How to account for deducted bank fees when matching downloaded deposits from Bank for customer payment in QBD

Lenaraiwa22 · ‎May 05, 2022

Hi all,

I am using QBD and am trying to figure out the easiest and correct way to match a deposit downloaded into QB via QBO file. I have an open invoice for the customer, lets say $100, and go to match the deposit from the bank feed. it shows the downloaded transactions and i can see the one for the client payment, however our bank deducts fees so lets say the amount showing is $90(bank fees are $10). When i click on add one to register, I have two options relevant "as a deposit suing the make deposits windows" and "as a payment on an invoice, using the receive payments window"

Now usually when entering in a payment manually, I make a payment from the invoice itself, which goes into accounts receivable and then make a deposit from the register. and here i would enter in the negative bank fee .

If i use the "as a payment on invoice, receive payments" I have to adjust the amount received to be the total amount so that the invoice is marked as paid and not missing the amount $10 for the bank fees. there is then no way to adjust that payment to reflect the fees as negative value (that i can find) and if i open it from the register it still doesn't allow to make the adjustment. I think i would like this way more if i can get it to work as it is faster.

if i use the option "as a deposit using make deposits" ( I have to first go to the invoice and mark it as paid so it will show up in the deposit window) when i click on the deposit in the popup make a deposit window, the payment shows up twice, once on the first like which is the bank transaction i am trying to match (with the lower value of $90 as was received by the bank) and the next line is the deposit from the invoice payment i did manually which is for the full amount. so then i have to go to the first line and change it to received from "account name" and the from account" bank fees" and then change the value to the negative bank fee amount. it seems counter intuitive to have to manually change like this?

If there is a way to factor in the negative bank fee without all the extra steps it would be great. thanks in advance for reading and any info you have.

AlexV · ‎May 05, 2022

Hi Lenaraiwa22!

Thank you for reaching out to us. I'd like to help you in matching your downloaded transaction to the ones you created in QuickBooks Desktop.

I know how convenient it is to be able to match downloaded transactions and adjust if needed especially if there are fees. Currently, the only way is to create a bank deposit and manually add the fee.

Follow these steps:

Record an invoice payment and deposit it to the Undeposited Funds account.
Go to the Banking menu and select Make Deposits.
In the Payments to Deposit window, select the payment you want to deposit, then select OK.
From the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
Add the fee on the next line as a negative amount.
Enter the details needed, then tap Save & Close.

Once done, you can now match it on your bank feeds.

I added some articles for more details on how to add and match Bank Feed transactions in QuickBooks Desktop and detailed steps on how to reconcile:

If you have other concerns regarding QuickBooks Desktop, please let me know. I'll help you record your entries and manage your data in the program. I'll see you again soon.

GE_Remodel · ‎April 17, 2023

Whats the answer here for QB online?

Carneil_C · ‎April 17, 2023

I'll lend a hand on how you can do the process in QuickBooks Online, @GE_Remodel.

First, we can create an expense account for the deducted bank fees. I'll show you how:

Go to the Bookkeeping menu and choose Chart of accounts.
Click New.
In the Account pop-up, select Expense from Account Type dropdown.
Select Bank charges from Detail Type dropdown.
Enter Name as Bank fees.
Tick Save and Close.

Then, resolve the difference between the invoice and the payment when matching transactions. Here's how:

Go to Bookkeeping, then choose Transactions and select Bank transactions.
Choose the bank account with the transaction.
Locate and select the relevant transaction on the For review tab.
Click Find match.
In the Match transactions window, select the appropriate transaction.
Select Resolve to open Add resolving transactions.
From the Category dropdown, select the Bank fees expense account you created.
Enter the Amount of the bank fee.
Tick the applicable Sales Tax.
Tap Save.

Alternatively, we can follow the steps in the Include bank or processing fees section of this article: Record and make bank deposits in QuickBooks Online.

If you have any other questions about managing your transactions, please feel free to comment below. I'll return here as soon as possible to help you again. Thanks for dropping by, wishing you a good one.

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How to account for deducted bank fees when matching downloaded deposits from Bank for customer payment in QBD