If you have an active QuickBooks Payments account, you can record merchant deposits and fees and track merchant transactions in QuickBooks Desktop.
Access Merchant Service Deposits screen
To access the Merchant Service Deposits screen, go to the Banking menu then select Record Merchant Service Deposit.
The screen has the following tabs:
- Add Online Payments: Shows payments that could not be matched to an existing invoice in QuickBooks. You can manually add these payments to be recorded in your bank account.
- Match existing payment by selecting Add Payment under the Actions column or by selecting multiple payments then Add Selected Payments.
- After adding a payment, you have the option to create an invoice by selecting Need Invoice? link. If you create an invoice here, you will need to apply the payment to the invoice by going to the Customers menu then Receive Payments.
- Ready To Record: Once all the transactions in a batch are matched and recorded, the batch will show up on this tab and you can record the batch as a deposit. If all the transactions in a batch have not been recorded, you will not be able to record the batch and will get the message Transactions Not Added.
- Recorded: Lets you to view and monitor transactions that were successfully recorded.
- Errors: Displays transactions that you need to manually record in QuickBooks. If one or more transactions in a batch are in this tab, the batch will not be recorded. This is to ensure that the amount in QuickBooks matches the amount reflected on your bank statement.
Configure deposit and fees account settings in QuickBooks Desktop
Before you can download your deposits and fees, you need to choose an account where transactions will be downloaded to and an expense account to assign the fees to. This is typically the same bank account created in QuickBooks Desktop to reflect the actual bank account your funds are being deposited to and fees are being withdrawn from.
To change the deposit settings:
- Go to the Banking menu, then select Record Merchant Service Deposits.
- Select Change your deposit settings link on the lower left.
- In the Merchant Service Deposit Settings window, update your information as needed:
- Allow creation of new invoice after you apply a payment: Selecting this checkbox lets you create an invoice if there hasn't been one created yet for a specific transaction and customer.
- Your Bank for Deposits: Use the drop-down menu to choose the banking institution where you would like your money deposited.
- Memo: Use this field to add a default memo to be included on your merchant service transactions.
- Your Fees Account: Use the drop-down menu to choose the account type to apply to your fees. Consult your accountant if you’re not sure which account to use.
- Your Bank for Fees Withdrawal: Use the drop-down menu to choose the banking institution from where you want your fees withdrawn.
- Show Welcome Screen: Select this checkbox to view the Welcome screen every time you open Merchant Service Deposits.
- Select Save Settings.
Record deposits and fees manually
- In QuickBooks, go to the Banking menu then select Make Deposit.
- Highlight the appropriate items to be reconciled.
- Select Make Deposits to move the items to the bank account and complete the reconciliation.
To enter the missing fee, you need to enter a corresponding bill as well:
- Create the bill.
- In QuickBooks, go to the Vendors menu then Enter Bills.
- In the Enter Bills window, select the Vendor drop-down and choose the vendor assigned for Intuit merchant service account. (or Add New if it is not created yet).
- Ensure the date is the same as the date of the fee.
- Ensure the proper expense account is listed in the Account field.
- In the Amount Due field, enter the amount of the fee.
- In the Account column, select the appropriate Expense account.
- Select Save and Close.
- Pay the bill.
- Go back to the Vendors menu and select Pay Bills.
- Place a checkmark next to the bill you just created. Note: If there are multiple bank accounts, make sure to select the Account drop-down and choose the bank that the fees were withdrawn.
- Select Pay Selected Bills then Done in the Payment Summary window that appears.
QuickBooks for Mac
Merchant Service deposits and fees will need to be manually recorded as this feature is not available in QuickBooks for Mac.
- Go to the Customers menu then select Receive Payments.
- Enter the transaction.
- After receiving the payment, go to Banking then Make Deposits.
- Select all the payments in the batch and select Save Close.
If you need additional assistance in making manual entries in QuickBooks, contact us.
Error: In order to make a deposit, you need a valid expense account
This error occurs due to insufficient user permissions in QuickBooks Desktop. Note that all online payments are downloaded through Record Merchant Service Deposits. When you select Get Online Payments, QuickBooks will also try to open this window.
To resolve this error, the QuickBooks administrator needs to give the user’s role in the following permissions:
- Chart of Accounts
- View Account Balance