Credit Card payments from 3rd party(Square)

I'd love to know too. I use Square as my point of Sale for CC but would like to invoice etc. through Quickbooks. I set up the Square/Quickbooks Sync App and received my first payment last night. In Quickbooks, the payment shows up as a separate paid invoice and if I were to mark the Quickbooks invoice as paid, my account would register as if I had been paid twice for the same invoice. I would like to know how to take that payment in Square and apply it against an invoice in Quickbooks so that they are reconciled and the payment matched with the correct invoice. 

Hi Kallison and NorFrame,

The QuickBooks Online Square app only gives you the option to have those sales come over as a new transaction, so you're not able to match it to an existing invoice. That app also does bring over refunds, taxes, tips, and discounts. You could manually export a CSV from Square and manually import it into QBO, or you could link the bank account that those deposits are sent to. I hope that gives you the info that you're looking for. Let me know if you have more questions. 

Thanks Dwayne, I only use Square for credit card processing. If I am invoicing through Quickbooks and managing the rest of our finances through there, is the only way to reconcile without having to manually monitor transactions to use Quickbooks for credit card processing. We have just invested in a number of pieces of Square hardware and am hoping not to have to switch CC processing. Thanks

Hey NorFrame, there isn't an uncomplicated solution to using QuickBooks for invoicing and Square to take the payments. Does the invoice that's generated by the Square app look like it could work for you? That looks to be the way the app was designed to be used. Let me know what you decide to do. 

Thank you for your reply. But I wasn’t looking how to import I was looking to actually record the transaction. If we go this route And i do import and I show this new transaction with payment that would be fine but it would be short the difference of what the client was actually billed to them (they paid the bill but I only am able to collect minus the transaction fee) How would I show this difference to credit them so **bleep** appears that the invoice is paid in full? Where does the expense of fee get recorded? Do u create another record for that if I import?

Hey Kallison, the deposits that hit your bank account are going to be minus fees (for Square), so your best bet would be to import the sales data from Square. That will give you a full sale amounts and fee amounts. Some processors deposit the full amount and deduct the fees from your bank account, but Square just deposits the net amount. The Square app can help bring over the fees, but you still wouldn't be able to apply that to an invoice created in QuickBooks. I hope that gives you some more insight into what's going on. 

 Thank you for your response. Yes I understand that. That is why I don’t know what to do with the difference of what I originally invoice the customer versus what I actually collect on the invoice because this will be 3% or so less because of the Square fee. How do I in QuickBooks reflect that the invoice is paid in full even though it’s 3% short? I have to write this difference off somewhere  I assume. I just didn’t know how to do it it’s a quickbook/accounting question.

I'm having a problem with Square creating an invoice and showing it "paid" by the deposit.  When I try to apply the payment to my customer's invoice, I get a message that says, "this has already been deposited, the deposit must be edited before...", or something like that.  I can't apply this payment to my customer's invoice.  I have tried to edit the automatic invoice, but due to the payment "already being deposited", I can't edit it.  I'm so frustrated!  I'm new to QB, but I'm almost certain that when I first started I was able to make these edits.  How do I remedy this or what am I doing wrong?

Hello and welcome to the Community, @novaember.

I'm here to help you find the remedy you're looking for. To make sure I understand you correctly, is the Square App importing a duplicate invoice in addition to the one that you create and send directly from QuickBooks? If that's the case, these duplicates will overstate your income. This seems to be in line with the rest of the discussion here, as the option for invoicing with QuickBooks but processing the payment with Square is unavailable at this time.

The suggested method is to invoice and process the payments in Square and then import the sales data, or use QuickBooks for the entire process instead. Everything you could ever need to know about Syncing with Square can be found in our guide at the included link.

While you decide which system works best for you, the instructions below will help you re-assign the payments in the meantime:

1. From QuickBooks Online, navigate to the Sales tab. Select Customers.
2. Click the name of the customer whose invoice you're paying.
3. Click on the Payment to open the transaction.
4. Un-check the invoice that is currently applied to the payment and check the correct one.
5. Click Save and Close.

I'm including a video that displays the process below:

I made certain to reassign a deposited payment to ensure the process works the same way. This will apply the payment to the invoice you created manually in QuickBooks and sent to your customer. Please feel free to get in touch with me here if there's anything else you need. Thanks for reaching out, take care.

Thanks Dsimm54057.  Like many others, I have the same issue.  The simple solution would be for Square, through its integration to gain access to your Quickbook invoices and for Quickbooks to generate the appropriate transactions, or for you to be able to link a Square transaction to a Quickbooks client after the fact.  I tried both and could not get it to work.  I thought Square-Quickbooks was going to work better, but it looks like it is a broken process.  I am going to try to go back and fix the mess I have using your methodology.  Tx for the help.

a thousand thanks @Dsimm54057 ! this process should work perfectly for our small mobile business where we accept an occasional credit card.  my headache is gone.

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@Dsimm54057 wrote:

I solved this by  not having Square do the automatic bank deposit. I turned this feature off. The money is then in my 'undeposited funds' account.  At the time of the credit card deposit to the bank, I simply choose the deposit(s )that are reflected in the deposit, then add another line to the deposit using 'square service charge ' (expense account) and a negative amount equal to the actual deposit dollar amount sent to my bank. 

 

That way square will show the invoice as paid (example $100 charge and $100 square payment) and the bank deposit will also match (example $100 charge, $100 less $2.00 fee recorded on bank deposit  = $98.00 deposit which matches the bank deposit)

 

There is no way to have this automatically happen. Either the invoice will show the fee as unpaid (in which case you can record an additional payment in the aomount of the fee for the invoice as  a 'square service charge expense 'account to clear it).  I tried this and it works and tracks but takes more time than just doing a manual deposit.  You would need to manually apply an additional payment for the fee to each invoice.  Every time. 

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On our Square app, it has to go into some bank account, it doesn't show us a place that it doesn't go into some account. So where do I need to have that payment go? Seems like it has to go somewhere. 

After you split it how do you apply it to an invoice?

i.e. if the invoice is for $900.  They pay $550 on square $16.25 in fees they still owe $350??

Welcome to the QuickBooks Community, Aimless-7454.

I’m here to help figure things out and make sure your square transactions will come over into QuickBooks Online.

First off, I want to make sure we’re on the same page. When you say, it doesn't show us a place that it doesn't go into some account; are you referring to those transactions which didn’t sync into the program?

    
Once you activate the connection between your Square account and QuickBooks Online, your transactions should sync automatically. However, if some are beyond 18 months, you need to do a Manual import.  

This can be the reason why some of your transaction doesn’t go to any accounts. To import prior transactions:

1. Sign in to your QuickBooks online company, then go to My Apps.
2. Choose Settings under Sync with Square.
3. Select Run next to Manual Import.
4. Pick a date range for the transactions you want to manually import.
5. Click Run.

I’ve added an article below you can refer to if you have other questions with the Sync with Square process:

Sync with Square Hub

These steps should help you with bringing your Square transactions into QuickBooks Online.

If this isn’t the scenario you’re looking for, feel free to let me know. I’ll be around!

Hello there, Daveyboysam52.

Let’s get your square payment transactions sorted so they’ll show correctly in QuickBooks Online.

When you activate the square connection into the program, your transactions should sync automatically. Once they move over, all payments will be posted to your Undeposited Funds account.

You can review them by going to the Chart of Accounts and double-clicking the Undeposited Funds account. From there, you can edit them and match to the invoices created in QuickBooks Online.

Here’s how:

1. Go to the Gear icon, then Chart of Accounts.
2. Scroll down and click View Register in the Undeposited Funds account.
3. Locate the Square payment you’re referring to, and select Edit.
4. In the Receive Payment screen, put a check mark before the invoice you want to apply.
5. Enter $550.00 in the Payment and Amount received fields.
6. Click Save and Close.

Please note that the credit card fees/charges will be imported as individual merchant expenses to the appropriate Expense account in the program. You can check out these articles for more information about the Sync with Square feature:

• Sync with Square - Default Accounts and Names
• Sync with Square Hub

That should do it! You should now be able to apply the partial payment to the invoice. Just follow the same steps to record the remaining balance.

Don’t hesitate to let me know if you have other questions. I’m here to help anytime.

Hi there,

Could you explain how you accomplish this detail? 

"I solved this by  not having Square do the automatic bank deposit. I turned this feature off. The money is then in my 'undeposited funds' account. "

This seems a great solutions, but I've checked my Square account settings and don't understand how to accomplish this.   I saw that someone else (aimless) asked the same question.  

Thank you in advance,

~ck

Hello there, cklBM.

I'm here to help provide additional clarification about recording credit card payments from Square.

The user is still using the Sync with Square app, and only ends the process with depositing sales to the Undeposited Funds account. Since the feature is disabled, they manually create bank deposits from Undeposited Funds into the business bank.

To configure the settings from the Square app, I recommend giving us a call. Our Phone Support Specialists will be able to show you the step by step process.

You can reach one of them through these steps:

1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
2. Select QuickBooks Online.
3. Select a topic.
4. Scroll down to Get Phone Number.

Please don't hesitate to visit us here if you need any assistance from me. The Community is always available to help.

that is a terrible, inelegant 'workaround.'

I suppose the Quickbooks answer is to use their credit/debit processing service. not interested in having that forced on me.

How about doing it right?

1) choose transaction. 2) select "square" from a (proposed) drop down menu. 3) box appears asking square fee (which should be noted in the text that goes to bank) 4) choose "find match." Quickbooks figures it out, assigns fee to appropriate account.

Done.

We import invoices and payments from our database into Quickbooks online.  So the payments are documented the day they happen.  However, then our third party credit card processing, deposits the funds into our account once a month.  How do I make this all match up so we aren't entering payments / deposits twice and messing up the bank balance

Hi there, @DebGer.

I'd be glad to help you avoid getting duplicate transactions in QuickBooks Online (QBO). 

You can wait for the bank transactions to be downloaded to QBO. Or you can also contact the third-party program to know  the ACH deposit schedule. No worries, you can still exclude those duplicate transactions, here's how:

1. Navigate to the Transactions menu and select Banking.
2. Click the For Review tab.
3. Check the boxes of the duplicate transactions and select the Exclude button. Please see the screenshot below for additional reference:

Once done, these transactions will be transferred to the Excluded tab. You can also wish to delete them, go to that tab and check the boxes of the transactions. Then, select the Delete button. Here's how it looks like:

I've also added this article you can review for your future task about assessing your accounts in QuickBooks Online: Reconcile an account in QuickBooks Online.

You can always tag my name in the comment section below if you have other concerns or questions. I'd be happy to help you through it. Take care.