My Quickbooks Record Deposit screen doesn't look like any of these examples I have seen.  I believe I have an older version but as you said they all should work.  I would love to upload a screen shot but your Q&A doesn't give me that option.  Possibly there is a help line of some sort that could assist me?

If you post your reply as an answer instead of a comment, then you can attach a screen shot.

This video is very helpful. How do I record a refund when I issued the refund through Square while accounting for the refund of the fee to myself and the original amount to the customer? For example, Bob paid $100 to me and I was charged $2.75 for a credit card fee, so the deposit was $97.25 to my bank account. One week later I had to refund Bob $100. $100 was refunded via my checking account (through Square) and because Square refunded me the original credit card fee of $2.75, they only took $97.25 out of my checking account. The Quickbooks deposit window won't allow me to enter the +2.75 to account for Square refunding me the credit card fee. Is there a proper way to enter this refund without having to do a journal entry? Hope that makes sense!

I think I figured it out. I created a sales receipt from Square to notate the refund of the $2.75 credit card fee. I created a new item for the refund of the fee and attached it to an expense account with the other credit card fees, versus attaching it to an income account. Quickbooks asked me to confirm that I wanted to use an expense account. I said yes and was able to attached the sales receipt along with the refund to the customer to the same deposit and recorded it with no problem to match the charge from Square.

This was super helpful! Thank You!

When I follow these steps, it appears the only option is to put the cc charges to an expense account.  I'd like to set up a product for cc fees and record them there instead of directly to an expense account.  Is this possilbe?

Edit the item and checkmark the box on the left. Now you have an Expense account link and an income account link. Square is not a Customer; that isn't part of sales if it is a refund of your fee. You can enter that into the next blank line of the Make Deposit screen. CC charges are never added to Customer Sales; they are your option to accept processing by that service or agency. Your customer paid you in Full; You incurred that fee, not them, from Banking, not Sales. So, a fee you Incurred that reduces your Deposit means you use the next blank line in the Deposit scree to enter a Negative value posting to a Banking Fee Expense account, to end with a Net Deposit.

I think I'm missing something. Assuming credit card fees are an expense account on the P&L, and you are entering these expenses as negatives, won't it mess up financials?

@higginsonabby
"Assuming credit card fees are an expense account on the P&L, and you are entering these expenses as negatives, won't it mess up financials?"

Entering as Negative in the Deposit = shows you incurred an Expense.

For those of you familiar with Debits-Credits:
The Deposit to banking is a Debit
The details are Credits
Checks against Checking are Credits
The details here are Debits, such as Debit Banking Fee

So, putting a Negative Detail into your Deposit screen = just created a Debit to that Banking Fee Expense account.

Everyone of the desktop products allow multiple line items in a deposit. Other than the deposit option you setup a bank type account in your chart of accounts for credid card payments. Make your deposits here, write checks from this account for the processing fees, and transfer funds from this account to your bank account when funding status is known.

This is my screen shot of the Record Deposits screen.  How can I add another line?

Click OK and add the line in the next screen.  Here you're just selecting the payments to deposit.

Thank you so very much, this was driving me crazy.  I have got it done now.

You're welcome -- glad I could help.

I'm having the same issue/question with qb online.  I cannot see a record deposits screen (after I record an online sale as a sales receipt).  We've been doing them as invoices so that we can enter the credit card fee expense.  Trying to find a new way, and I can't make these suggestions work with qb online.

Hi iamluvinlife,

 

I'm actually seeing 50.00 on the screenshot in Step 2: Receive the Payment. The amount is the same as the invoice.

 

When you pay your invoice, pay it in full. Then, only deduct the credit card fees when you deposit the payment, like how Jen_D do it in her screenshot in Step 3. Please do not enter zero, you'll get an error if you do that.

 

Let us know if you have other questions.

Perfect thank you

Hello Samipami,

 

The Select the payments included in this deposit section will only appear if you have created sales transactions (sales receipts or invoice payments) that are deposited to Undeposited Funds.

 

It's possible that the invoice payment was deposited directly to the bank account. You can review the Deposit to field of the invoice payments.

 

Let us know if you need anything else. We got your back!

Thank you!  This is freshwatersensations under a different username.  One question, the account to which I'm depositing (negative) funds...you list a "Credit Card Fees (Expense Account)."  I'm not sure which account I should choose.  Do I have to list an account?  Does this mean expense CATEGORY?  It all comes out of the business, and we use reports to break down the expenses by category.

Expense account is a Type; Category is some sort of additional cross-reference.

 

Example:

 

My total sales in UF to select is $5,000 but I see I incurred a $10 Wire Fee for a payment to me made electronically. In reality, my Bank Deposit was $4,990. That means I select the $5,000 of customer payments and I enter the Negative $10 as Bank Fee Expense to me. The reason I Lost that amount, is the Expense account I put it against.

 

Net deposit = $4,990 "Net" = The Math.