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Level 1

How to track full donation amounts and processing fees on Quickbooks?

I'm using Quickbooks online for non-profits. When I receive a donation via Square Space/Stripe or Facebook, I create a Sales Receipt for the donor with the full amount donated. However, Stripe and Facebook charge a processing fee for each donation and this amount is subtracted from the donation. Because there is a discrepancy between the amount deposited and the amount on the Sales Receipt, often when I try to Find Match on the Transactions page the correct Sales Receipt will not appear (but will appear if I change the Sales Receipt to be closer to the actual deposited amount). I would like to be able to Match the Sales Receipt with the deposit and add a line to the transaction which incorporates the fee. This way I can track the fees charged as well as the actual donation someone has made. How do others go about tracking the fees and the donation amounts? 

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Best answer 10-15-2018

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Level 10

Same as IntuitGarlynGay, but using a sales receipt which...

Same as IntuitGarlynGay, but using a sales receipt which you say you do, not an invoice:

When you create the sales receipt, choose  "Undeposited Funds" in the "Deposit to" box, not the bank account

Then create a Bank Deposit to the bank account, and you will see the full amount in the "Select Existing Payments" section. Select it.

Then, In the "Add New Deposits" section of the same deposit, enter the fee as a negative, and in the Account column enter Processing Fees or similar expense.  Save.

The net amount of the deposit should now match what's in the Bank Feed.

View solution in original post

32 Comments
Highlighted
Level 10

Same as IntuitGarlynGay, but using a sales receipt which...

Same as IntuitGarlynGay, but using a sales receipt which you say you do, not an invoice:

When you create the sales receipt, choose  "Undeposited Funds" in the "Deposit to" box, not the bank account

Then create a Bank Deposit to the bank account, and you will see the full amount in the "Select Existing Payments" section. Select it.

Then, In the "Add New Deposits" section of the same deposit, enter the fee as a negative, and in the Account column enter Processing Fees or similar expense.  Save.

The net amount of the deposit should now match what's in the Bank Feed.

View solution in original post

Level 1

Thanks! Doing it this way fixed the error I was getting i...

Thanks! Doing it this way fixed the error I was getting in the donors section.
Level 1

I'm new in QBO and had the same situation about the fees,...

I'm new in QBO and had the same situation about the fees, I created the sales receipts, and Undeposited funds, but in Bank Deposits I don't have the option of Select Existing Payments. What can be hapenning? I am using online plus for a nonprofit. Thank you, Ana
Level 10

Did you select Undeposited Funds in the Deposit To box?

Did you select Undeposited Funds in the Deposit To box?
Level 1

Thank you for your response. Yes, I did.  While doing the...

Thank you for your response. Yes, I did.  While doing the Deposits I had to select the donor and enter manually the amount. There is not option of Selecting Existing Payments.
Level 10

If you enter the amount in the "Add New Deposits" section...

If you enter the amount in the "Add New Deposits" section and you enter an Income account, that is doubling the Income.
There must be something wrong with the Undeposited Funds account. If you go to Accounting/Chart of Accounts, look for the Undeposited Funds account and make sure the Detail Type is also Undeposited Funds.
Level 1

I've tried all of the above and am still not able to do t...

I've tried all of the above and am still not able to do this. (QB Nonprofit)  QB won't allow me to select Undeposited Funds as a Deposit To option. It also will not allow it to be changed to Undeposited Funds in the Chart of Accounts. What am I missing?
Level 1

I've tried all of the above and am still not able to do t...

I've tried all of the above and am still not able to do this. (QB Nonprofit)  QB won't allow me to select Undeposited Funds as a Deposit To option. It also will not allow it to be changed to Undeposited Funds in the Chart of Accounts. What am I missing?
Level 10

It sounds like you are using QB Desktop. This question is...

It sounds like you are using QB Desktop. This question is for QBO. In desktop, you have to enable Undeposited Funds in Preferences
Level 1

This still doesn't work in QB Desktop Nonprofit edition.

This still doesn't work in QB Desktop Nonprofit edition.
Moderator

Hi user57879, Let me share an answer that I gave to a Com...

Hi user57879,

Let me share an answer that I gave to a Community user who asked a similar question.

https://community.intuit.com/replies/3165429

Let me know if you have any questions. Thank you! 

Level 1

Thank you! This is very helpful. Now that I've done this...

Thank you! This is very helpful. Now that I've done this the donor has a negative amount as an open balance showing next to their name in the donor tab. It states that it has a "unapplied" status. How do I fix this?
Moderator

Hi user57879, Thanks for getting back to me. I've attach...

Hi user57879,
Thanks for getting back to me.

I've attached screenshots from the answered post. Please check it out: <a rel="nofollow" target="_blank" href="https://community.intuit.com/questions/1477428">https://community.intuit.com/questions/1477428</a>.

Let me know how it goes.
Level 1

This was extremely helpful, but I want to enter the bank...

This was extremely helpful, but I want to enter the bank fee with the customer (donor) in the Received From column, so I can track the net for donors. However, when I do that, the next time I create a sales receipt (donation) for the donor, that bank fee pops up as a billable expense outstanding. I obviously don't want it to be treated as a billable expense. How can I change it to non-billable, or somehow initially enter it in a way that treats it as non-billable? Thanks. I would think it would be a routine thing (not just for non-profits) to enter an associated non-billable expense such as a bank processing fee in the Make Deposits window.

I could give up on associating these non-billable expenses with the donors, and just create some dummy customer and choose it in the Received From column, but then these billable expenses would pile up unendingly on that dummy account. Seems dangerous.

Thanks.
Level 1

Wow what a mess! What I did with the old QB system is jus...

Wow what a mess!
What I did with the old QB system is just the same except when you go to make the deposit, there was a box at the bottom that said cash back. I used that box and what account I wanted it to go into.
Such as (Processing fees) I'll have to check to see if they messed that up and removed that function because it was so easy!
It seems like they have changed a lot over the past several years and now it's difficult to do some of the same tasks that took 2 steps now take 6!
Level 1

Re: Same as IntuitGarlynGay, but using a sales receipt which...

The post which you reference doesn't seem to be available any longer, would you be so kind as to walk through the steps to account for the Transaction Fee?  Also, I have the bank account linked and would like to match that transaction, is that possible. 

 

Thx

QuickBooks Team

Re: Same as IntuitGarlynGay, but using a sales receipt which...

Thanks for joining this thread, @JAustin. 

Though the reference link is unavailable, I'll walk you through how to account the transaction fee and match that transaction. 

 

In QuickBooks Online (QBO), you can record a bank deposit on how your transactions were entered.  

 

If you deposit customer sales transactions to Undeposited funds, the Bank Deposit screen displays the Select the payments included in this deposit section. It contains a list of customer payments you can include in the deposit.

 

If you use QuickBooks Payments, the Bank Deposit screen displays the QuickBooks Payments section that contains a list of pending payments. For more information, see this article: Record Payments Deposits and Fees

 

Let's first create an expense account for all your your bank charges by going to the Chart of Accounts. When a customer pays you or donor paid a pledge, you can click the Receive Payment button. Then, deposit it to the Undeposited Funds account. 

 

When the funds hit to your bank account, you can follow the steps below: 

  1. Go to the Plus (+) icon at the upper right. 
  2. Under Other, select Bank Deposit.
  3. In the Choose an account field, select the bank account to which to deposit funds.
  4. If available, select the checkboxes of the transactions to deposit in the Select the payments included in this deposit or QuickBooks Payments sections.
  5. In the Add funds to this deposit table, enter information about any additional items to include in this deposit, including who the item was Received From, Bank Fee/Charge account, Payment Method, and Amount of the item.
  6. Choose the Bank Fee/Charge account, then enter a negative amount. 
  7. Click Save and new or Save and close

Please see the screenshot below to show you the last four steps. 

 

 

 

Since your bank account is linked, you can match them to the existing deposit entries in QBO. Here's how: 

  1. On the Banking page, select the For Review tab. 
  2. Click the transaction. 
  3. Select Find match
  4. In the Show box on the Match transactions page, select Deposit
  5. Change the date range. 
  6. Choose the deposit and click Save.

You can refer to the screenshot below to show you the fourth and fifth steps. 

 

 

 

Please know I'm always available here to help you with any of your QuickBooks needs. Just let me know by posting a response, @JAustin.

 

Level 1

Re: Same as IntuitGarlynGay, but using a sales receipt which...

Thank you very much, the steps and screen shots are very helpful. 

 

Is there a way then to indicate which Income Account that transaction should apply to for budgeting purposes?

QuickBooks Team

Re: Same as IntuitGarlynGay, but using a sales receipt which...

Thanks for getting back to us here in the Community, @JAustin. 

 

While I'm unable to confirm which income account to apply for that transaction, I'd suggest consulting your accountant. This way, he can help determine the transaction's correct income account and help ensure your financial reports are accurate. 

 

Budgets help you plan ahead so you can stay on top of your income and expense. For more details, you can visit this helpful article: Manage Budgets

 

The Community is always here if you need more help with QBO by clicking the Reply button. I'll see you around. Enjoy the rest of the week. 

Level 1

Re: Same as IntuitGarlynGay, but using a sales receipt which...

Sorry, I think my question wasn't very clear. 

 

I know which Income account I'd like to apply this to but I'm not seeing how I make any selection if I'm matching the deposit. 

QuickBooks Team

Re: Same as IntuitGarlynGay, but using a sales receipt which...

Hello J Austin,

 

You have a great discussion with Raymond about matching bank transactions to payments with fees. Allow me to answer your second question.

 

If a bank transaction finds a match, it will adopt the account used by the matching transaction. This is why you have no option to assign an income account. Thus, you'll just want to be sure you select the right income account for it.

 

Please continue to post on this thread if you have other questions.

 

Have a good day!

Level 1

Re: Same as IntuitGarlynGay, but using a sales receipt which...

Thank you JessT

 

I've realized that the issue was I hadn't properly setup my "Products and Services" so everything was being applied to "Sales". 

 

In order to have the donations recorded to the correct Income accounts I first needed to setup the Products and Services with an option for each of the Income Accounts I wanted to tie to (one for "General Fund" "Designated Giving" etc.). Once those were setup I'm able to select them in the Product / Services section of the Sales Receipt and everything flows properly to my Income Accounts once I've entered the Sales Receipt / Bank Deposit / Matching. 

 

(This may make me look foolish for how obvious it was but I thought I'd throw out the explanation in case anyone else is struggling here) 

 

Thanks for your help. 

 

 

Level 1

@JAustin Instructions

Followed the steps, but now when I run a Statement of Activity Report I have Unapplied Cash Payment Income listed. Any ideas?
QuickBooks Team

Re: @JAustin Instructions

Thanks for looping in, @rb8s.


I appreciate you performing the steps shared by JAustin. 


The Unapplied Cash Payment Income is an account automatically set up by QBO for cash-basis reporting. Payments under this are received but not linked to any sales form or applied before the invoice is created.  


You also need to make sure that the account chosen for the product or service item on the transactions isn’t mapped to a bank (should be income) account type. Doing so will cause the amount to go into Unapplied Cash Payment Income, without an actual payment received.


Let’s resolve this by performing these steps:

  1. Go to the Reports menu and look for Open invoices report.
  2. In the Transaction Type column, locate a transaction listed as a Payment. If it matches on the open invoice, proceed to the next step. 
  3. Click the Payment date.
  4. Under Outstanding Transactions, check the open invoice.
  5. Hit Save and close.

Open invoice 1.PNG Open invoice 2.PNG Open invoice 3.PNG

If the payment transaction doesn’t match an open invoice, follow the instruction below:

  1. Go to the Plus (+) icon and select Invoice.
  2. Enter the same customer, amount and date as the payment.
  3. Click Save and close.
  4. Return to the Open Invoice report.
  5. Find the unapplied payment and click the date.
  6. Under Outstanding Transactions, check the open invoice.
  7. Hit Save and close.

Repeat the same steps until there are no payment transactions anymore. Once done, pull up the Statement of Activity Report again.


For reference, check out this article: Unapplied Cash Payment.

 

Leave a comment if you need anything else. I’m more than happy to help. Have a good one!
 

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