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Level 2

How should I apply a payment to an invoice when the fees are deducted prior to the bank deposit (Braintree deposits are less than the invoice because the 2.9% fee)

When receiving Braintree deposits, the fees are already removed from my customer payments. So when applying the payment the amount is less than the invoice. What is the best way to apply these Braintree payments to my invoices?

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Best answer 10-19-2018

Best Answers
ProAdvisor

On the receive payment screen, enter the full amount of t...

On the receive payment screen, enter the full amount of the invoice so the invoice can be paid. On the make a deposit screen, check off the customer payment being deposited, then on the next line enter the credit card discount as a negative number. This will match what Braintree is depositing.

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14 Comments
ProAdvisor

On the receive payment screen, enter the full amount of t...

On the receive payment screen, enter the full amount of the invoice so the invoice can be paid. On the make a deposit screen, check off the customer payment being deposited, then on the next line enter the credit card discount as a negative number. This will match what Braintree is depositing.

View solution in original post

Level 1

The only downside I see to this is that you can't run an...

The only downside I see to this is that you can't run an expense report for the vendor to see how much you paid in credit card fees for some reason.  I guess if I go into my P&L report I can click on the sub ledger and get a detail there, but it seems like a workaround for a basic thing that lots of people struggle with.
Level 1

Re: On the receive payment screen, enter the full amount of t...

This is not a credit card discount though so it'll through off the p&l come tax time.  When applying the payment you will see a button that says discounts and credits.  That's where you need to deduct the fees.  

mmp
Level 1

Re: On the receive payment screen, enter the full amount of t...

In doing this- will it affect the P&L- I don'w want it to show the full amount if I actually received less, it seems that this should be a merchant fee- but now sure how to apply it.

 

mmp
Level 1

Re: On the receive payment screen, enter the full amount of t...

In doing this- will the P&L be affected- it seems that it should be a merchant fee and deducted... not sure what the best is for this?

 

QuickBooks Team

Re: On the receive payment screen, enter the full amount of t...

Allow me to jump right in and help with your question, mmp

 

Yes, it will affect your P&L. The best way of doing this is to use Undeposited Funds when receiving the payment. Then, add a line for the merchant fee when making a deposit to your bank. Make sure to add the merchant fee as a negative amount so it will deduct from the total amount that you received.

 

You can always reply to this thread if you have follow-up questions. 

Level 1

Re: On the receive payment screen, enter the full amount of t...

@JenoP I have a similar situation with fees taken out by Shopify.

 

I have a Sales Receipt created by Cloud Cart Connector (Imports Shopify sales to Quickbooks) and I have a transaction imported from my bank in the "for review" state.

 

I want to match the Sales Receipt to the imported bank record, however the Sales Receipt is for an amount ($15.41) higher than the bank transaction  ($14.66 (Sales Receipt - Shopify fee)).  The Quickbooks Online match interface for the bank transaction will not show any Sales Receipts for amounts greater than the bank transaction amount. I'm at a loss as to how to properly match the Sales Receipt and associated bank transaction while appropriately accruing the fees.

 

FWIW... I've contacted Quickbooks customer support and they told me they don't have a solution for me and just told me to submit feedback in hopes of future enhancements. 😕

 

This doesn't exactly help me get my books in order for tax time.  Any suggestions?

QuickBooks Team

Re: On the receive payment screen, enter the full amount of t...

Hi there, kbolton.

 

QuickBooks will match the transactions if they have the same amount. It's also considered a Match if the transaction date is within 90 days. Since the imported imported transaction is different from the what's recorded in QuickBooks, it will be not considered it as a match.

 

You might want to post the Sales Receipt in the Undeposited Funds first. Then, follow the same steps I've shared above to record the merchant or Shopify fee in making a deposit to the bank. Once done, use the deposit in looking for a match. 

 

I will also forward your feedback and feature request to our product engineers. They will review this future updates. 

 

Visit us again in the Community if you have other questions.

Level 1

Re: On the receive payment screen, enter the full amount of t...

@JenoP In the short term, how would you propose handling this situation? Manually adjusting the Sales Receipt to match the bank transaction and then a separate journal entry to account for the fees assessed on the Shopify side?

QuickBooks Team

Re: On the receive payment screen, enter the full amount of t...

Thanks for getting back to us, @kbolton.

 

You can definitely consider that option. However, I still encourage seeking help from your accountant for more guidance. He/She could check if recording your fees this way won't affect your accounting books.

 

Please let us know if you have any other concerns. Have a good day!

Level 2

Re: On the receive payment screen, enter the full amount of t...

wow. thank you! 

Level 2

Re: On the receive payment screen, enter the full amount of t...

I am working with a client who has a very small business and limited bookkeeping knowledge.  They are using Square to process payments on site as services are provided.  The process described is way beyond their capability.  I have not been able to find a way that will work for them.  And their business is all by credit card.  Definitely need an enhancement for this.

Level 1

Re: On the receive payment screen, enter the full amount of t...

There needs to be an update to accommodate this way of working.  I would say the majority of e-commerce shops work in this way.  You have a sale with "$X" which can sync to QBO as a Sales Receipt or Invoice and then you have a bank deposit with "$X minus fee" which can sync to QBO but they cannot be matched.  I should just be able to balance the difference to my Bank Fees category.  Come on.

QuickBooks Team

Re: On the receive payment screen, enter the full amount of t...

Hey there, @eddys_brand. 

 

Glad to have you here in the Community. 

 

I'm happy to submit feedback for you to our product developers to give them an insight into what our customers need in a future update. 

 

You can also follow The QuickBooks Blog to stay current on updates coming to the product. 

 

If you have any other questions, I'm only a reply away. Hope all goes well and you have a good rest of your week!

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