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Level 1

Customer processing fees

I have a customer that subtracts their own processing fee from their payment to me. 

Eg. I billed them $338.99 and they paid me $325.43

How do I clear the balance of $13.56 they didn't pay which goes towards their processing fee to keep things balanced?


2 Comments 2

Customer processing fees

Hello there, Cheryl.


I'll be right here to guide you on how to handle customer payments with processing fees. I will be putting all the needed steps below. If you haven't already, create a clearing account for the fee.


  1. Go to Settings ⚙ and select Chart of accounts.
  2. At the upper right, select New to create a new account.
  3. From the Account Type ▼ dropdown, select Bank.
  4. Choose Cash on hand for the Detail Type.
  5. In the Name field, enter “Clearing Account" or "Wash Account.”
  6. Click on Save and Close.


To get started, use the following steps:


Step 1: Create the customer invoice.


  1. Click the Plus (+) icon.
  2. Select Invoice.
  3. Enter the exact amount to be invoiced. In your case, an invoice amounting to $338.99. (Refer to this sample screenshot below)


Step 2: Receive the payment.


  1. On the invoice, click the Receive Payment button.
  2. Select the correct invoice on the Receive Payment screen.
  3. In the Deposit to field, choose Undeposited Funds.
  4. Click Save and close. (See screenshot attached)


Step 3: Enter a Bank Deposit for the fee to relieve the balance from Undeposited Funds account to bank account. (See screenshot)


  1. Click the QuickBooks Plus (+) icon.
  2. Select Bank Deposit.
  3. Mark the invoice payment you received previously from the Select the payments included in this deposit section.
  4. Expand the Add funds to this deposit section to add a new line item.
  5. Leave the Received From column blank.
  6. In the Account column, add the clearing account for the fee.
  7. In the Amount field, enter a negative fee amount.
  8. Make sure the deposit matches the net bank deposit amount.
  9. Click Save and close.


If you need anything else, please let me know in the comment below. I'll be right here to help you further with your sales entries.

Level 1

Customer processing fees

The money is already in my bank account so I don't need to do a bank deposit.  I have already processed the payment for the $325.43


What do I do with the $13 and change left over that is a balance owing on their account



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