What the best way to show dealer fees for consumer financing would be in QB Online?

Welcome to the Community page, DE1112. 

I can help record your transactions in QuickBooks Online.

You'll need to create a new service item and select an expense account.

Here's how:

1. Go to the Gear icon.
2. Select Product and Services under Lists.
3. Click New.
4. Select Service.
5. Add the name under Name and select an expense account under Income account.
6. Click Save and close.

After creating the item, create a credit memo and select the service you've created. Let me show you how.

1. Click on the Plus (+) icon.
2. Select Credit Memo.
3. Select a customer and fill in the necessary information.
4. Under Product/Service select the service item.
5. Add the amount.
6. Click Save and close.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day.

How is this done on Desktop?

I set up my dealer fee in products and services.  My question is, do I show the invoice as paid in full then do the credit memo?

Thanks,

R Jeffries

You can create a credit memo before marking your invoice as paid, dadfixanything. Let me equip you with further information to help you with your task.

In QuickBooks Online, a credit memo reduces the balance from customer invoices. You can no longer apply it to an invoice if it was already marked as fully paid. Hence, be sure to leave it open and proceed to these steps to create a credit memo:

1. Select + New, then Credit memo.
2. Choose the customer from the Customer dropdown.
3. Provide the credit memo details: Credit Memo Date, Product/Service, and Amount.
4. Click Save and close.

After that, here's how to apply the credit memo to an invoice:

1. Choose the Receive payment from the + New button, then specify the customer from the Customer dropdown
2. Select the invoice in the Outstanding Transactions section and pick the credit memo in the Credits section.
3. In the Payment column of the open invoice, enter the credit amount you want to apply.
4. Enter the sum you received from the Amount received field.
5. Fill out the details from the remaining fields of the form.
6. Hit Save and close.

For more information, refer to this material: Create and apply credit memos or delayed credits in QuickBooks Online.

Moreover, you might want to explore these resources for guidance on generating and modifying reports to get a closer look at your current business finances:

• Run a report in QuickBooks Online
• Create enhanced custom reports in QuickBooks Online

We're always around if you need additional assistance applying credit memos to invoices in QuickBooks Online. Add your queries through the Reply button below, and we'll get back to you as soon as possible.

Hello, 

when creating the new service item, do I need to mark it as taxable or non taxable? I’m worried that it will throw off the balance on the invoice if marked as taxable. 

Thank you!

You can consult with your accountant whether to mark your new service item as taxable or non-taxable, Catherine.

First, it's best to consult with a tax professional about whether to mark your new service item as taxable or non-taxable as it depends on the tax regulations applicable to the specific type of service you're providing and the location where it's being provided.

Also, they can help you understand how it might impact the balance on the invoice and prevent incorrect tax calculations and reporting.

You can check this resource to guide you in setting up product and service items: Add product and service items in QBO.

In case you want to edit your inventory entries, refer to this article: Adjust inventory quantity on hand in QBO.

On the other hand, consider checking out our QuickBooks Live Expert Assisted team. They can help you with your inventory items and transactions which could improve your accounting workflow.

Please feel free to revisit this thread if you have further questions or issues.