Due to trust accounting rules, client payments are deposited to our trust account but the Quickbooks Payments fees are paid out of our operating account. The system-recorded QB Payments fees entries are automatically booked to the trust account, which throws off the account balance. Is there a way to correct the account for the system generated entries or prevent the entries from being generated?
Hi there, Bedran Law.
You can set up the correct bank account in the Payments settings to link the QuickBooks Payments.
For more details on where to record the payments and processing fees for QuickBooks Payments, you can check out this article: Choose where to record payments and processing fees for QuickBooks Payments.
Once done, you can delete the QuickBooks Payment fees recorded in the incorrect account. Then, manually record the fees in your Online account.
For the steps and details, you can check out this article: Record payments deposits and fees in QuickBooks Online.
Feel free to reply to this post if you have more questions with QuickBooks payments.
The fees are set to the correct "expense account" but the system-recorded entry automatically expenses the fee to the Trust bank account. Payments are deposited to the Trust bank account, however, the fees are expensed to the Operating bank account. From what we understand, the system-recorded entries are set by default to be expensed to the same bank account payments are deposited and there is no option to change the default.
The problem is the payments are deposited into one bank account (the Trust account) and the fees are charged to another bank account (the Operating account).
Thanks for getting back to us, @Bedran Law.
You’re right. QuickBooks Payments automatically records the processing fees to the same bank where the payments are deposited.
The article shared by my colleague talks about choosing the correct bank for deposits and expense account for fees. Setting a separate posting bank account for the two is currently unavailable.
To make sure that the entry matches with the actual transaction, I recommend creating a transfer in QuickBooks. Move the amount of the fee from the operating to trust account to balance it off.
Check out this article for more information: Transfer funds between accounts.
That should get you pointed in the right direction.
Let me know how this goes and if you need further assistance. I’m always here to help. Have a good one!