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Hi cvmom73 - In this thread, your questions of how to record ALL parts of your Square deposit doesn't seem to be answered. I know how to record the gross sales, processing fee and net deposit, but I can't figure out how to record the Sales Tax since Quickbooks won't let me use the account I believe to be the right one. Did you figure out what account to use for Sales Tax when recording your deposit from Square?
Hello,
We are having a similar issue with recording sales from Square and other platforms. Any luck with a solution (journal entry?) on how to track gross sales, sales tax, and fees from a bank deposit from Square?
Hello Bosskoss,
When managing transactions from Square and other platforms, they have to go through the Banking page. From there, they'll be added or matched to transactions on your QuickBooks register.
Before the transactions (Square and other platforms) reached or cleared on your bank, the amounts were usually deducted by the service fees. Hence, the amounts are in the Banking page are lesser than what you have on your QuickBooks. With that said, we have a process in QuickBooks on how to deposit the sales transactions that will match to the Banking page.
Under the Step 2 on this article, you can include the processing fee: Record and make Bank Deposits in QuickBooks Online.
After creating the deposit, that's the time we can match the transactions.
Feel free to get back to me if you have additional queries on how manage these transactions. Have a great day!
Hi, I need help with recording sales with square and the processing fees. According to the earlier replies, I added the invoice amount as the received payment then I tried to record processing fee as a negative amount in the "add fund to this deposit" to match it with my bank account. But QB does not accept that and says that the amount must be greater than 0.
This is getting really frustrating! I am searching, watching videos, reading... and still confused.
I am from Canada and wonder if there is any difference here.
Could you please add screen shots to your reply or a video?
Thanks for joining in this conversation, @Mara. There's no difference in recording transactions in QuickBooks Online. I have a step-by-step guide in recording the processing fee to make sure it matches your bank feeds.
For instance, you have a $50 invoice and a $2 processing fee, which gives you a $48 net bank deposit. You'll need to record an invoice showing the full amount first, then receive the payment with the same amount as the invoice.
Step 1: Create a customer invoice
Step 2: Receive the payment
Then, deduct the processing fees in the Bank deposit window. Don't enter zero to avoid getting error when you deposit the payment. Instead, enter a negative fee amount. Here's how:
For future reference, read through this article: Add and match downloaded banking transactions. It helps you learn about how to review your bank feeds transactions to make sure they're added to your books.
Feel free to message again if you need additional assistance. We're always delighted to help you more.
Thank you for the reply Katherine.
I cannot do that because QB does not accept a negative amount and a pop up says the amount must be more that 0.
I am surprised how it works on your system and not on mine!
I have already connected the Square app but it does not update the fees. I contacted chat support and they said that Square must fix the app so that all the Square fees update automatically. That is how it will be solved.
What you are saying is different and I am getting more confused!
Hey Katherine,
I do appreciate the time that you put into explaining everything.
I tried it again and it worked this time. I think I did the same thing last time, probably not!
I am happy that it is working now. Thank you!
I have a question about the Square fee. I have an expense account for Square Fees. Should I record Square fees separately in that account? I added the negative amount in Square Fees at the invoice (like you said) but it did not change anything in this account.
I'm glad that it worked now, @Mara.
Yes, you can record the processing fees under the Square fees expense account. There's no need to create a new one. If you'll want to edit the account, find it from the Chart of Accounts page, and select Edit from the Action column.
Let's first run the Square Fees Account QuickReport to verify if you are able to save the transaction.
Here's how:
Once done, it will show the amount of the processing fee. Otherwise, you'll need to recreate the transaction. You can follow the same steps provided by my colleague, katherinejoyceO.
I've got you here an article to learn more about common Chart of Accounts tasks: Understand the Chart of Accounts.
If you have other questions or concerns, please let me know in the comment section. I'll be here every step of the way. Have a good one.
Hi Liera,
Thank you for the reply. That was really useful.
I ran the report and I found out that I have 2 square fees for each transaction! 1 is created automatically by connecting the square app and the other I created based on the instructions Katherine provided. I think this is not right. How can I avoid the duplication?
When I follow your instructions it seems easy but when I click bank deposit, it only brings up an alternative invoice and not the one that I need to add the square fee to. Do you know how I would select the correct invoice to add the bank deposit too?
Hello, squishy_jelly.
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:
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:
Once done, let's record a bank deposit to include any processing fees by following these steps:
Finally, match the deposit to the payment posted in the Banking page.
Here are the steps:
I'm adding these articles for reference:
I'm still here to help you more if there's anything else you need. Just drop a comment below. Wishing you all the best!
Sorry it has taken me so long to reply... I had a baby.
I have again followed your instructions. Square is automatically linked to the account so the grouped deposit is already under the for review section, so I don't think I need to receive payment or it will make a duplicate. Is that correct?
Your instructions for grouping have a line that says I don't need to combine downloaded transactions because of the above but it is still minus the processing fee.
I should be able to do the recording the bank deposit step but it doesn't appear with the multiple invoices from multiple customers that I need to link the bank deposit too and therefore can't progress past this step. I have selected the correct bank account, correct date and still the invoices that I want to link it to do not appear. We use square for multi day events where I will always have multiple customer invoices to group to the automatically deposited payment.
Hopefully this additional info helps.
The only way I can get it to reconcile is by the attached image. Is this incorrect or is this ok?
It's all right, @squishy_jelly.
Matching multiple invoices and adding processing fees in your QuickBooks Online is my absolute priority.
Receiving payments and depositing the funds will not create a duplicate. You'll want to collect the payment first, so the multiple invoices will appear on the Deposit page. From there, you can now add the processing fees with the negative amount. You can follow the complete steps outlined by AileneA above to accomplish this. You may also refer to the sample screenshots for your reference.
Once done, you have an option to run your Chart of Accounts to review the deposit you've created. Then, reconcile your account whenever you're ready.
In regards to the last sentence in your reply, could you please re-attach the image? This way, I can provide accurate information and answer.
Furthermore, feel easy to click these articles underneath about fixing some reconciliation issues and other banking topics.
Let me know how else I can help with your account. I'd be more than glad to assist. Be wary.
LIsa, what if there is no invoice? I run a restaurant and deposits are automatic. I linked my bank account to Quickbooks and I have all of the deposits. How do I enter/account for the processing fees which are pulled prior?
I have been entering the the Square payments with the gross amount and (the client's actual billing amount) adding a separate line item for the fee. This was it shows the gross amount in Square income and the fee expense is reflected in the expense account. Is this correct?
Good evening, @kevynq.
Thanks for chiming in on this thread. Let me point you in the right direction to get this resolved as soon as possible.
The best route would be to consulting with your accountant to be sure this is recorded properly or if you need to make some changes. If you don't have one, check out the link to find one near you.
Reach back out if you have any more trouble in your QuickBooks Online account. We're always here to lend a helping hand. Have a splendid day!
How do you track your CC charges and bank fees then? I would think you need an account to create reports so you can write these fees and charges off no?
I'm here to share some info on how you can track CC charges and bank fees, @Tamalam.
If you want to track the charges separately, we can create an expense or check in your account.
To record an expense, here's how:
If you want the charges to be included in the payments received from the customer, you can create a bank deposit. Then, enter the charges as a negative amount. For detailed steps, please utilize this article: Record and make bank deposits in QuickBooks Online.
I'm also adding these resources you can utilize to help manage your transactions in QuickBooks:
If there's anything else that I can help you with tracking CC charges and bank fees, feel free to leave a comment below. I'll be around to assist you further. Wishing you the best.
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