Invoice was for 356.85, payment thru bank acct for 347.47, fees deducted for square paymenbt. I matched it thru facebook for 347.47 but 9.08 still showing due. ?

I'll guide you to record a bank fee, @Corwin676.

Let's enter the bank service fee amount directly to the bank register so it matches the bank statement balance. Once done, enter the fee as a negative amount on the Bank Deposit page when you deposit the payment.

Here's how:

1. Click on +New.
2. Choose Receive Payments and enter all needed information.
3. Hit the checkbox next to the invoice you would like the payment to be applied to.
4. On the deposit to account, choose Undeposited funds.
5. Click on Save.
6. Click on +New.
7. Choose Bank Deposits. Locate the payment you entered in the Select Existing Payments section at the top.
8. Check to select the payment you want to deposit.
9. Enter the amount of the bank service fee as a negative amount from the Add other funds to this deposit section.
10. From the Account section, choose the Expense account you usually use in tracking bank fees.
11. Verify the deposit amount to make sure it's correct.
12. Click on Save.

Please feel free to review these handy articles:

• Reconcile an account in QuickBooks Online
• Categorize and match online bank transactions in QuickBooks Online

These will guide you on how to always match your bank and credit card statements and manage bank transactions in QBO.

We always got your back. Let us know if you have further questions about QuickBooks and managing invoices. Enjoy your weekend!

Answer was exactly what I needed. Thank you very much

Thanks for becoming part of the Community, Corwin676.

I'm happy to hear Mich_S was able to help record a bank service fee and go over how to enter it as a negative amount on your Bank Deposit screen.

You'll additionally be able to find many detailed resources about using QuickBooks in our help article archives.

Please feel welcome to send a reply here or create a new thread if there's ever any questions. The Community's always here to help. Have a wonderful day!

I have followed your guideline and it helped to apply the charged fee to the payment, thank you.

But now, in the review of bank transactions, the bank feed now shows this as a payment that needs to be matched or categorised. Should I now exclude this payment from the bank feed because it is already dealt with in the procedure you just described?

Thank you.

Hello @HvdK,

I'm glad to know that the steps provided by my colleague helped you handle the payment and fees. Allow me to chime in and share more information about your banking concern in QuickBooks Online.

I recommend matching the payment in bank feeds with the bank deposit in QuickBooks. This process will prevent duplicates and will link both transactions.

In case you need the steps, here's how:

1. On the left navigation bar, click Banking.
2. Select the bank account.
3. Go to the For Review tab.
4. Select the payment.
5. Choose Find match.
6. Match with the bank deposit.

Also, there's a feature that can speed up the categorization of downloaded bank transactions. I've attached an article you can use to learn about the setup process, as well as how to review recognized transactions in QuickBooks: Set up bank rules to categorize online banking transactions in QuickBooks Online.

Reach out to me anytime you need further assistance handling payments and fees in QuickBooks. I'm always available to provide a helping hand.

Thank you AlcaeusF.

This is indeed the procedure that i follow with my checking accounts and that works perfectly.

But for Paypal it is an other story because the automatic bank fees only give the gross amount and no information about the applied fee or the net amount.

For instance, when we receive a donation by Paypal of € 20 net, the real transaction is € 21,07 minus a fee of € 1,07 this leaves a net donation of € 20. I have to look on my Paypal account exactly what the real numbers are.

When I book this as € 20 donation and € € 1,07 Paypal fee, I see on my QBO balance for Paypal and in the bank register + € 21,07, but Paypal sees this as a +€ 20, so my balances in QBO and Paypal do not match.

It is actually worse, because the € 1,07 Paypal fee is now income (or negative expense) instead of an expense.

Sorry if this sounds a bit confusing, but i find is sometimes hard to explain this in English, not my native language.

Harry

Hello @HvdK,

I appreciate you for getting back to me with much more details about your banking concern. Allow me to provide additional information about managing bank transactions in QuickBooks Online.

Yes, I agree with you about how Paypal works. Don't worry, your response is very detailed and I was able to understand your point about matching the transactions.
 

Since automatic bank fees only provide the gross amount, you can go with excluding the transaction in banking. This way, we can ensure your books are accurate and correct by only following the suggestion of my colleague.

It's not necessary to use the Match feature in your case. As long as, the payment post correctly in the bank register, you'll be fine.

Additionally, I've attached a link you can visit to know more about how you can undo previously matched bank transactions in QuickBooks: Unmatch downloaded bank transactions or move them to another account.

Reach out to me anytime you need more clarifications about QuickBooks banking or categorizing payments. I'm always here to help. Take care!