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calivalley
Level 1

How to enter sales with connected fees?

I do light bookkeeping for a small Internet provider. When someone purchases internet data, we use a 3rd party to process the payments. They charge us fees to do so, then deposit the net profit into our banking account. My question is, when recording the sales into quickbooks, do I only need to record the net sales, or do I need to do some type of journal entry to show the original sale amount, less the fees? Say someone purchases $10, we get charged $1 fee, so the processing company deposits $9 into our bank account. Can I just record the $9, or do I need to show the original amount less fees? 

 

Thanks in advance!

Solved
Best answer June 10, 2021

Best Answers
KlentB
QuickBooks Team

How to enter sales with connected fees?

Thanks for getting back to us, calivalley.

 

It would depend on how you'd like to manage your books. If you want to have a detailed breakdown in your reports, I'd suggest creating each transaction individually. Although, you can also combine them in a single sale receipt since you consolidate your sales in real life.

 

In addition, you may use the Service or Other charge option to classify the fees from your sales. Feel free to follow the steps provided by my colleague above in setting up the item. When you're ready, here's how to create a sales receipt:

 

  1. Go to the Customers menu.
  2. Choose Enter Sales Receipts.
  3. From the Customer: Job drop-down menu, select a customer or job.
  4. Fill in the relevant information at the top of the form like the transaction date and sales number.
  5. Select the appropriate payment method.
  6. In the detail area, enter the item that has been sold.
  7. On the next line, enter the item you've created for the fees. Make sure that amount of the fee is negative so it will be deducted from the total sales amount.
  8. Click Save & Close.

I also encourage checking our Accounts Receivable Workflow Guide to learn the different ways in tracking customer transactions in QuickBooks Desktop.

 

Fill me in if you need more help in entering your other business transactions. I'm always here to back you up.

View solution in original post

3 Comments 3
Giovann_G
Moderator

How to enter sales with connected fees?

Welcome to the Community, calivalley.

 

I can guide you in handling the service fee.

 

You can record the original amount and then add another line item for the service charged in QuickBooks Desktop. Please ensure that you already set up a service item.

 

Here's how to create an item:

 

  1. Go to the Lists menu, then select Items List.
  2. Click the Item dropdown, then choose New.
  3. Select the type of item you want to create.
  4. Fill out the item field, then ensure to choose an expense account in the Account dropdown.
  5. Once done, hit OK.

Once done, create a sales receipt with the original amount and add another line for the charge with a negative amount. This way you can match the deposit when it appears in your bank register.

 

For your reference, you can refer to this guide for the detailed steps: Add, edit, and delete items.

 

Feel free to check this handy material for more insight: Add and match Bank Feed transactions in QuickBooks Desktop. This contains helpful information in handling bank feeds transactions.

 

Reply to this post if you have further questions about the connected fees. I'm always here to help you. Have a nice day!

calivalley
Level 1

How to enter sales with connected fees?

Thank you for the help! I have multiple sales that are then combined & deposited (less fees) the following day. Is it ok to combine these on one sales receipt? Also, I'm not sure what item to use to classify my sales?

KlentB
QuickBooks Team

How to enter sales with connected fees?

Thanks for getting back to us, calivalley.

 

It would depend on how you'd like to manage your books. If you want to have a detailed breakdown in your reports, I'd suggest creating each transaction individually. Although, you can also combine them in a single sale receipt since you consolidate your sales in real life.

 

In addition, you may use the Service or Other charge option to classify the fees from your sales. Feel free to follow the steps provided by my colleague above in setting up the item. When you're ready, here's how to create a sales receipt:

 

  1. Go to the Customers menu.
  2. Choose Enter Sales Receipts.
  3. From the Customer: Job drop-down menu, select a customer or job.
  4. Fill in the relevant information at the top of the form like the transaction date and sales number.
  5. Select the appropriate payment method.
  6. In the detail area, enter the item that has been sold.
  7. On the next line, enter the item you've created for the fees. Make sure that amount of the fee is negative so it will be deducted from the total sales amount.
  8. Click Save & Close.

I also encourage checking our Accounts Receivable Workflow Guide to learn the different ways in tracking customer transactions in QuickBooks Desktop.

 

Fill me in if you need more help in entering your other business transactions. I'm always here to back you up.

View solution in original post

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