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Using QB online, Square & QB link and set the deposit (full amount charged) in QB on the square account I have set up there. The problem is that the fees charged from me are NOT linked in QB online. Is the only solution to do this manually? Seems a pain. Those fees are less regular than the payments as each CC may charge a different % - airline miles, having to enter the CC number if the swipe doesn't work, etc.
This is what I am doing.
I created a bank account called "square"
1) Create invoice for the customer
2) Click on the receive payment button
3) Then go in and add an expense that matches the fees in square
4) Then match the transaction for the deposit and create a "transfer"
Huge head ache, I am switching off of Square to another processor that deposits the funds in full and deducts fees after.
I own a restaurant and this has been a big issue for me since I have about 7 different delivery services like Uber Eats, Door Dash, etc. that all operate like Square in that they deduct their commission fee before depositing the funds in our account.
I'm newish to QBO and bookkeeping in general, so I'm not sure if the way I'm accounting for commission is correct. Basically, first I create a manual entry, logging the commission as 'sales' income. Then, I make a second entry logging that same amount as a 'commission' expense.
Anything wrong with doing it that way?
2nd question: Is it common to account for discounts and refunds given to customers? I thought it might be of value to track this data on my P&L so I used the same method as above. I manually entered it as income, then logged it as an expense. Is that standard?
Hi there, @LisaLMT,
Thanks for joining the conversation. I want to make sure you're able to record your fees correctly in QuickBooks Online.
At the moment, there isn't a direct option in QBO to record credit card fees. You'll need to follow steps so you can complete your work.
Step 1: Create the invoice.
Step 2: Receive payment.
Step 3: Enter a Bank Deposit for the fee to relieve the balance from Undeposited Funds account to bank account. (See screenshot)
That should get you on the right track, @LisaLMT. Being able to automatically record CC fees is a great idea we can add in QuickBooks Online, you can submit a product request to our developers.
Here's how you can send a request:
You can also submit your suggestion through this link: Customer Feedback for QuickBooks Online. I'll do the same thing on my end to reinforce your request.
Please let me know if you have any more questions about QBO. I'm here to lend you a hand anytime. Have a good day!
I use square and paypal for Credit card processing . Just switched to go payments. So DO i have to enter all the transactions that go with the deposit for square on one invoice then go receive payment. I'm totally new so I'm a bit confused. So I enclosed a pic of first electronic square deposit of 83.33. Do I do one invoice list all the clients that paid in that deposit, subtract the square fee and receive the payment of 83.88 out of undeposited funds?
Thank you for your screenshot.
If your Square transactions (payments and fees) are already posted in your actual bank account, you can just download and add them to your bank register in QuickBooks. It would double your work if you create invoices for those paid transactions.
I can see $83.88 on your screenshot, but I'm not seeing the $83.33. It appears to me that $83.88 is the actual amount that shows in your actual bank. We can follow that.
I'm just here if you have questions.