To match the bank feed I would write a cheque, the payer would be the bank (RBc, TD, Scotia, etc). Then you can use the Bank Service Charges account.
As mentioned above you can exclude from the bank feed & assign the bank feed from the reconciliation screen as well.
Either way is correct, it’s a matter of preference.
Bank feeds don’t include anything unless you tell it to. Think of them as a live bank statement. They let you know what has cleared your bank. They should match existing transactions whether they’re deposits or cheques or receipts pushed over from an app like ReceiptBank. You can add them directly from the bank feed though. Click on the transaction & choose who the payee is, what account it needs to be allocated to & what tax you paid. Exempt tax should be used if you didn’t pay tax & it affects your income or expenses, zero rated is if you paid in a foreign currency. Out of Scope should be used for items that affect the Balance Sheet (assets, liability or equity) like a draw. For Out if Scope I would create an expense first and select Out of Scope from the Amounts are drop down menu. If you use it on a transaction line it affects your GST/HST reporting.
I hope this helps!
If you’re using bank feeds you would allocate the interest or bank charge to the transaction that it pulled the money out from. Example, $10 coming out Mar 31 was for monthly bank fee. If you do not use bank feeds, then when you go to your reconciliation section there are boxes to enter bank charge and interest income amounts.
I hope this helps.
My client was required - for a time - to charge an Int'l Bank Fee on certain vendor bills for a manufacturing order. A Service Item was created for Int'l Bank Fee - tied to the Expense Account: Bank Fees/Banking Expense. When the item was received, this fee was not accounted for on the Item Receipt, thus creating a "Balance" in the Inventory Offset Account. My question - 1) Is this the correct type of expense account to use for this purpose vs. a COGS account - COGS Int'l Fee for instance? 2) I was required later to create an add'l "Receive Item" for this 'banking fee' - tie it to the bill, thus clearing - zeroing out - the Inventory Offset Account issue. Your thoughts? thank you.
I don't have the option to add bank fees/interest income one the front page of the reconcilation for the bank g/l account but I have it for a loan account for a client and was trying to find the answer to how to add that feature.
Thanks for reaching out. This post was originally geared for QuickBooks Desktop, but with the way you're wording your question, I'm wondering if you're using QuickBooks Online instead. QuickBooks Online has what could be considered a "front page" for reconciling, whereas QuickBooks Desktop has a window that pops up when you reconcile.The two work similarly when it comes to reconciling, but I'll give you resources for both.
In both cases, QuickBooks automatically gives you the option of fields for services charges and fees for account types that would have these things, such as bank accounts and credit cards. This isn't a feature that you need to toggle at all. If you're not seeing the fields, it may be that the account you're reconciling doesn't regularly have this kind of thing.
Here are some articles about reconciling in QuickBooks.
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