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Level 1

recording bank deposit online with sales tax and fees

I need help recording bank deposits from online sales with tax. These contain both sales tax and paypal or square fees. Please help with how to record these deposits.  Do I have to create an invoice?

2 Comments
QuickBooks Team

Re: recording bank deposit online with sales tax and fees

Welcome to the Community, @DandB7.

 

You'll be glad to know that you have the option to integrate your PayPal and Square accounts with QuickBooks Online (QBO). This way, you don't need to manually enter your sales transactions anymore. Let me guide you how to do it.

 

To integrate PayPal and Square, follow these steps:

  1. Log in to your QBO account at qbo.intuit.com.
  2. Open a new tab and go to appscenter.intuit.com.
  3. Search for PayPal or Square.
  4. Click on Get App Now.
  5. Follow the prompt instructions.

Read these articles to know more about the integrations of these apps:

Another option is to manually create an invoice or sales receipt with sales tax and process a bank deposit. But you need to set up a sales tax first.

  1. On the Plus (+) icon, click on Invoice or Sales Receipt.
  2. Fill in the necessary information and, don't forget to choose the correct sales tax on the drop-down below.
  3. Click on Save and Close.

You may process a bank deposit under the Gear icon and select the Payments or Sales Receipts.

 

Please leave a comment below or post again if you have any other concerns. I'll be glad to help.

Level 7

Re: recording bank deposit online with sales tax and fees

From banking menu, make a deposit.  Line 1) enter the sale amount using a revenue account.  Line 2) enter the sales tax amount and include the taxing jurisdiction in the name field.  Line 3) enter the credit card charge as a negative number using a credit card fee or bank charge expense account.

 

Note:  this method will not work if you are tracking sales by item.  If you are, you need to create and invoice and mark it taxable.  You then receive a payment then make a deposit.  Add the credit card fee as a negative to the deposit.

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