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Frequent Explorer *

How to bulk post Bank Merchant Fees

I do not track individual sales or invoices via QBO (it's not suitable for my eCommerce situation) but rather I have daily deposits from my merchant account (accounting for up to 200 sales) which I code as "sales income". It's impossible for me to keep up and adjust my daily deposit for the fees deducted from the deposit.

What is the best way for me to create an entry ONCE A MONTH for my merchant fees based off the summary I received monthly?

I found all kinds of things to reduce an invoice but again since I so not create invoices via QBO that's not an option.
I tried to create an expense or vendor invoice and pay it via a deposit to undeposited funds but QBO said I could not use that account to pay the expense/invoice. I also do not want it to create a auditing issue by creating a cash deposit to my real bank account

3 Comments
Established Community Backer ***

Re: How to bulk post Bank Merchant Fees

if the merchant processor is withdrawing the fee amount on a monthly basis, then that is what you do.  Pay an expense with an EFT check for that amount.

Frequent Explorer *

Re: How to bulk post Bank Merchant Fees

Thanks but that does not work for my situation.  

 

The fees are deducted from the daily deposits, it is never deposited in my account from the merchant.  They take it out of each transaction and once a day they transfer funds into my checking account.  Each is added to "deposit:  sales of product income"

 

Example:  Throwing out easy figures to calculate -

Dec 1 = 100 sales of $10 each = $1,000 less 2% fees per transaction ($20) = $980 deposited

Dec 2 = 150 sales of $10 each = $1,500 less 2% fees per transaction ($30) = $1,470 deposited

 

Once a month I run my report which shows during the month of December a total of $600 in fees were deducted from my daily deposits.  

 

At the end of the month I want to do one transaction.  It should be $600 in undeposited sales income used to pay $600 in merchant fees.    I tried creating a customer invoice for $600 for sales income and receiving the payment into undeposited funds, then paying an vendor invoice for merchant fees with those undeposited funds.  QBO will not allow "undeposited" funds to be used to pay a bill or expense created under vendors/expenses.  I really do not want to do a fake deposit into my checking account then a fake check to pay the merchant fees.  I could adjust every single daily deposit up and offset with merchant fees but to run that report daily to know the amount and update 30 deposits a month (actualy 60 since I have 2 different merchant accounts) just is not feasible.  

 

 

 

 

 

Established Community Backer ***

Re: How to bulk post Bank Merchant Fees


@cipgifts wrote:

 

 Once a month I run my report which shows during the month of December a total of $600 in fees were deducted from my daily deposits.  

 


 

Easiest is to post a journal entry: debit Fee Expense, credit Sales for the $600, dated last day of month

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