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D
dane3
June 16, 2020
Question

How do I categorize deposits from my Credit Card Processing company?

  • June 16, 2020
  • 1 reply
  • 40 views
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1 reply

D
dane3Author
June 16, 2020

I have an E-Comm site that I run through WooCommerce. When a sale is processed on my website, the customer pays at that time via Credit Card. 

 

Once the order is complete, the sale gets recorded in Quickbooks.  I am categorizing that transaction as income from Sales of Product Income.  

 

A few days after the sale is recorded, I receive a cash deposit from my Credit Card Processing company into my bank account with the proceeds from the sale.  This is also being recorded as income from Sales of Product Income.

 

As an example: 

- A $100 order is placed on my website for SKU: 123.  That transaction is recorded in Quickbooks as $100 in income.  

- Two days later I get a deposit into my bank account for $95 ($100 sale minus transaction fees and shipping).  That deposit it also being recorded as income. 

- Result: A $100 order is showing as $195 in income in my books. My income is essentially being recorded as double what it actually is. 

 

How should I be categorizing both of these transactions (the sale and the deposit from the credit card processing company)? 

 

* It is worth noting that the deposits from the credit card processing company are not broken out by transaction, so if I sell $1,000 of product on my website in one day over 10 different sales, I just receive one deposit of the proceeds. 

 

 

 

 

R
RCVQuickBooks Team
QuickBooks Team
June 16, 2020

Thanks for providing us in-depth details of your deposit concern, dane3

 

If you have added the transactions in the Reviewed page, we can undo the deposits.  The deposit transaction will go back to the For Review tab.

 

Here's how:

 

  1. From the left menu, click Banking.
  2. Click Banking.
  3. Go to the Reviewed tab and locate the deposit transaction.
  4. Tick Undo.

 

Since $100 sales (minus transaction fees and shipping) are recorded in QBO, we can create a deposit minus the fee. This way, we lessen the total amount deposited by adding a negative amount for the fees in the line item when entering a bank deposit. This way we can match it to the downloaded transaction. 

 

Let me show you how:

 

  1. Go to the New Plus icon.
  2. Choose Bank Deposit.
  3. Under the Select the payments included in this deposit section, place a checkmark on the sales receipt.
  4. In the Add funds to this deposit section, choose an account for the bank fees, and enter the amount as a negative amount.
  5. Tap Save and close.

For more details about recording deposits, check out this article: Record and make Bank Deposits in QuickBooks Online. Then, go to Include a bank or processing fee section to learn more about adding fees in the Bank Deposit window. 

 

Once done, go back to the For Review tab to match the downloaded credit card transactions. Refer to this article to learn more: Add and match downloaded banking transactions.

 

I've got a link here that provides you with articles about managing your bank transactions: https://quickbooks.intuit.com/learn-support/en-us/banking/07?product=QuickBooks%20Online.

 

Fill me in if you have more questions about correcting bank deposits or any QBO related. I'm always here to help. Take care always. 

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