cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Find everything you need to know about EOFY! Visit quickbooks.com.au/EOFYPreparation.
Highlighted
Level 1

Recording daily fee deductions as invoiced monthly

Hi, long time learner first time poster. Thank you to all for the vast knowledge shared on his forum. Here is my dilemma....

 

My cashless processing provider charges a per transaction fee and deducts this amount from my daily sales to which the remaining funds clear daily into my bank account. Recording the daily income is straight forward, however, at the end of each month I am issued an invoice stating the fee's paid throughout the relevant period.

 

How do i record these automatically deducted fee's if there are no transactions to match them too?

 

Assistance is very much appreciated

5 Comments 5
Highlighted
Moderator

Recording daily fee deductions as invoiced monthly

Welcome to the Community, Spiral Selections.

 

Let me share information on how this can be treated in QBO. You'll have to manually enter them and make a deposit into QuickBooks.

 

Here's how to make a deposit:

 

  1. Open your QuickBooks Online account.
  2. Go to the Banking menu, then select Bank Deposits.
  3. From the Account drop-down menu, select the bank account you want to deposit the amount.
  4. Put a checkmark for each payment.
  5. Select Save and close.

I've added these articles for additional information with making bank deposits: How to record bank deposits.

 

Let me know if you have any other concerns. I'll be around to help you out.

Highlighted
Level 1

Recording daily fee deductions as invoiced monthly

Thanks for your reply GlintteC.

 

My interpretation of your response is how to account for the daily sales into quickbooks. Currently i have a rule setup that automatically posts those sales into income which is working well. My issue lies with accounting for the fee's that are deducted by my provider to which the then pass on the remainder.

 

eg:

i make $200 worth of sales

of this $200, $10 goes towards transaction fee's

$190 clears to my account

 

How do i account for this $10 seeing as the funds never pass through my accounts?

Highlighted
QuickBooks Team

Recording daily fee deductions as invoiced monthly

Thanks for coming back to this thread, Spiral Selections.

 

I can share some steps on how to record the fee.

 

We can add the processing fee as a second line item on the invoice, then enter the value of the fee as a negative amount. This way, the invoice will show as paid in your reports, and at the same time, we're able to record the fee. I'll guide you how:

 

  1. Click the + New icon, then select Invoice.
  2. From the Customer  drop-down menu, select a customer and fill in the other necessary fields. 
  3. Select the appropriate product or service from the Product/Service column, then enter $200.00 for the amount.
  4. On the second line, select +Add new from the  Product/Service column to create a service item for the credit card processing fee.
  5. Choose Service, then enter the necessary information.
  6. In the Income account drop-down menu, select the appropriate expense account since this is a fee (I recommend reaching out to your accountant in choosing the right expense account to avoid confusion and discrepancies). 
  7. After adding all the information, hit Save and close.
  8. Enter -10 for the amount of that service item.
  9. Click Save to complete the process.

If you want to track all the invoices that are due on a particular day or date range, you can refer to this article in customizing the report: Report of invoices that are due on a specific day.

 

I'll be right here to keep helping if you need additional assistance in recording your transactions to QuickBooks. Don't hesitate to tag me below.

Highlighted
Level 1

Recording daily fee deductions as invoiced monthly

Thankyou KlentB for your assistance.

 

I have followed your instructions and it has answered my question for the most part, however, crating an invoice does not give me the option to specify where to allocate the split of funds. Income to income and Card processing fee to my relevant account.

 

From what i see according to QBO is the negative amount is simply deducted from the total yet not recorded as a fee, am i missing a step?

 

Also these reports come in daily, so to manually enter 365 at 5min each = 30+ hours p/a aka a whole lot of time when your a one man band. Is there a more time efficient solution?

 

Appreciate you assisting

Highlighted
Moderator

Recording daily fee deductions as invoiced monthly

Hey there, Spiral Selections.

 

I'd be glad to help you record your daily fee deductions in QuickBooks Online.  To record these fees, you'll need to create a bank deposit transaction and record the fees in a negative amount.

 

  1. Click the Plus icon (+) at the top.
  2. Under Others, click Bank Deposits.
  3. Select the invoice payment.
  4. In the Add funds to this deposit field, choose the relevant account.
  5. Enter a negative amount, under Amount.
  6. Click Save and close.

I'm including some articles to know more about depositing and categorising your transactions in QuickBooks:

 

Let me know if there's anything else you need with recording your fees in QuickBooks, I'll be around to help. You have a wonderful day!