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Intuit
5 helpful votes

Record bank charges when receiving payment from customer

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:

  1. Select the + New button.
  2. Select Journal Entry. Then, enter 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. Select Save and Close.

To settle the open invoice with the Journal Entry:

  1. Select Sales (or Invoicing), then select All Sales.
  2. Locate the invoice which has incurred the bank charges.
  3. Select Receive payment on the top right of the invoice.
  4. Under the Receive payment page, tick to select the invoice and the Journal Entry (located at the second table below)
  5. Make sure the Amount received is the correct (total invoice amount - bank charges = Net amount received)
  6. Select Save and close.

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