Banking fees

Thanks for reaching out to us, @Evergreen 2021. I'll help you properly account for the bank fees when matching transactions in QuickBooks Online (QBO).

If you haven't yet, create an expense account for the bank fees. Here's how:

1. Go to the Gear icon and select Chart of Accounts.
2. Click New.
3. Select Expenses for the Account Type, then Bank Charges for the Detail Type.
4. Enter a Name.
5. Click Save and Close.

Then, resolve the difference between the invoice and the payment when matching the transactions. To do that:

1. Go to Transactions, then Bank Transactions.
2. Select the bank account with the transaction.
3. Locate and select the relevant transaction on the For Review tab and click Find Match.
4. In the Match Transactions window, tick the checkbox for the appropriate invoice.
5. Select Resolve to open Add resolving transactions.
6. In the Category dropdown, select the Bank Fees expense account you created.
7. Enter the Amount of the bank fee, then Save.

Your transaction is now matched against the invoice, and the bank fees are accounted for.

Additionally, it's a good practice to reconcile your accounts monthly to ensure they correspond to your bank statements. Doing so guarantees that they are balanced and accurate.

Stay in touch whenever you have further questions about the bank fees. I'm available 24/7 to assist. Keep safe, and have a good one.

Thank you for your response. The situation is that I have two transactions on my statement $4,943.87 and $143.87 separately. I categorize the $143.87 as merchant fees. But I'm not sure how to resolve the difference in the $4,943.87 of which $4,800 is for an invoice. Should I create a liability account since these funds are then withdrawn separately and not income or how do I resolve this? Thank you for all your insight

Hello there, @Evergreen 2021.

Allow me to help you resolve the difference between your transactions so your accounts stay balanced.

You don't need to create a liability account to resolve the difference. You can simply follow the steps provided by my colleague above to resolve the difference between the invoice and the deposit. I'll reiterate the steps and provide screenshots for your guidance. 

1. Select the transaction. Then, click Find match.
2. Click Resolve.
3. In the Category dropdown, select the Bank Fees expense account you created.
4. Enter the Amount of the bank fee, then Save.

Once you've finished the process, you'll resolve the discrepancies between your transactions. Then, you'll be left with a zero difference.

For future reference, I'll leave this helpful resource for information on reconciling your accounts to ensure they're balanced and accurate: Learn the reconcile workflow in QuickBooks.

For any further clarification or concerns regarding resolving differences in QuickBooks, please don't hesitate to leave a reply. I'm here to help you out and make sure you're on the right track. Keep safe.