Deduction by Intuit when depositing a sum to my account

Credit memos to customers are a reduction of what they owe and yes, your books would show money owed back to the customers. 

Lets start with some basics. Your customers are submitting payment in full for the invoices you issue and if you manually enter payments you would record it as payment in full, then add that full payment to a deposit, deducting the processing fees on that deposit. 

Example, you issue an invoice for $100 and customer pays $100. INtuit deposits $96 (+/-).

1. record payment received of $100 posted to Undeposited Funds

2. create deposit with $100 payment, on next line DEDUCT (negative entry) yoru expense account for processing fees in the amount of -$4) thus net deposit of $96 reflects $100 paid in full and $4 expense in collecting that $100

Greetings,@david224.

I'm glad to know you had a very good experience here in the Community. I'd like to share my insights about adding the Intuit fee to your records. 

To reflect the deduction (finance expense) on your records, but not send to your customers, I suggest adding it to the deposit. Here’s what we need to do first:

1. On the left pane, select Sales and then Customers.
2. Select the name of the customer. 
3. On the Transaction List, select the invoice payment in your screenshot.
4. In the Deposit to field, choose Undeposited Funds.

After that, let's enter the deduction in the Bank Deposit window. Here's how:

1. Click + New button then select Bank Deposits.
2. In the Select Existing Payments section at the top, place a checkmark to select the payment you want to deposit.
3. From the Add other funds to this deposit section, enter the amount of the Intuit service fee as a negative amount.
4. From the Account section, select the Expense account you use in tracking the fees.
5. Verify that the deposit amount is correct.
6. Choose Save to record the transaction.

Then, you can delete the Credit Memo to avoid duplicates.

 Please let me know if you have any additional concerns. Enjoy the rest of the week and stay safe!

Sorry for not getting back to you earlier.

I'm still checking this matter.

Thanks for your help.