How to record a wire fee that has been deducted when receiving payment for an invoice?

It's nice to have you in the Community, keyestates.

QuickBooks Online aims to provide ways in recording transactions. And, I'd be glad to show how to track the wire fee amount deducted from your customer's payment. 

You can create a deposit to show the invoice payment and the wire fee deduction. Then, change the status of the invoice to paid by matching it to the deposit. 

To create a deposit:

1. Go to the Plus icon, then choose Bank Deposit. 
2. In the Receive From column, select the customer's name.
3. Pick Accounts Receivable in the Account column and enter the amount of the invoice. 
4. From the second line, choose the customer's name in the Received From column.
5. Enter Wire Fee expense in the Account column, then enter the amount in negative. 
6. Click Save and Close (see screenshot 1).

To match the deposit to the invoice:

1. From the Plus icon, choose Receive Payment.
2. In the Choose a customer field, pick the name of the customer. 
3. Put check marks in the Invoice and the Deposit.
4. Click Save and Close (see screenshot 2). 

Check out these articles for more details:

• How to record bank deposits
• How to record a customer payment

You're not set to record the transaction in QuickBooks Online. 

If you have additional questions, you can always reach back to me. I'll be around.

Happy Thanksgiving Day!

Do you have an answer for this question for QB Desktop?

It's the same process in QuickBooks Desktop as well, Tinat. I'm here to guide you with the steps.

We'll create a deposit and add the wire fee. Then, link the deposit to the invoice.

First, here's how to create a deposit:

1. Click Banking.
2. Go to Make Deposits.
3. Select the Deposit to account.
4. In the first line, add the customer, select Accounts Receivable, then enter the amount.
5. In the second line, add the customer, select the wire fee expense account, then enter the amount as negative.
6. Click Save & Close. 

Next, link it to the invoice. Here's how:

1. Open the invoice.
2. Click Receive Payments.
3. In the UNUSED CREDITS section, click Apply Credits.
4. Go to the Credits tab, then select the deposit.
5. Click Done.
6. Click Save & Close. 

Let me share the article about the Accounts Receivable workflows in QuickBooks Desktop. This will show you five usual recordings of A/R transactions, depending on what suits your business processes.

If there's something else that you need, please feel free to swing by. 

Kristine,

Thank you for your help! I was able to make that work.

Good to hear from you again, @tinat.
 
You're most welcome. I also appreciate your taking the time to post this and letting me know that the issue got resolved.
 
As always, Community is full of experts possessing knowledge in all facets of QuickBooks, so please reach out to us here if there's anything you need. We're always happy to help you along your road to victory. Wishing you and your business continued success!

Hi

I recorded the invoice payment in the same way but why does it show that payment received is zero? When checking the particular customer ledger in accounts receivables, the payment amount is shown as zero. Advice please

It's good to have you here in the Community, @Samy India.

Let me provide some insight with recording invoice payment for Wire Fee and help you from there.

When linking a deposit as a payment to the invoice, this will create a zero amount for the payment received. It's because we're associating the Accounts Receivable account to the deposit for the payment.

Also, you'll want to make sure that you follow the step by step instructions share by my colleagues above. This way, you can properly record invoice payment for Wire Fee.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day and keep safe.

Thanks, Mark. I understand the workflow now.

Keep safe.

Hi there, 

I do not have the option below my Outstanding Transaction where the credit portion is. 

Is this option a limited function based on the subscription i gotten ?

Hi there, Joel Shee.

I'm glad to have you here and be able to help you out with your query.

Are referring to the Credits section when linking the invoice and to the other transaction. If so, the plan has nothing to do about it. Normally, we will be able to see an option under Credits. It's all depends on how you record the transaction to link it to the invoice. Let's say, you've recorded deposited transactions, or created a credit memo to link it to the invoice.

When following the steps below, we'll see deposit (e.g) Credit  and invoice under the Outstanding Transactions section. Here's how:

1. Go to Sales on the left panel.
2. Select the Customers tab. Then, click the name of the customer.
3. Under the Action column, click Receive payment.
4. Within the Receive payment page, you'll see the Invoice and Deposit transaction.
5. Make sure they are ticked. Once done, hit the Save and Close button at the bottom part of the page. 

In your case, it could be that you go directly to the Receive payment page. It goes like we click the +New button then, select the Receive invoice payment under Money in or Customer. If that's the case, we only have the Outstanding Transaction section since there's no other transaction that should link to it. 

Also, you may want to explore this article: View sales transactions. We can get additional information on how to manage the sales transaction within QuickBooks Online.
 

Let me know if you have follow-up questions about it. I'm always right here to guide and assist you further. Otherwise, you can enjoy the rest of your day. Stay safe, and be well!

I have been using this method of recording the deposits however, it is recording the deposit twice in my check register, why is that?  It is showing it as a reconciled deposit in accounts receivable then it is reconciled under the customers name as a deposit as well.  Which deposits is twice, therefore increasing the balance twice.  Can someone help me with this please? What am I doing wrong?

Hi there, tinat. 

What I would suggest is to follow these steps to record a single invoice payment. Follow along below:

1. Select + New.
2. Select Receive Payment.
3. Select the name of the customer from the drop-down menu.
4. From the Outstanding Transactions section, select the transactions that you’d like for QuickBooks Online to calculate. As you select these items, the payment total will change.
5. Select the payment method.
6. Enter the Reference no. and Memo if applicable.
7. You can either deposit the money to your checking account or to the Undeposited funds account.
8. Select Save and close.

If you're still experiencing issues after following these steps, I'd suggest reaching out to our support team for assistance. You can find their phone number at the following link. 

If you have any other questions or concerns, feel free to reach out below. Thanks for your time and have a nice evening. 

Thank you for your help, but this post was originally about recording a deposit that also has a wire transfer fee.  So just following the steps for a simple "receive payment" does not work in this case. I need to follow the process that allows me to deduct the wire transfer fee as well, but something in those steps is causing it to be deposited twice. That's the part that I cannot figure out. If you have a suggestion to help with that as well I would be grateful. Thank you for taking the time to respond.

Hello there, tinat.

We can receive a payment of the invoice without the wire transfer yet. Then, create a Bank deposit to link the invoice payment and wire transfer fee. This is to also avoid duplicates. 

I'll show you how: 

1. Open the existing invoice and click Receive Payment at the upper-right. 
2. In the Receive Payment page, select Undeposited Funds under the Deposit to field. 
3. Select the correct invoice and review the amount. Then, click Save and close. 

Here's how to link the payment to the wire transfer fee:

1. Go to the +New button and select Bank deposit. 
2. Select the account where the funds will be deposited. 
3. From the Select payments to add to this deposit section, select the invoice payment.
4. Under the Add funds to this deposit section, select the customer's name, the expense account used to track fees, and a negative amount of the fee.
5. The original invoice amount is being deducted with the fee. Hit Save and close. 

You can also check out this article for more details in receiving customer payments.

Get back to me if you still have other questions. I'd be glad to help you. Take care always!

How would you do this in QB for Mac?

Thanks for joining this thread, hechoamano.

It's the same process in QuickBooks Desktop for Mac. Choose Banking, tap Make Deposits, and select the payment. Then, click the next blank row to add the wire fee. Make sure to enter it as a negative amount and don't forget to select the account you want to track the fee.

When you record the deposit, QuickBooks transfers the payment amount from Undeposited Funds to your QuickBooks bank account.

Here is an article you'll want to check for your reference: Record and make bank deposits in QuickBooks Desktop.

Keep on posting here if you need more help. Stay safe!

Hello,

I have followed the steps outlined above, and I have created a Bank Deposit, and then received the payment. Finally, I matched up the bank transaction via the bank feed to this activity. However, when I go to my Customers view, the Deposit I just created appears with a Status of Overdue vs. Closed. What are my next steps to take so the Status is Closed?

Thanks for joining this thread, Kelsey Harris.

The correct process would be to initially enter your payment and assign it to the Undeposited Funds account. From there, you can make your deposit using those funds, then match them with the bank transaction. Doing things in this order will ensure that your deposit doesn't show an Overdue status.

I've included a couple detailed resources about working with your Undeposited Funds account which may come in handy moving forward:

• Deposit payments into the Undeposited Funds account
• Using Undeposited Funds

Please feel welcome to send a reply if there's any additional questions. Have a great day!

THANKS!!

You're welcome, @LYou.

If you have any other concerns, please let us know. The Community is always here to help. Take good care, and enjoy the rest of your day!