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Erica30
Level 1
posted
‎June 07, 2023 03:54 AM
last updated ‎June 07, 2023 3:54 AM

Payfast fee

I'm struggling to understand which method to use when allocating the Payfast deduction on our online orders.

I've looked at both the PayFast and the Yoco payments thread and one doesn't made more sense than the other. I've also looked at the "How to record bank fees" and "Record bank charges when receiving payment from the customer" threads and that has just made me more confused.

 

I have captured the party as their own invoice per online order at the full amount paid on the website, this then gets paid from payfast to our bank account, but they take a fee per party/client as well as 'n small fee when paying out to our bank account - how do I allocate this?

 

Meaning:

Party 1

Online payment - 500.00

Gross - 500.00

Fee - 50.00

Net - 450.00

 

I've invoiced for the full 500.00, how do I capture the payment to reflect that this has been paid in full, but that 50.00 of that went to either bank charges or Payfast?

 

As well as having to pay a charge when paying that out to our bank - would this be a bank charge or do I divide this amount between however many parties I have in that specific batch?

 

Sorry for the long post - a flu and medicine fueled brain that decided it wasn't working anymore...

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Best answer June 07, 2023
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Mich_S
QuickBooks Team
QuickBooks Team
‎June 07, 2023 05:20 AM

Payfast fee

I recognize how important it is for Payfast deductions to be allocated properly in QuickBooks Online, @Erica30. I'm here to guide you through what to do.

 

You looked into the right article (Record bank charges when receiving payment from customer) to record the fees on your online orders. First, make sure to create an expense account to track it. I'll show you how: 

 

  1. Open Settings ⚙ and go to Chart of Accounts.
  2. Click on New.
  3. Select Expense under Account Type.
  4. Select a Detail Type the one that best fits the transactions you want to track.
  5. Fill out all necessary information.
  6. Once done, click on Save and Close.

 

After that, you can already enter the fee by creating a journal entry:

 

  1. Click on + New.
  2. Choose Journal Entry. Then, add the Journal Date.
  3. 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
  4. Click on Save and Close.

 

Once done, you can finally receive the payment for the open invoice:

 

  1. Open the Bookkeeping menu, click on Transactions, then hit All sales.
  2. Find the invoice which has incurred the bank charges.
  3. Hit Receive payment on the top right of the invoice.
  4. Go to the Receive payment page, tick to pick the invoice and the Journal Entry (located at the second table below)
  5. Ensure the Amount received is right (total invoice amount - bank charges = Net amount received)
  6. Click on Save and close.

 

In case you want to personalise and manage invoices in the future, read this guide: Customise invoices, quotes, and sales receipts in QuickBooks Online.

 

Return to this thread if you require additional assistance or have additional questions about customer-related transactions or QuickBooks. Take care!

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1 Comment 1
Mich_S
QuickBooks Team
QuickBooks Team
‎June 07, 2023 05:20 AM

Payfast fee

I recognize how important it is for Payfast deductions to be allocated properly in QuickBooks Online, @Erica30. I'm here to guide you through what to do.

 

You looked into the right article (Record bank charges when receiving payment from customer) to record the fees on your online orders. First, make sure to create an expense account to track it. I'll show you how: 

 

  1. Open Settings ⚙ and go to Chart of Accounts.
  2. Click on New.
  3. Select Expense under Account Type.
  4. Select a Detail Type the one that best fits the transactions you want to track.
  5. Fill out all necessary information.
  6. Once done, click on Save and Close.

 

After that, you can already enter the fee by creating a journal entry:

 

  1. Click on + New.
  2. Choose Journal Entry. Then, add the Journal Date.
  3. 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
  4. Click on Save and Close.

 

Once done, you can finally receive the payment for the open invoice:

 

  1. Open the Bookkeeping menu, click on Transactions, then hit All sales.
  2. Find the invoice which has incurred the bank charges.
  3. Hit Receive payment on the top right of the invoice.
  4. Go to the Receive payment page, tick to pick the invoice and the Journal Entry (located at the second table below)
  5. Ensure the Amount received is right (total invoice amount - bank charges = Net amount received)
  6. Click on Save and close.

 

In case you want to personalise and manage invoices in the future, read this guide: Customise invoices, quotes, and sales receipts in QuickBooks Online.

 

Return to this thread if you require additional assistance or have additional questions about customer-related transactions or QuickBooks. Take care!

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