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Level 1

Record square transaction with an invoice

Hi, I know there is an addon for square, but I want to know how I can propertly record an square transaction with an invoice.

 

Let says the invoice is 200$ and square takes 2% for processing fee. In total I get 196$ in my bank account. How I can resolve the gap? How I can say the 4$ is a square expense. 

 

Thank you

4 Comments
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QuickBooks Team

Record square transaction with an invoice

Hi Mokadoka,

 

All your Square transactions will be downloaded in QBO, including the fees. Therefore, you won't need to creating anything in QBO. Just be sure that you have the correct mapping an account assignment, so the fees and the deposits will post correctly.

 

Your invoice will be paid in full, but you will have another transaction for the fee. Then, the net amount will be deposited into your bank account. All these transactions will be exported to QBO.

 

Please check out the article about syncing with Square. It explains about the setup, the things you need to do in QBO, and the mapping of transactions.

 

If you have additional questions, you can always go back to this thread.

Highlighted
Level 15

Record square transaction with an invoice


@Mokadoka wrote:

Hi, I know there is an addon for square, but I want to know how I can propertly record an square transaction with an invoice.

 

Let says the invoice is 200$ and square takes 2% for processing fee. In total I get 196$ in my bank account. How I can resolve the gap? How I can say the 4$ is a square expense. 

 

Thank you


To answer your question directly

 

use a sales receipt, an invoice is used when the customer will pay later

 

create a non inventory item called sq fee and select the merchant fee expense account on the item

 

line one: list the sale and gross (full) amount

line two: list the sq fee item, qty is negative one, and the fee amount

save

Highlighted
Level 2

Record square transaction with an invoice

This sounds great in theory - the way Square and Quickbooks deal with this is infuriating; it should just be an option in the reconcile window, where you select add/transfer etc.

 

Two things: one, if this is an immediate transaction, great, I will start recording them as sales receipts...however, I won't know the exact amount until I get my square payment, will I? What about rounding etc.

 

Two: can i go back and edit former transactions to turn them into sales receipts? I don't really want two forms of sales; I write invoices. Some may be paid immediately, some may not. I might email an invoice off to someone following, say, a remote transaction (remote computer support) and get a call back in 15 minutes for them to pay me. Or say they drop by with their card.

 

I may assume they're paying by cheque, then they produce a card. How do i convert an invoice previously written? 

The principle sounds good, but how will this work? This is a HORRIBLE SYSTEM. It should not be this hard.

 

Highlighted
QuickBooks Team

Record square transaction with an invoice

Thanks for taking the time to share your experience, QED.


I'll give details about the process and the solution that you can use. When you sync your Square app with QuickBooks Online, transactions are automatically downloaded as invoices or payments.

If you want to record an invoice in QuickBooks Online, then you'll want to do the following:

 

  • Create a receive payment once your customer paid the invoice. 
  • Deposit the payment and include the processing fees.
  • Match the deposit to the Square transaction downloaded in the Banking page.

 

To create a receive payment for the invoice entered in QuickBooks, make sure to deposit the amount to the Undeposited Funds account.

 

Here's how:

 

  1. Go to + NewReceive Payment.
  2. From the Customer drop-down, choose the customer's name.
  3. Select the Payment date, Payment method, and choose Undeposited Funds account from the Deposit to drop-down list.
  4. Under the Outstanding Transactions section, put a check mark on the invoice you want to pay.
  5. Click Save and close.

Once done, let's record a bank deposit to include any processing fees by following these steps:

 

  1. Go to + NewBank Deposit.
  2. Select the bank account where you want to deposit the money.
  3. In the Select the payments included in this deposit section, put a check mark on the payment you want to deposit.
  4. Under Add funds to this deposit, select the customer's name from the Received From column.
  5. Select an expense account from the Account column, and enter the fee as a negative amount.
  6. Click Save and close.

Finally, match the deposit to the payment posted in the Banking page. 

 

Here are the steps:

 

  1. On the left panel, click Banking.
  2. Go to the For review tab.
  3. Find the square payment, and click the Match link. 

Please see these sample screenshots for a visual guide:

 

 

 

 

I'm adding these articles for reference:

 

 

When you're ready to reconcile the account, you can find the instructions here: Reconcile an account in QuickBooks Online.

 

Should you have more questions about Sync Square with QuickBooks Online or recording the transactions, please let me know. I'm just a few clicks away to help you some more. 

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