Level 2

Need help matching a square payment to the invoice. Square deducts a CC fee from the total invoice amount.

When I go to match the bank feed deposit to the invoice it gives me two options. One is to match it to the full payment amount imported from square. The other option is to match it to the invoice. If I match it to the payment the invoice still shows as unpaid. If I match it to the invoice it leaves a balance due on the customer account in the amount of the CC fee. Can anyone help?

Reports and accounting

Welcome to the Community, @stephanie52.


Let me provide clarification in handling imported transactions from Square.


If this is still an open invoice, you'll have to receive the payment first before matching it.


To match the full payment including the CC fee, you'll need to make a deposit in QuickBooks for the invoice payment and add the fee on the Add funds to this deposit section as an expense account. Be sure to enter a negative amount for the fee.


Here's an example.



You can also refer to this article for more information about matching an existing transaction: Match and categorize bank transactions in QuickBooks Online.


If you've matched a transaction by mistake, you can always unmatch it and find a new match.


Let me know if there's anything else you need. I'm here and ready to help. Have a good one.

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Level 2

Reports and accounting

When I go to do the bank deposit it gives me this warning.

Has this payment been recorded?

Looks like DPR Construction has 1 open invoice. If the deposit is for that invoice, record the payment in Receive Payment first. That way, your books are accurate.


When I go to receive payment it is for the full amount without deducting the CC fee.


Is this the correct next step? First-receive payment for the full amount Second-do bank deposit less the CC fee.


Just want to make sure I understand. Thank you so much!!

QuickBooks Team

Reports and accounting

You’re doing it right, @stephanie52


You’ll have to receive the payment with the full amount first. 


Here’s how:

  1. Click the +New icon and select Receive Payment under Customers.
  2. Select the customer and enter all the information needed. 
  3. In the Deposit to drop-down, select Undeposited Fund.
  4. Click on Save and Close once you’re done. 

Check this article for more information: How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online


Once done, you can now create a bank deposit, then add a line item in the deposit window and enter a negative amount for the bank fees.


Let me know if you have any other questions about recording the bank fees. I'll be happy to help you out. 

View solution in original post

Level 2

Reports and accounting

So, the next thing that happens is that I still have the deposit in the bank feed in for review. I just excluded the payment. Is that correct?


Also--is there a way to stop square from automatically adding the full deposit to my register? I had to just go in and delete it because obviously it wasn't correct. This seems like an obvious oversight on their part.

QuickBooks Team

Reports and accounting

Hello, @stephanie52


Yes, you can exclude those since you've already recorded those transactions in QuickBooks Online (QBO).


Amounts or transactions that'll be posted to your QBO account will depend on the on what we fetch from your online account. You may check with Square customer support if they can stop adding those full amount.


I've got an article that you might find helpful: Sync with Square Hub.


Let me know if there's anything that I can help. I'm always here to assist. Have a wonderful day!