How to match a deposit to an invoice when the transaction fee has changed the amount received?

You have it exactly right. I'm using QuickBooks Online. Thank you so much for your time.

It's my pleasure. 

First, I'd like to ensure the attached payment is shown as deposited. You can do this by going to the + icon and selecting Bank Deposit. This is where you'll be able to locate the existing payment, select it using the box to its left, and then Save. 

Now that it's deposited, please go back to the Banking screen and see if you're able to match the payments. It's likely that QuickBooks will not find it for your because the amounts are different. If this is still the case, you have the ability to exclude the imported transaction. This can be done on the banking page by checking the box to the left of the transaction, clicking Batch Actions, and then choose Exclude Selected. 

I look forward to hearing how this goes for you. 

So, I can see how that marks my invoice as Paid, but there is no way to associate a deposit with an invoice? How is the transaction fee being accounted for?

I am having this problem, but this solution is not working for me.   When I go to add a new bank deposit as you instructed, the deposit is not showing up there for me to select.  Please help, I would have thought getting paid through quickbooks the system would be smart enough to recognize and catagorize these transactions itself...

I am having this problem.

Additionally, it would be a waste of time to have to manually create the bank deposit when the transaction itself represents the bank deposit.

Why not just show the invoice or payment received in the matching list and then we can use the resolve difference tool to add the bank fee expense as a negative amount?

This is so frustrating!

Hi there, @Kerley425,

I'm here to help match the deposits coming from QuickBooks Payments.

There aren't any issues  with the automatic matching features in QuickBooks Online. If the transactions are still not automatically matching and deducting the fees up until now, you can try manually doing it.

Here's how:

1.    Click Banking on the left panel.
2.    Make sure to select the correct bank from the Bank and Credit Cards drop-down menu.
3.    Locate the bank transaction, then click it to expand.
4.    Click Find match.
5.    Select All from the Show drop-down menu.
6.    Set the From and To dates.
7.    Select the invoices/payments to match.
8.    Click Save.

Here's an article in case you need a reference: https://community.intuit.com/articles/1164872

Please let me know how this goes. I'll be here to help however I can.

Hi there, @seanmasonmusic,

Let's check why you're not seeing the deposits.

If you're not seeing the payments in the Select Existing Payments section, the payments may been deposited directly to the bank instead of going to the Undeposited Funds account. Here's what you'll need to do so you can add the fees to the deposits:

1. Click Accounting on the left panel.
2. Locate the bank account and click View register.
3. Locate the payments and click them, one at a time.
4. Click Edit.
5. Select Undeposited Funds in the Deposit to drop-down menu.
6. Click Save and Close.

After that, you can follow the same steps provided by @AliciaRoy on how to deposit the payment from the Intuit Payments Services.

If you need further assistance, don't hesitate to let me know and I'll be glad to help.

Hi there, @cordoor,

The Resolve the difference option when matching transactions in the Banking page is also another way to add the processing fees. If you choose to go through to this process, you can do and I've added this article to guide you through the complete steps:

Resolve the difference in a matched transaction

If you have additional questions about matching transactions, let me know and I'll help however I can.

We have multiple invoices which all contain the same ammount. I am worried that finding match is incorrect as it only matches the latest transaction to the name.  Can anyone confirm that when it finds a match there is a deeper algorithym that matches the correct payment to the correct customer?

Thank you all for your time.

Warmly,
Kai

1. Receive payment for customer invoice to "undeposited funds"

2. Go to "Bank Deposit" and add to the deposit the merchant processing fee to the expense account you have setup for this expense as a credit amount to reduce the deposit total

3. Make the deposit on the date it went into the bank account

4. Match the deposit in your bank feed

THIS IS MY ANSWER I'VE BEEN LOOKING FOR ! ;) you ROCK!

Thank you.

I'm fixing old transactions and trying to match them up.... so is there a way to mark the difference of merchant fees at the bank reconciliation / transaction matching stage

Thanks for joining this thread, @DebGer. I'm here to help you fix and match your old transactions without any further delay!
 

You have two options on how to handle merchant fees. You can use the Resolve Difference option to fix your payment difference. This helps match your transaction through its difference until it will be equal to zero. 
 

1. On the left pane, click Banking.
2. Select the For Review tab.
3. Choose the transactions to open.
4. Select the Find other records or Find match button to open the Match transactions window.
5. By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
6. Use options on the Show drop-down menu to specify the type of transaction you're looking for.
7. If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates.
8. If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transaction fields to add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
   
9. If necessary, you can use the Add new transaction button to add multiple resolving transactions.
10. Click Save.
    
    

As another option, you can create a bank deposit for the merchant fee less than the amount of the invoice or sales receipt. This way, you can match this transaction to the downloaded bank transaction. You'll have to enter the merchant fee as a line item in the "Adds fund to this deposit" section. Then, select your new merchant fee expense account and enter a negative value that reflects the bank fee amount.  For more detailed instruction, go to the What about recording Bank Fees? section in this article: Bank Deposits.

 Once done, you can reconcile your account to make sure your books are accurate. Just go to the Accounting menu from the left pane and select Reconcile.

For more insights about this process, please refer to these articles:

• Add and Match Downloaded Banking Transactions
• Why Do I Occasionally Notice Penny Rounding Differences?
   

Drop me a comment below if you have any other questions.  I'll be happy to help you further. Have a great day.

Hi Alicia,

I was trying to follow your steps, but QB says that amount of the bank service fee could not be negative...

What I was doing wrong?

Thanks!

Irina

Hi Alicia,

I followed you instruction, but QB said that the bank service could not be negative

Please advise.

Thanks

Irina