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Larry K
Level 1

Merchant Deposit with fees

I hope this is the correct discussion topic for my question. On  2/1 we received a merchant deposit from our credit card processor in the amount of $268.37. Payments for the cards were from membership renewals which in reality totaled $460. Because it was the first of the month the card processor deducted their fees so that the $268 was what was deposited. I need to keep track of the membership renewal amounts in QBO, so my question is: how to I add the $460 in membership fees into QBO and show the fee charge correctly? The transfer has taken place from the merchant to our bank and from our bank to Quickbooks.

I'm sure I am not asking the question as clearly as I should, but I hope someone understands what I am trying to say and do!

Thank you in advance for your time and help.

Larry

Solved
Best answer February 05, 2021

Best Answers
Rose-A
Moderator

Merchant Deposit with fees

Thanks for getting back to us, Larry K.

 

Allow me to step in and help you with matching your deposits with fees in QuickBooks Online.

 

To answer your follow-up question, yes, you can create a separate invoice for each member to track their renewal in QuickBooks Online and follow the steps provided by my colleague above to match them. See the sample screenshot below.


z.PNG

 

To help you manage your invoices in QuickBooks, you can refer to this article: Create invoices in QuickBooks Online. This will provide you links on how to record payments manually as well as tips to make your financial reports accurate.

 

If you need further assistance with matching your deposits with fees or have other follow-up questions in mind regarding QuickBooks Online, please let me know. I'll stick around to help you out.

View solution in original post

3 Comments 3
LieraMarie_A
QuickBooks Team

Merchant Deposit with fees

You've come to the right place! I've got all the steps to make sure everything is accounted for, @Larry K.

 

If you receive a payment less than the invoice amount due to bank fees, we can use the Resolve Difference feature to account for the bank charge.

 

You can follow these steps below to create a Bank Charges account:

  1. Go to Accounting from the left menu.
  2. Choose Chart of Accounts.
  3. Click New.
  4. In the Account dialog, create an Expense account for Bank Charges, and give it a name, e.g Bank Charges or Bank Fees.
  5. Select Save and close.

 

You can refer to our guide on adding an account to your chart of accounts in QuickBooks Online for your convenience.

 

Once done, you can match the invoice with the bank transaction and use the Resolve Difference feature to record the bank fee. Let me show you how.

 

  1. Go to Banking on the left menu and choose Banking.
  2. On the Bank and Credit Cards page, make sure you have selected the Bank Account with the transaction.
  3. Locate the transaction with the amount of $268.37 in the For Review tab.
  4. Tap Find Match.
  5. In the Match transactions window, choose the checkbox of the appropriate Invoice.
  6. Enter the exact payment $460 in the Payment field.
  7. Tick Resolve Difference to open the Add resolving transactions fields.
  8. Click Add new transaction.
  9. From the drop-down list in the Category field, select the Bank Fees expense account you created.
  10. Enter a negative amount for the bank fee, e.g -191.63.
  11. Click Save and close.

    Here's an example:

 

Capture.jpg

 

Your transaction is now matched off against the invoice and the bank fees are accounted for.


As another option, you can follow our guide on entering a bank service fee while using a third-party merchant service. Then, match the downloaded transaction and the deposit you created in QuickBooks Online.
 

Feel free to visit our Banking page for more insights about managing your bank feeds.

 

If you have any other questions or clarifications, feel free to leave them in the comments below. I'll get back to you as soon as I can.

Larry K
Level 1

Merchant Deposit with fees

Thank you @LieraMarie_A for your quick response. This makes sense to me, but I have one follow-up question.

The amount received from the CC merchant is for six separate transactions from members paying their dues. That total equals $460 and then the fees ($191.63) are deducted and the balance is deposited to our account. I want to be able to track each individual members renewal in QBO, so do I create a separate invoice for each member (and what their renewal is) and then match all of them to the transaction when I do the review, and THEN resolve the difference?

Thank you again for your assistance and knowledge!

Rose-A
Moderator

Merchant Deposit with fees

Thanks for getting back to us, Larry K.

 

Allow me to step in and help you with matching your deposits with fees in QuickBooks Online.

 

To answer your follow-up question, yes, you can create a separate invoice for each member to track their renewal in QuickBooks Online and follow the steps provided by my colleague above to match them. See the sample screenshot below.


z.PNG

 

To help you manage your invoices in QuickBooks, you can refer to this article: Create invoices in QuickBooks Online. This will provide you links on how to record payments manually as well as tips to make your financial reports accurate.

 

If you need further assistance with matching your deposits with fees or have other follow-up questions in mind regarding QuickBooks Online, please let me know. I'll stick around to help you out.

View solution in original post

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