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ParagonLLC
Level 1

third party billing and payments

So I hope I'm explaining this correctly. So we have a third party software that we use for billing and accepting payments from customers that syncs with QuickBooks.  When the customer pays, it automatically shows the invoice in Quickbooks that it is paid.  Then the next day it comes though my bank transactions.  How do I record this?  The customer's invoice already shows paid, so I have nothing to link this payment in my bank transactions to.  I can't sent it to my Sales account because it then looks like I'm getting paid twice.  Also the third party takes out the processing fee before it is sent to my account, so it doesn't even match my customers invoice anyway as we charge the customer that processing fee.  Can anyone help with this?

1 Comment 1
Kevin_C
QuickBooks Team

third party billing and payments

Let's get this resolved, ParagonLLC. I'll go over the steps to do it seamlessly with your QuickBooks Online (QBO) account.

 

We can use the Resolve the difference option to categorize the processing fee accordingly and match it to the invoice payment.

 

If you don't already have one, you can start by creating an expense account for processing fees. I'll show you how:

 

  1. Go to Transactions and pick Chart of accounts. Then, click New.
  2. In the Account pop-up, choose Expenses from Account Type dropdown.
  3. You can select Bank charges from the Detail Type dropdown.
  4. Enter a Name and hit Save and Close.

 

After that, you can resolve the difference between the payment transaction and the invoice. Follow these steps to proceed:

 

  1. Go to the Transactions menu, then pick Bank transactions.
  2. Choose the bank account with the transaction.
  3. Select the relevant transaction on the For review tab. Click the Match radio button.
    image.png
  4. In the Find other matches window, pick the correct dates and filters and tick the box for the appropriate Invoice or Payment.
  5. Tap Resolve at the lower-right corner to open Add resolving transactions.
  6. From the Category dropdown, choose the Processing fees expense account you created.
  7. Enter the Amount fee as negative. Then, tap Save.
    image.png

 

Additionally, you can check out these resources as your guide to view various procedures that will help you reconcile your online transactions:

 

 

You can count on me to provide further related resources and details regarding your bank transactions. Kindly comment with any questions you have, and we'll ensure a prompt response.

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