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Amy1075FMPR
Level 1

BANK MATCH FOR DEPOSIT COMBINED WITH EXPENSE (MERCHANT PROCESSING)

I have merchant services through Bank of America. On the 2nd of each month, they deduct fees from the previous month. If I have any credit card payments made on the 2nd of the month, the deduction for fees comes off of the payment. The bank feed shows the net amount (deposit minus fees for previous month). How do I match the bank feed to a deposit and expense item? The deposit has already been recorded based on the payments posted for that day.  What is the best way to handle this?  

 

Here are two examples:

Payment from client received on 4/2 $744.69

Payment posted to invoice and deposit recorded for $744.69

Fee processed (Bank Discount) on 4/2 for $1,349.62

Bank feed shows expense (Spent) of $604.93 (which is the deposit $744.69 less the fees charged of $1,349.62)

3 Comments
Jovychris_A
QuickBooks Team

BANK MATCH FOR DEPOSIT COMBINED WITH EXPENSE (MERCHANT PROCESSING)

Thanks for posting to the Community, @Amy1075FMPR.

 

You can add another line item under Add funds to this deposit to the bank deposit that you have recorded. To locate the deposit, you can run a Deposit Detail report and select the deposit item. There you can add the fee under Add funds to this deposit.

 

Here's how:

  1. Click the Magnifying glass icon on the top right.
  2. Type Deposit Detail report.
  3. Change the reporting period if necessary.
  4. Find and click the deposit.
  5. Go to Add funds to this deposit, and then select the expense account on the Account column and other necessary details. (Amount should be negative).
  6. Click Save and close.

The bank deposit total will be exactly the same as the For Review tab.

 

To learn more about the different tips in categorizing the downloaded bank transactions, you can refer to this link: Assign, categorize, edit, and add your downloaded banking transactions.

 

If you're about to reconcile your accounts, I've added an article that will guide you in doing it: Learn the reconcile workflow in QuickBooks.

 

Please let me know if you have more questions. I'm always here to help. Have a good one!

Amy1075FMPR
Level 1

BANK MATCH FOR DEPOSIT COMBINED WITH EXPENSE (MERCHANT PROCESSING)

Thank you. This works well with the net balance is positive. Is there any way to do it when the net balance is negative?  In other words, the fee is greater than the deposit, so it ends up being an expense.

GlinetteC
Moderator

BANK MATCH FOR DEPOSIT COMBINED WITH EXPENSE (MERCHANT PROCESSING)

Thanks for getting back to us, Amy1075FMPR.

 

Let me share additional information on how to handle a negative deposit in QuickBooks Online. In QuickBooks, the deposit amount should be more than zero. You can record the payment and then deposit it and then create an expense transaction for the fee.

 

Here's how to create an Expense:

 

  1. Click the +New button and select Expense.
  2. Select Payee.
  3. In the Category drop-down, select Bank Charges and enter the Amount.
  4. Select Save and close.

I have here articles you can check for future reference:

If you have any other questions, please feel free to add a comment below. I'd be glad to help.

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