How do you enter a payment that has bank fees deducted like a wire?

Thank you!

Hi - I've been following the steps that you recommend in your post.  When I do, the deposit shows correctly, net of the fees.

At the same time, I then have separate debits for those same fee amounts which show up as payments in the bank reconciliation (duplicates) that I then have to delete.

Not sure what is happening here.

thanks.,

QBProadvisor - Andrea

Hello there, @ibizconsult.

Thanks for following the steps shared by my colleague and letting us know of the result. Allow me to help you find where the duplicate payments came from.

Before proceeding, let me share some information on why there are separate debits for the same fee on the bank reconciliation This can happen when fees are added twice.

For example, there’s already one entered in the bank register. Then another fee is recorded in the Service charge section on the Reconciliation page.

In QuickBooks Online, there's a way to see who made changes to your account. The Audit Log Report gives you a clearer picture of your transaction history.

Opening the report will only take a couple of minutes. I’m here to show the steps.

1. Go to the Gear icon at the top of your company to choose the Audit Log.
2. Click on the drop-down for Filter to sort the data.
3. In the Events section, make sure to select the Show All Events option and tap the Apply button.
4. Hit the View link to check who added the entries.
   

For more details about the feature and how it can help your business track any type of change or event in the company file: Use the audit log in QuickBooks Online.

Additionally, I'm adding a link that contains detailed instructions on how to include a service fee for products or services you sell to customers: Add service fees manually to invoices. 

Keep in touch if you need assistance entering a payment with bank fees. I’ll jump right back in to help and make sure you're taken care of. Enjoy the rest of the day. 

Do you still need help with this?

Hi,

When I apply the bank fees, it's not being recorded in the foreign currency. It is therefore, applying to the home currency account. How can this be rectified?

Happy to help you rectify the currency in your account, @sramadhar.

I have steps to take to ensure that the bank charges apply in the foreign currency in QuickBooks Online. This way, your customer report and books are accurate. 

Let's ensure that the customer uses the correct foreign currency in their profile. This way, the bank fees will apply to that currency. To check, follow the steps below: 

1. Go to the Sales tab and choose Customers. 
2. Select the customer name in the list and click the Edit button. 
3. Check the customer currency in the Payment and billing section. 
4. Change the details if necessary and click Save. 

Once done, re-record the bank fees to apply the appropriate currency. See the sample screenshots below for your reference. 

Check out this article below on how to exchange rates from IHS Market and split foreign transactions in QuickBooks: 

• Add transactions in a foreign currency
• Learn about Multicurrency in QuickBooks Online

Feel free to get back to me if you have a follow-up question about your currency. I'm always ready to work with you again. Please stay healthy and safe, sramadhar.

These steps no longer work since update how do I do it now. The bank deposit no longer allows me to input fees like direct deposit or rental...

Hi there, TriCoast.

Let me share some information about recording bank charges in QuickBooks Online.

You can still enter bank charges or fees along with customer payments in the program. After you select the existing payment, you'll have to enter the charges as a negative value in the Add funds to this deposit section. I'll show you   how:

1. Click the + New button.
2. Choose Bank Deposits.
3. Select the payment you want to deposit.
4. Enter the amount of the fee charge as a negative amount in the Add other funds to this deposit section.
5. Select the appropriate expense account to track the fees.
6. Click Save and close to record the transaction.

Alternatively, you can enter the fee as a journal entry in the program. Here's how to do it:

1. Click the + New button.
2. Choose Journal Entry. 
3. Enter the Journal Date.
4. On the first line, select Trade and other receivable or Accounts Payable account, then enter the amount and customer.
5. Select the expense account you use for tracking charges and fees on the second line, then enter the amount.
6. Click Save and Close.

Once done, you can now to settle the open invoice with the journal entry:

1. Go to the Sales menu.
2. Select the All Sales tab.
3. Locate the invoice which has incurred a fee.
4. Select Receive payment on the top right of the invoice.
5. Under the Receive payment page, tick the invoice and the journal entry checkboxes.
6. Make sure the amount received is correct (total invoice amount - bank charges = net amount received)
7. Click Save and close.

Lastly, here's are some articles that will help you manage your bank deposits:

• Record and make bank deposits
• Deposit payments into the Undeposited Funds account

Drop me a comment below if you need more help in entering your other transactions. I've got you covered.