You may incur bank charges when receiving payments from your customers. As a result, you may experience dilemma on how to record the bank charges.
To record bank charges:
- Select + New.
- Select Journal Entry. Then, enter the Journal Date.
- Under the empty table enter the following double entries:
- First line, Account: Trade and other receivable / Accounts Payable, Credit: Amount, Name: Customer name
- Second line, Account: Bank charges expense account, Debit: Amount
- Select Save and Close.
To settle the open invoice with the Journal Entry:
- Go to Sales then select All sales (Take me there).
- Locate the invoice which has incurred the bank charges.
- Select Receive payment on the top right of the invoice.
- Under the Receive payment page, tick to select the invoice and the Journal Entry (located at the second table below)
- Make sure the Amount received is the correct (total invoice amount - bank charges = Net amount received)
- Select Save and close.