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cvmom73
November 26, 2018
Solved

Square processing fee question

  • November 26, 2018
  • 2 replies
  • 6 views

I need help with entering sales from square. I have the bank feeds enter deposits automatically. I need a journal entry to enter the square fees, discounts from sales, sales tax collected, tip income collected and gross sales. New to this and I dont want to enter incorrectly. Thank you

    Best answer by Charies_M

    Hi, cvmom73.

     

    Allow me to give more details about entering square fees and correcting past deposits in QuickBooks Online (QBO).

     

    If you're using online banking when adding deposits, you can just undo the deposits from the In QuickBooks tab. Once done, these transactions will be transferred to the For Review tab.

     

    Here's how:

    1. From the left menu, click Banking.
    2. Click Banking.
    3. Locate the deposit transaction and click Undo.

    Once you record all the transactions correctly, you can now start matching downloaded transactions. Refer to this article to learn more: Add and match downloaded banking transactions.

     

    In addition, to lessen the total amount deposited, you can add a negative amount for square fee in the line item when entering bank deposit.

    Let me show you how:

    1. Go to the plus icon.
    2. Click Bank Deposit.
    3. Add the square fee (negative amount) to the line item.
    4. Click Save and close.

     I'll be around here in the Community if you have more questions about correcting bank deposits. I'd be happy to help.

    2 replies

    john-pero
    john-pero
    Level 12
    November 26, 2018

    "I need a journal entry"

     

    No, no, no you don't. You need daily sales receipts for items and taxes , etc and deduct the fees for net deposit either on the sales receipt or better in the actual deposit since you will be off if you just try to take the percent off of gross and forget the transaction fees.

     

    If you are using the square program for restaurants (You I fixated tips) then if you sync it with QB rather than just the deposits in bank I g then the sales, taxes, tips, should all sync over to QB

     

    And turn off the auto deposit recording. You need to review them before accepting, really

    C
    cvmom73Author
    November 26, 2018

    Thank you, I will do this moving forward. How do you suggest I correct the past deposits? 

    C
    Charies_MAnswer
    Level 9
    November 27, 2018

    Hi, cvmom73.

     

    Allow me to give more details about entering square fees and correcting past deposits in QuickBooks Online (QBO).

     

    If you're using online banking when adding deposits, you can just undo the deposits from the In QuickBooks tab. Once done, these transactions will be transferred to the For Review tab.

     

    Here's how:

    1. From the left menu, click Banking.
    2. Click Banking.
    3. Locate the deposit transaction and click Undo.

    Once you record all the transactions correctly, you can now start matching downloaded transactions. Refer to this article to learn more: Add and match downloaded banking transactions.

     

    In addition, to lessen the total amount deposited, you can add a negative amount for square fee in the line item when entering bank deposit.

    Let me show you how:

    1. Go to the plus icon.
    2. Click Bank Deposit.
    3. Add the square fee (negative amount) to the line item.
    4. Click Save and close.

     I'll be around here in the Community if you have more questions about correcting bank deposits. I'd be happy to help.

      T
      tmgr
      February 18, 2020

      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?

      B
      Bosskoss
      May 18, 2020

      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?

       

       

      J
      JamesDuanTQuickBooks Team
      QuickBooks Team
      May 18, 2020

      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!

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