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

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

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.

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?

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. 

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. 

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!

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. 

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.

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!