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Level 1

Square processing fee question

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?

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Level 1

Square processing fee question

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?

 

 

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Moderator

Square processing fee question

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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Level 1

Square processing fee question

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? 

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QuickBooks Team

Square processing fee question

 

 

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

 

  1. Click the +New menu.
  2. Select Invoice, then enter the exact amount ($50) to be invoiced.
  3. Click Save. See screenshot below: 

50.JPG

 

Step 2: Receive the payment

 

  1. While you're on the invoice page, click the Receive Payment button.
  2. Choose Undeposited Funds in the Deposit to field.
  3. Click Save and close. See screenshot attached:

receive50.JPG

 

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: 

 

  1. Go back to the +New menu, then select Bank Deposit.
  2. Mark the invoice payment you received previously from the Select the payments included in this deposit section.
  3. Expand the Add funds to this deposit section to add a new line item.
  4. In the Received From column, enter the processing fee as a vendor, then add an expense account for the fee in the Account column.
  5. In the Amount field, enter a negative fee amount (-$2). 
  6. Ensure that the deposit matches the net bank deposit amount.
  7. Click Save and close. See screenshot below: 

processing fee.JPG

 

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. 

Highlighted
Level 1

Square processing fee question

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!

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Level 1

Square processing fee question

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.

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QuickBooks Team

Square processing fee question

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:

  1. Go to Accounting and select Chart of Accounts.
  2. In the Filter by name field, type in "Square Fees."
  3. Select Run report from the Action column.
  4. Modify the reporting period.
  5. Click Run report.

 

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.

Highlighted
Level 1

Square processing fee question

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?

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