Processing fees issue

Hello, MUMC Finance.

I'll lay down a process to help us correct the situation about the processing fees.

You’re in the right track in creating the sales receipts for the gross sales and bank deposits that include the processing fees.

First, we’ll have to undo the reconciliation of the affected period. We can do it one at a time or invite your accountant to do it at once.

You can use this link to undo the reconciliation manually: Undo or remove transactions from reconciliations in QuickBooks Online.

After that, we can undo the added bank transactions (with the net amounts) to get rid of the duplicates. You can do it under the Categorized tab on the Banking page. Here’s the link for the detailed steps: Unmatch downloaded bank transactions or move them to another account.

These bank transactions will go back to the For Review tab. Next, we are ready to match them to the bank deposits you’ve created manually. You can use the Find Match option if needed. Here’s the article that you can use as your guide: Categorize online bank transactions in QuickBooks Online.

Once we have settled the transactions, we are now ready to reconcile the account again. Your accountant can also help us to get this situation fixed faster.

If you need to run a report of your cash flows, I'll add this article if you need help: How to run a Statement of Cash Flows.

Feel free to get back to us if you have additional questions of the process so we can guide you further.

I followed the additional steps but various reports still reflect both the Undeposited Funds (gross amount, sales receipt) and the Checking Account funds (net amount). This is reflected in Revenue By Donor, Statement of Activity, and Statement of Cash Flow reports (I only checked these). I also had an issue where a "bulk" deposit came in that contained multiple donors that had varying processing fees. The sales receipt I created was for an individual (one individual included in the bulk deposit). When I created a bank deposit, a new entry was created in the bank register for the individual, so I deleted the new register entries and the bank deposit. When I go the bank deposit it shows it is linked to the "bulk" deposit and it lists all of the sales receipts for the individual under "Received From" and all of the individuals in the bulk deposit under "Add funds to this deposit". When I tried to make adjustments, it said the balance would be off.

I still need a report for donors with gross only and a report for the church that reflects only the net. Also, instructions were for reconciled transactions. What do I do for unreconciled/For Review? Should I always create a bank deposit, even in cases when bulk transactions come in?

Let help you resolve this, @MUMC. This financial report allows you to quickly see what grant funds have been received and how the funds were spent. If your nonprofit would like to start using the Statement of Activity by Donor report to track granted funds, these instructions will get you headed down the right path.

To resolve duplicate entries in QuickBooks Online (QBO), you can follow these steps:

1.  Review your donor list in QBO and identify any duplicate entries. Look for similar names, addresses, or contact information.
2. Merge duplicate donors: Once you've identified the duplicates, merge them into a single donor entry. To do this, go to the Donors section in QBO and select the duplicate entries. Then, choose the option to merge them into one.
3. After merging the duplicates, review and update the donor information as needed. Ensure that the merged entry contains accurate and up-to-date details.
4. Once you've merged the duplicates and updated the information, you can delete the duplicate entries that are no longer needed. Be cautious when deleting entries and double-check that you're removing the correct duplicates.
5. Going forward, it's important to maintain data integrity to prevent duplicate transactions. Regularly review and clean up your donor list, and encourage your team to enter new donors carefully to avoid creating duplicates.

Remember to back up your data before making any changes, and if you're unsure about any step, it's always a good idea to consult with an accounting professional or reach out to QuickBooks support for further assistance.

Furthermore, I'm adding this articles that can help you record your additional information: 

• Track funds you receive from donors in QuickBooks Online.
• Customer sales and member contributions report.
• Add an account to your chart of accounts in QuickBooks Online.

Let know if you have other concerns, I'll guide you more along through the process on recording donors.

ChristineJoieR,

Your post did answer my issue. I don't have a problem with duplicate donors.

Hi there, @MUMC Finance.

I'm glad to know that my colleague was able to address your issue. Rest assured, we're committed to delivering the best customer service to you.

If you have any other concerns about processing fees, please don't hesitate to reply to this post. I will always be around to assist you. Have a great day!

I'm sorry, I had a typo in my previous post. I do not have a duplicate donor issue. I am still having issues with duplicate entries!

Welcome back, @MUMC Finance.

I've read through your posts, and creating a bank deposit once bulk transactions come in isn't necessary. You have to add them from the Banking Feeds instead of entering a bank deposit. This will help you avoid duplicate transactions.

On the other hand, I'd love to help you with your concern about the duplicate entries. Can you please send a screenshot of how you record the deposit? When creating the deposit, did you check the sales receipt and at the same time add the bulk deposit from the Add funds to this deposit? Any additional information could help us provide the best resolution.

Please know that the Community forum is always open to help you if you have follow-up questions about this. Have a good one!

MarkR,

I have 4 cases to address:

CASE 1 For previously reconciled transactions of a single individual, I followed the instructions IreneR provided and this was the result. The receipt reflects the gross amount, the deposit reflects the net amount (minus processing fees). This reflects a doubling of income from the individual.

CASE 2 For previously reconciled transactions for a bulk deposit, I followed the same steps regarding sales receipt and bank deposit. When I did this a new unreconciled entry was created on the bank register for the individual. I’m guessing because there was no bank deposit that matched the individual because they were included in a bulk deposit. I deleted those new entries from the register.

Screenshot of Revenue by Donor report

Below is the bank deposit linked to the individual’s sales receipt. There were multiple selectable entries for all of the undeposited funds.

Screenshot of Select the payments in this deposit section.

Screenshot of Add Funds to the deposit section, which includes other individuals in the bulk deposit. I was unable to add processing fees because it produced an unbalanced result.

CASE 3 For unreconciled, pending transaction bank transactions:

Create a sales receipt for the individual

Add the transaction from the bank feed

CASE 4 For unreconciled, pending bank transactions:

Create a sales receipt for the individual in the bulk deposit

Add the transaction from the bank feed

Based on cases 1 and 2, I would still expect to see the duplicate entries (gross amount and net amount) which reflects an inflated income. What do I need to do for each case?

Thanks for getting back to the thread, MUMC. 

I'd be glad to help you properly track your fees in QuickBooks and match them with your downloaded transactions in QuickBooks. 

To fix the issue, I'd suggest deleting all the transactions you've made to record the fees. This way, we can start fresh and properly track your fees in the program.

After that, you can follow these steps to record your transactions. 

You’ll need to create a sales receipt to record the gross amount from your donor.

1. Sign in to your QuickBooks Online account.
2. Select + New, then select Sales receipt.
3. Select the payment processor from the Customer dropdown.
4. Enter the sales info.
5. Select the Deposit to dropdown and choose the account you use to record sales.
6. In the Product/Service column, enter the net amount.
7. Select Save and close.

Once done, create an expense to record the fees that were deducted from the gross amount.

1. Select + New, then select Expense.
2. Select the payment processor from the Payee dropdown.
   Note: If you haven't set them up in QuickBooks, select + Add new.
3. In the Category column, choose the expense account to record the fee and enter the amount.
4. Select Save and close.

Finally, you can now match the transaction to your downloaded transaction.

For additional resources, you can check out these articles:

• Record third-party sales and fees in QuickBooks Online
• Manually add service fees to invoices in QuickBooks Online

Know that you can always tap me on my shoulder if you ever need anything else with recording transactions in QuickBooks. I'll be around to help. Stay safe!

Hi, MUMC Finance.

I appreciate you sharing the steps you've done to resolved this concern. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Stay safe and have a great rest of the day.