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Adjusting undeposited funds for merchant fees when making deposit to bank

Created invoice for services rendered

Invoice was paid using credit card (Square)

Received payment on invoice, funds went into undeposited funds

Need to transfer funds into bank, adjusting for merchant service fees

Where is the adjustment made?


Thanks

EJ

Solved
Best answer 09-09-2019

Accepted Solutions
Highlighted
Moderator

Hi EJ, Let me help you record the merchant service fee. W...

Hi EJ,

Let me help you record the merchant service fee.

We can add the service fee when we create the deposit. We'll need to make sure it is entered as a negative amount.

First, we'll need to create an account to associate all the service fees. Here's how:

  1. On the left-panel menu, click Accounting and go to the Chart of Accounts tab.
  2. Click the New button and select Expenses in the Account Type field.
  3. Select Bank Charges in the Detail Type field.
  4. Enter your desired account name in the Name field.
  5. Click Save and Close.

Now, let's create a deposit for the payment and the service fee:

  1. At the top, click the Create (+) menu and select Bank Deposit.
  2. Choose a bank account in the Account field.
  3. Under the Select the payments included in this deposit section, put a check mark on the payment.
  4. Go to the Add funds to this deposit section, and enter the customer's name under the RECEIVED FROM column.
  5. Under the ACCOUNT column, enter the expense account.
  6. Under the AMOUNT column, enter a negative amount of the service fee.
  7. Click Save and close.

You can always visit us in the Community if you need anything else.

View solution in original post

1 Comment
Highlighted
Moderator

Hi EJ, Let me help you record the merchant service fee. W...

Hi EJ,

Let me help you record the merchant service fee.

We can add the service fee when we create the deposit. We'll need to make sure it is entered as a negative amount.

First, we'll need to create an account to associate all the service fees. Here's how:

  1. On the left-panel menu, click Accounting and go to the Chart of Accounts tab.
  2. Click the New button and select Expenses in the Account Type field.
  3. Select Bank Charges in the Detail Type field.
  4. Enter your desired account name in the Name field.
  5. Click Save and Close.

Now, let's create a deposit for the payment and the service fee:

  1. At the top, click the Create (+) menu and select Bank Deposit.
  2. Choose a bank account in the Account field.
  3. Under the Select the payments included in this deposit section, put a check mark on the payment.
  4. Go to the Add funds to this deposit section, and enter the customer's name under the RECEIVED FROM column.
  5. Under the ACCOUNT column, enter the expense account.
  6. Under the AMOUNT column, enter a negative amount of the service fee.
  7. Click Save and close.

You can always visit us in the Community if you need anything else.

View solution in original post

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