Bank fee on return funds

I'd be glad to help you record the bank charges in QBO, markatmakinity.

You can add a second line item in the bill payment or create a separate expense transaction for the bank charges. Here's how:
 

1. Click the + New button and select Expense.
2. Indicate the name of the bank in the Payee field.
3. Enter all other details including the amount, date, and memo or description.
4. Use the Bank charges account in the Category column. 
5. Click Save and close. 

If the transaction is downloaded in QBO through Online Banking, follow the steps in this article in how to handle the transaction: Categorise and Match Online Bank Transactions in QuickBooks Online.

The Community is always here of you need anything else. We're always here to guide and assist you anytime you need help. 

No. I do not want to record the bank charges separately. Supplier funds were returned by the bank and so I need to show that the supplier returned full amount and that bank charged fees against the amount.

Thanks for the reply, markatmakinity.

First, you need to void the cheque since the payment didn't go through. Then, you'll need to create an expense transaction to record the fee.

1. Go to the Expenses menu, then select Suppliers.
2. Select the supplier you paid. Then, find and select the cheque.
3. Tap More, then select Void.
4. Confirm you want to void the cheque, then select OK.

Once done, you can follow JenoP's steps to record the expense transaction.

Another way to record it is by creating a bank deposit. From there, we can add both the returned funds and the fee. Follow these steps:

1. Go to the + New button, select Bank deposit.
2. From the Add funds to this deposit section, you need to add two lines.
   • Accounts Payable Account - for the returned 1000 Euros.
   • Expense Account - for the processing fee of 88.28
3. Add all details required including the bank, supplier, and date.
4. Tap Save and close.

This is how it looks like:

If you need to process another payment, simply create a new cheque and the deposit you created will pop up so you can link them.

You may also visit our Help Articles page if you need more references in managing your business.

I'll be here if you need anything else. Take care!