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Level 4

service fee

Where in QB DESKTOP would service fees be enter?

 

Example..

I purchased monograms from a company but they only accepted pay pal payments. So I pay them thrue paypal for $15 however when reconciling my bank statement I notice that the second to last page of my bank statements there is a transaction for $- 3.16 

 

I guess I'm a bit confused since this transaction has a Transaction Description  of paypal/vendors name / INTERNATIONAL TRANSACTION FEE.

 

I reconcile thrue qb desktop using banking - write check. 

1. who do I write the check to - the vendor or Paypal?

2. which account should these transaction fall in - expense,purchase of good,other charges?

 

Thank you for all the answers.

 

Are service fees and merchant fees the same?

Solved
Best answer 11-05-2019

Accepted Solutions
QuickBooks Team

Re: service fee

Hi there, Eve2019.

 

I'll provide the steps to enter the service fees. You'll have to write a vendor check for $15.

 

1. Click the Banking menu and then select Write Checks.
2. From the Bank Account field, choose where the money will be taken from.
3. On the Ending Balance field, it should the balance of the given bank account as of the date of writing the check.
4. Choose a payee name or whoever the check was issued for in the Pay to the Order of Field.
5. Enter the $15 under the Amount column.
6. Fill in the necessary information.
7. Click the Save and Close button.

 

You can put the $- 3.16 under Service charge when the time you begin reconcile.

 

desktop 888888888888888888888888888.PNG

 

Since purchased is a money out transaction, the account should be posted as expense account.

 

Service fee collected to pay for services related to the primary product or service being purchased. The service fee is usually added at the time of the transaction.

 

Merchant fees are money charged by a merchant service to a vendor for processing credit card transactions.

 

Please check this article for additional information about how the check works and how you can delete or void a check in QBDT: Create, modify, and print checks.

 

I'll be glad to help you if you have any other questions.​ Have a good day!

View solution in original post

QuickBooks Team

Re: service fee

Thanks for the details, Eve2019. I'm happy to clarify the process of recording your transaction.

 

You'll want to record the fees individually. As much as possible, you'll want to enter transactions based on how they show in your bank statement. This is proper recording, and it's easier to trace transactions like this.

 

As for the payee, you'll want to create a vendor profile for PayPal and select it as the payee on your check transactions since they charged you. Then, for the account, you can create an expense account and name it as PayPal Fees (depends on how you want to name it).

 

You're right. They shouldn't fall into your bank service fee account since these are PayPal charges. You can have your accountant check your transactions later on.

 

Please don't hesitate to ask more questions if you need more clarification on this. Have a great day!

View solution in original post

4 Comments
QuickBooks Team

Re: service fee

Hi there, Eve2019.

 

I'll provide the steps to enter the service fees. You'll have to write a vendor check for $15.

 

1. Click the Banking menu and then select Write Checks.
2. From the Bank Account field, choose where the money will be taken from.
3. On the Ending Balance field, it should the balance of the given bank account as of the date of writing the check.
4. Choose a payee name or whoever the check was issued for in the Pay to the Order of Field.
5. Enter the $15 under the Amount column.
6. Fill in the necessary information.
7. Click the Save and Close button.

 

You can put the $- 3.16 under Service charge when the time you begin reconcile.

 

desktop 888888888888888888888888888.PNG

 

Since purchased is a money out transaction, the account should be posted as expense account.

 

Service fee collected to pay for services related to the primary product or service being purchased. The service fee is usually added at the time of the transaction.

 

Merchant fees are money charged by a merchant service to a vendor for processing credit card transactions.

 

Please check this article for additional information about how the check works and how you can delete or void a check in QBDT: Create, modify, and print checks.

 

I'll be glad to help you if you have any other questions.​ Have a good day!

View solution in original post

Level 4

Re: service fee

Thank you for your response. It is more clearer now.

 

But I actually have two service fee transactions both different dates, quantities & vendors but same payment method to vendors-pay-pal.

10/7 -$3.16 

 10/15 -$2.40

= -$5.56 total service fee

 

Should the total 5.56 service fee be entered in the step reconcile window you provided even though they have different dates & vendors ?

 

Or should I write a check for individual transaction.

If so,  should check be written to Pay-pal or vendors' name?

 

(Service fee collected to pay for services related to the primary product or service being purchased. The service fee is usually added at the time of the transaction.) To which I agree is correct this bring up a different question/confusion.

I not sure who is charging me the service fee is it my bank or pay-pal.

 

because if its pay-pal collecting the service fee, I think I have to set up an account for these expense so It wont fall in with the with bank service fee.

 

QuickBooks Team

Re: service fee

Thanks for the details, Eve2019. I'm happy to clarify the process of recording your transaction.

 

You'll want to record the fees individually. As much as possible, you'll want to enter transactions based on how they show in your bank statement. This is proper recording, and it's easier to trace transactions like this.

 

As for the payee, you'll want to create a vendor profile for PayPal and select it as the payee on your check transactions since they charged you. Then, for the account, you can create an expense account and name it as PayPal Fees (depends on how you want to name it).

 

You're right. They shouldn't fall into your bank service fee account since these are PayPal charges. You can have your accountant check your transactions later on.

 

Please don't hesitate to ask more questions if you need more clarification on this. Have a great day!

View solution in original post

Level 4

Re: service fee

JessT - Got it thank you so much for the clarification.

 

ChristieAnn Thank you for all the great info.

 

 

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