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lizelle-cjctax-c
Level 2

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

 
Solved
Best answer February 05, 2021

Best Answers
JamesDuanT
Moderator

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Thanks for keeping us posted with matter, lizelle-cjctax-c.

 

Yes, undoing thousands of transactions will be a lot of work. The fastest way to offset the amounts would be to create a journal entry. However, I'd recommend consulting your accountant before creating the entry. They can guide you with this or even provide you another option to offset the amounts.

 

We appreciate you for considering LieraMarie_A's suggestion in correcting your future transactions.

 

We'll be right here if you have additional queries. We'd be glad to further assist you. 

View solution in original post

9 Comments 9
AlexV
QuickBooks Team

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Good day, lizelle-cjctax-c.

 

Once you record the deposit for the invoice payment, we can deduct the R6.80 from it. You can follow these steps:

  1. Create an invoice payment and select Undeposited funds as a Deposit to account.

  2. Click the +New button, select Bank deposit.

  3. On the Account drop-down, select an account you want to put the money into. Check the box of the transaction you want to deposit.

  4. From the Add funds to this deposit section, enter -6.80 (negative) in the Amount field, and the account where you want to track it.
  5. Select Save and close.

You'll want to check these links. These will walk you through how to record payments and deposits in QuickBooks Online:

Post again here if you need anything else. We'll respond as soon we can!

lizelle-cjctax-c
Level 2

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Thank you for your response. 

I couldn't give you the bigger picture earlier as there was no space. 

 

Our bank transactions are automatically downloaded. I then match the payment received to the client and the invoice. There is then always R6.80 overdue on the invoice. We never receive this R6.80 as the bank takes this when debiting the client. 

 

I need to write off this R6.80 and in the process "close" the invoice as paid completely. 

 

I currently have about 400 invoices that show partially paid - overdue R6.80

 

Here is an example

 

Adrian_A
Moderator

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

We can create a Journal Entry to write off the R6.80 on the invoice, lizelle-cjctax-c.

 

Let me guide you how:

 

  1. Click the + New button and then select Journal entry.
  2. Select Accounts Receivable in the ACCOUNT column.
  3. Enter the R6.80 amount on the CREDITS field.
  4. Select the customer's name.
  5. In the next line, select the offset account and enter the amount under the Debit column.
  6. Click Save and close.

 

Afterward, we'll have to apply the JE to the existing credit. Here's how:

 

  1. From the + New button, select Receive payment.
  2. Enter the name of the customer in the Received From field.
  3. Select the invoice and choose Discounts & Credits.
  4. Under the Credits tab, select the available credit and select Done.
  5. Select Save & Close.

 

That should do it! Let me know if there's anything that I can help. Keep safe!

lizelle-cjctax-c
Level 2

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

I'm not sure if I'm just being an idiot but this doesn't work.

 

When creating the journal entry the R6.80 doesn't reflect as "paid" on the invoice. The invoice still shows as overdue. Please see attached

AlexV
QuickBooks Team

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Let me continue what I started so we fixed this, lizelle-cjctax-c!

 

I just want to make sure that we're on the same page. Is the R6.80 a bank fee? Was it deducted from the total payment you received? If so, you can follow the steps I shared above.

 

Record the invoice payment worth R2,890.08 (or the exact invoice amount) and deposit it to the Undeposited funds (UF). Once you make a deposit, from UF to the bank in QuickBooks, add the R6.80 as a negative amount on the Add funds to this deposit section. Make sure that the total is the same as the actual fund you received so you can match the downloaded transaction and the deposit you created in QuickBooks Online.

 

Another way to fix it is by adding a new transaction upon matching them. On the Match transactions window, toggle the Resolve Difference button at the bottom. The Add resolving transactions section will appear so you can categorise the R6.80 difference.

 

For the detailed steps, here's how to categorise and match online bank transactions in QuickBooks Online.

 

Additionally, I suggest deleting the journal entry you created as it won't offset the invoice balance.

 

Comment again below if you need anything else. Take care!

lizelle-cjctax-c
Level 2

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

We're totally moving in the right direction. Depositing to the UF takes care of the "overdue" invoice issue. My worry though is that we never actually receive the R6.80. 

 

You are correct, the R6.80 is a bank charge. 

 

So lets say I invoice a client for R1898.07. We run the debit order for the R1898.07. However, we only receive R1891.27. I use the "match" function to record this payment which then obviously leaves me with R6.80 unaccounted for. 

 

If I use the UF account, can I then "deposit" the money to bad debts once I'm done? 

 

I've been sitting with this for days so my head is spinning and I'm over complicating. 

LieraMarie_A
QuickBooks Team

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Thanks for the clarification, @lizelle-cjctax-c

 

I've got all the steps to make sure everything is accounted for. If you receive a payment less than the invoice amount due to bank fees, we can use the Resolve Difference feature to account for the bank charge.

 

First, let's undo the invoice you've matched in the bank feeds. Doing this will allow us to make the changes as it will reverse the transaction and go back in the For Review tab.

 

  1. Go to Banking.
  2. Select the blue tile for the account you want to review.
  3. Select the Categorized tab.
  4. Find the transaction you want to remove.
  5. Select Undo from the Action column. 

The screenshot below shows you the last three steps.
Capture.JPG

 

These instructions are available from our guide on categorizing and matching online bank transactions in QuickBooks Online.

 

Then, follow these steps below to create a Bank Charges account:

  1. Go to Accounting from the left menu.
  2. Choose Chart of Accounts.
  3. Click New.
  4. In the Account dialog, create an Expense account for Bank Charges, and give it a name, e.g Bank Charges or Bank Fees.
  5. Select Save and close.


You can refer to our guide on adding an account to your chart of accounts in QuickBooks Online for your convenience.

Once done, you can match the invoice with the bank transaction and use the Resolve Difference feature to record the bank fee. Let me show you how.

 

  1. Go to Banking on the left menu and choose Banking.
  2. On the Bank and Credit Cards page, make sure you have selected the Bank Account with the transaction.
  3. Locate the transaction with the amount of 1891.27 in the For Review tab.
  4. Tap Find Match.
  5. In the Match transactions window, choose the checkbox of the appropriate Invoice.
  6. Enter the exact payment 1898.07 in the Payment field.
  7. Tick Resolve Difference to open the Add resolving transactions fields.
  8. Click Add new transaction.
  9. From the drop-down list in the Category field, select the Bank Fees expense account you created.
  10. Enter a negative amount for the bank fee, e.g -6.80.
  11. Press Save and close.

Here's an example:

Capture.jpg

 

Your transaction is now matched off against the invoice and the bank fees are accounted for. Feel free to visit our Banking page for more insights about managing your bank feeds.

 

If you have any other questions or clarifications, feel free to leave them in the comments below. I'll get back to you as soon as I can.

lizelle-cjctax-c
Level 2

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Thank you. I understand what you've done here. 

 

Instead of matching R1891.27, I will match R1898.07 and "deduct" the R6.80 using the resolve button. Can't believe I didn't think of that. 

 

If i continue to use this as an example:

"So lets say I invoice a client for R1898.07. We run the debit order for the R1898.07. However, we only receive R1891.27. I use the "match" function to record this payment which then obviously leaves me with R6.80 unaccounted for. "

 

 

 

Unfortunately though, I do not have the time to undo 1000's of transactions to redo them. Is there no other way to sort this out?

 

I will use this method for future transactions though. 

 

Thanks 

JamesDuanT
Moderator

We have R6.80 per client invoice that needs to be written off. This is a bank charge for the debit order run. We need the invoice to show as fully paid. Help please

Thanks for keeping us posted with matter, lizelle-cjctax-c.

 

Yes, undoing thousands of transactions will be a lot of work. The fastest way to offset the amounts would be to create a journal entry. However, I'd recommend consulting your accountant before creating the entry. They can guide you with this or even provide you another option to offset the amounts.

 

We appreciate you for considering LieraMarie_A's suggestion in correcting your future transactions.

 

We'll be right here if you have additional queries. We'd be glad to further assist you. 

View solution in original post