Etsy Fees

You can create a service item to record Etsy fees, Harty. Let me guide you through the process.

Follow the steps below to register the processing charges from Etsy:

1. Go to the Sales menu and select Products and Service.
2. Click the New button and choose Service.
3. Indicate what account to use in the Income account field.
4. Enter all the details, then Save and close. 

Additionally, I recommend consulting with your accountant about the expense account to use. This way, we maintain accurate bookkeeping.

Moreover, if you generated an invoice without fees, edit it to apply charges. I'll show you how.

1. Go to the Sales menu and select All sales or Invoices.
2. Locate the transaction and click View/Edit.
3. Add the Etsy fee to the next line item right after the sales.
4. Click Save and close. 

Once done, refer to this article if you need to match sales transactions with fees to bank feeds: Manually add service fees to invoices in QuickBooks Online.

Furthermore, you can run a report to monitor sales. To tailor it to your needs, check out this guide: Customise reports in QuickBooks Online.

After documenting the items and charges on invoices, do you require a hand in personalizing sales reports? Please know that you're always welcome to add the details to your reply. We'll be here to assist you.

Firstly, a big thank you for your help. Just to clarify, I receive a payment from Etsy every Monday that shows up in my QB, but Etsy has already taken the Fee, so that doesn't show up in my QB. Can I just go to the + icon and enter an expense?

Thank you Chris

Yes, you can definitely do that if you want to record the fee as a separate entry, Harty. However, I recommend adding it to the bank deposit so it matches the amount of the downloaded transaction from Etsy. Let's work together to log the Etsy fees on QuickBooks.

If you haven't done this yet, record the payment that you've received from Etsy into the Undeposited Funds account. I'll show you how:

1. Go to Sales and select Invoices.
2. Locate and click on the specific invoice.
3. Select View/Edit.
4. Click Receive Payment.
5. On the Outstanding Transaction, put a checkmark on the invoice.
6. Click on the dropdown arrow in the Deposit to option, then locate and select the Undeposited Funds.
7. Click Save and close.
   
   

After that, deposit the payment to the appropriate account and include the fee as a second line item by following these steps:

1. Click + New.
2. Select Bank deposit.
3. Under the Account dropdown, choose the bank account where the payment was received and ensure the date matches the invoice date.
4. From the Select the payments included in this deposit section, tick the box of the specific invoice to include it on the deposit.
5. From the Received From dropdown, choose the customer from whom the payment was received.
6. From the Account dropdown, select the category you use for tracking fees.
7. Enter the amount as a negative figure (for example, -£2.98).
8. Select Save and close.
   
   

Lastly, match this deposit to the downloaded Etsy payment.

Finally, reconcile your accounts by comparing the transactions from your bank statements to ensure accurate financial records.

Please notify us if you need further assistance managing your Etsy transactions by providing the details below. I'm always here to help in any way I can.