid amount to an expense account, we can record an invoice payment and then create a bank deposit and make sure that the transaction date is the same as on your bank feed. Let me show you how.

Record an invoice payment

1. Open an invoice and select Receive payment. 
2. Make sure that the Payment date selected is the same as the bank feed. 
3. On Deposit to, select Undeposited funds. 
4. Tick the invoice to be paid. 
5. Invoice and payment must have the same amount. 
6. Select Save and close.

Create a bank deposit 

1. On the + New button select Bank deposit. 
2. On Account drop-down menu, select the bank account where the payment was deposited. 
3. Make sure that the Date selected is the same as the bank feed.
4. On Select the payments included in this deposit, tick the invoice. 
5. On Add funds to this deposit, let's add the fees from here.
6. Select the customer name on the Received from drop-down menu.
7. On Account, select the amount where you would like to allocate the fees. 
8. Enter the Amount for fees and GST if applicable. 
9. Select Save and close.

Once done, let's match the bank deposit created on your bank feed. Please note that the bank deposit we've recorded includes the invoice payment and fees. Here's how to match a transaction:

1. Go to Banking.
2. Select the bank account.
3. On For Review tab, select the bank feed.
4. If the system automatically find match, you can review the transaction found. If not, tick on Find match. 
5. Then click Confirm to match. 

Also, you can check on this article on how to account for Bank Fees when matching transactions in Bank Feed. 

Let me know if you need further assistance with matching your bank feed in QuickBooks Online. 
 

The dates are the same there is no issue with that the only reason it isn't coming up is that it is greater than the amount incoming from the bank.  I have a workaround which is to delete the payment and just match to the invoice (which is greater than what I am trying to match as well).  My question is why isn't it coming up, there doesn't seem to be any logical reason why an invoice that is greater can be there, but not a payment.  This may be a legacy issue due to not being able to resolve transactions previously, but I can't see why you can't do it now.  It is a bug?

Hello there,

Is the payment under the same bank account, and the date is within the date range? Also please check if the date is within the date range and should not have a date difference of more than 19 days.

From what I've tried, I also got the same result with a greater payment amount downloaded from the banking screen the system will not be able to find possible matches if payment in QBO is lesser or not equal. This is currently working as a design for the payment transactions.

In the meantime, please continue to use the option you've been doing by removing the payment on the invoice and matching it to the downloaded bank feeds, and use the resolve difference option.

If you have other questions, feel free to leave a comment below.

Hi:

I think I have a similar case, but still, I am not able to resolve it. I explain here:

I am selling some products in a store that cost me a monthly space rent fee ($50) and then 15% of what they sell from my products.

Last month, I just sold $40 worth of products, and therefore, they took 15% of that as commission, that is $6. Then, at the end of the month, they charge me the next month space rent fee which is $50, but they deduct my sales, which in this case were 40-6=34. Therefore, they charge me in the bank, 50-34= $16.

Then, in QuickBooks, I want to create what happened, right? So, I create my sales receipts as $40 minus $6 of commission. Then, I create an expense of $50 for the month rent fee. But then, when I try to match the $16 payment in my bank, I cannot match with the sales receipt plus the monthly fee.

I tried also to create the sales receipt only with the $40 sale, then create the expense as the commission of $6, and then create the expense for the rent as $50. But when I try to match the $16 in the bank, only the $6 expense appears.

How can I do something like this?

All items I create are dates in the same date, therefore, that shouldn't be a problem.

Thanks in advance! 

Thanks for joining this thread, @muxu. I want to ensure you can match the transactions in QuickBooks Online (QBO).

I appreciate you sharing details of your concern. Let me share some info to further help you match the entries in the program.

In QBO, you have to ensure that the transactions you need to match are not greater than the one entered. Below are the following reasons why you cannot find a match:

• Dates and amounts don't match.
• The bank account for the payment is not the same as the bank where the match is located (Or is set up as a credit card).
• The payment has been reconciled.
• Multicurrency issues with exchange rates.
• It's already been matched to something else.

For reference, see this article: Categorise and match online bank transactions in QuickBooks Online.

Additionally, here's a helpful resource that you can access to have guidance in recording fees: How to account for Bank Fees when matching transactions in Bank Feed.

If you're still unable to match the transactions, I recommend reaching out to your accountant. This way they can further check your records and guide you to correctly match them. If you are not affiliated with one, feel free to use our Find an Accountant tool to look for one near your area. 

I'm always ready to provide additional help if you have any other concerns about matching transactions in QBO. Please don't hesitate to post here again. Have a great day ahead and take care. 

This sounds very much like my problem.  They say it is working as designed but I don't buy it, because if you have invoices that are greater ie say your $40 was an unpaid invoice, then it would show up when trying to match.

Sandra

Hi Rose,

I followed your instructions and now my bank account balance is now minus the merchant fee of $8.28.

See attachment.  Original invoice was for $275 so I added the -8.28 for the square merchant fee like you instructed.  My bank balance is less this amount of $8.28 compared to quickbooks balance. Thanks!

Hi mike82sf,

Thanks for joining the thread.

You can use the Resolve difference option when matching the bank feeds in QuickBooks Online.  Here's how:

1. Click on the Transactions tab, select Banking.
2. Locate and select the relevant transaction on the For Review tab.
3. Select Find Match.
4. In the Match transactions window, select the checkbox of the appropriate invoice.
5. Select on Resolve Difference to open the Add resolving transactions fields.
6. Select Add new transaction.
7. From the drop-down list in the Category field, select the Bank fees expense account.
8. Enter the Amount of the fee.
9. Select Save and close.

If you're still unable to balance the transaction, I'd recommend contacting directly our Customer Support Team. That way, we can further check the transaction you have recorded in QuickBooks with the downloaded bank feeds.

Feel free to reply if you have more questions about QuickBooks Online!