System-recorded fee for QuickBooks Payments

Thank you for the detailed information, Carol. It's my pleasure to share some steps to stop the auto-created expense from matching in QuickBooks Online (QBO).

QBO automatically records deposits and fees deducted from your QuickBooks Payments transactions. If you want to stop the expense from auto-matching, you can turn off this feature from 

the Categorized or Reviewed tab.

Here's how:

1. Go to the Transactions menu and select Bank Transactions.
2. From the Categorized or Reviewed tab.
3. Select the Gear icon at the top of the transaction list.
4. Then, turn the Automatic matching switch Off.

To learn more about this feature, check this article: Automatically match QuickBooks Online product transactions. 

I'm attaching these articles for future reference in categorizing transactions and reconciling accounts in QBO:

• Categorize online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

I've got your back if you have more questions about managing your payments in QBO. Just add your reply in the comment section. Take care.

but that will turn off all my matching for my customer invoices and everything...

Hello Carol,

I appreciate your quick response. Yes, turning off the Automatic Matching will also do the same with your customer invoices and others. In that way, the bank rules you created will take effect after turning it off. Then, you can create other bank rules for your customer invoices and other transactions to automatically categorize in QuickBooks Online.

You can only choose either to turn off the Automatic Matching or use QBO bank rules to categorize your bank feeds transactions.

After that, you can consider reconciling an account in QuickBooks Online to match your records between your bank and QBO.

Let me know if you have any other concerns that need to be addressed. I'm here to ensure your business needs are met. 

How do you turn off automatic expenses being generated?

Is there a way to define how a system generated fee gets assigned by class? Right now I have fees that I'm fine being auto-matched, but I'd like them to auto-match with a specific class I've set up.

Yes, Andrew. There is a way to achieve this in QuickBooks Online (QBO). 

QBO allows you to set up a class and auto-match them to your bank transactions. To do so, let's create a bank rule and assign a condition that matches your system-generated fees.

First, make sure to turn on the Class tracking feature. Please note that this is only available in QBO Plus and Advanced subscriptions. (If you already set up classes, skip these steps and follow  the instructions below.) 

Here's how to turn on the feature:

1. Go to Settings and select Account and Settings.
2. Click Advanced, then select the Categories section to edit.
3. Check Track classes.
4. Select Save, then Done.
   
   

After that, you can set up your class list.

Once done, you can perform the steps below to add class to your rules:

1. Go to the Transactions and then select Rules.
2. Click New rule.
3. Enter the name of the rule.
4. Under the Apply this to transactions that are section, enter the necessary details of the rule.
5. Under Assign, add the other info.
6. After that, click Assign more and add the class you created.
7. Once done, hit Save.
   
   

For more details about the process, please see this article: Create bank rules to auto-categorize transactions.

Finally, I've added these resources to help you review your transactions to ensure they're added to the correct accounts and make sure your QuickBooks records match with your bank statement:

• Categorize online bank transactions
• Reconcile an account in QuickBooks Online

Please don't hesitate to click the Reply button if you need assistance categorizing bank transactions and managing your classes. I've always got your back!

the solution given above does not answer the original poster's question.  I also have this issue.  QBO is automatically  entering System-recorded fees.  But it is not assigning a class to these entries.  How do I set up preferences or rules for System recorded fees, so I don't have to manually touch each transaction to enter a class?  

Let me share details regarding assigning classes to your recorded fees in QuickBooks Online (QBO), Ks_3.

In QBO, automatically assigning classes on your transactions is not available. With that, fees entered in your account show under unspecified classes. Therefore, I recommend integrating a third-party app to QBO that has the feature to automatically assign classes to your fees.

Here’s how you can visit the App page:

1. Log in to your QuickBooks Online account.
2. At the right panel, select Apps.
3. Look for the app you wish to connect using in the magnifying glass bar or choose the Browse category ▼ to search for an app by category.

Once you have found the right app, you can learn how to download and manage it by referring to this article: Integrate app in QuickBooks Online.

In addition, if you’re planning to transfer app ownership or disconnect apps in your QBO, you can refer to this article: Transfer app ownership or disconnect apps in QuickBooks Online and Accountant.

I’m here to help you with any other questions you may have about tracking your classes in QBO, Ks_3. I'm just a post away. Keep safe!

Hi Irene, thank you for your reply, however it doesn't address the issue.  I am familiar with how to set up classes.  The company file that I am having issues with was set up from the beginning with several classes.  I also specified for a warning to be issued if a class is not specified., however it appears those warnings are not heeded by System Administration.  This particular company receives payments thru QBO payments, and each time this happens, a fee is charged, and posted automatically by System Administration.  The company settings allow you to specify which account to post the fee to, but I did not see a way to specify a class for these fees, so they are being posted without an assigned class.  Please advise if there is a way to have classes assigned when these system-recorded entries are posted.

thank you!

Thank you for your prompt response and for clarifying your concern, ks_3. I can see the importance of being able to set up and automatically assign a class for QuickBooks Payments processing fee transactions.

While QuickBooks Payments allows you to choose where processing fees are recorded and automatically records them, it currently doesn't support automatically assigning a class to these transactions, and we recognize the significance of this functionality for our users.

We value your feedback and encourage you to share your insights and suggestions with our product engineers by following these steps:

1. Click the Gear Icon.
2. Under Profile, click on Feedback.
3. Enter your Suggestions.
4. Then click Submit.

Alternatively, you can manually edit these transactions in your register. Here's how:

1. Go to the Settings menu.
2. Choose Chart of Account.
3. Select the account where the processing fees are posted, and click View Register.
4. Click the Transaction and manually assign a Class, then Save. 
    
   

    

For more detailed information, you can reference this article: Find, review, and edit transactions in account registers in QuickBooks Online.

Furthermore, regularly reviewing and reconciling your account is essential for maintaining financial accuracy, supporting efficient tax reporting, and ensuring comprehensive financial management.

Lastly, you can access and manage your QuickBooks Payments to track your transactions and update your information.

Let me know if you need more guidance managing your class or any other concerns in QuickBooks. Just reply to this thread, and you can always count on me for assistance.