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Risho
October 31, 2020
Question

How do I apply a service charge to a bill payment credit

  • October 31, 2020
  • 1 reply
  • 0 views

Vendor is paid in advance e.g. $100 thru third party, which charges a service charge e.g. $5. Bank cheque is $105 (accounts are A/P and s/c). Bill is received and credit ($100) applied to bill. However, when opening the cheque Transaction History, it shows the $5 as bill payable. Do you just leave that as is or did I enter the cheque wrong? A/P in trial balance is good and bank feed agrees. If I change the cheque amount and make it 2 cheques, my bank feed will disagree and the $105 will remain outstanding.

1 reply

Rebecca R
Rebecca R
November 2, 2020

Hi Risho,

 

Accounting for service charges is an important step in making sure that your books are balanced. It's fantastic that you've been using the bank feed feature in QuickBooks Desktop to make accounting for transactions and service charges easier. Let me explain how you can take care of that $5.

 

What I recommend is entering a second bill in the amount of $5 to account for the service charge. Then you can match both the original bill and the service charge to the $105 transaction in your bank feed. Here's a great article that might be helpful when it comes to matching those transactions: Add and match Bank Feed transactions in QuickBooks Desktop.

 

Reaching out to an accounting professional in this situation is another important step. They can ensure that everything is correctly accounted for in the Chart of Accounts. If you're looking for a QuickBooks Certified accountant to work with, the link below will point you in the right direction. Simply enter your City or Postal Code and click Find a ProAdvisor and you'll be directed to accountants in your area that would be happy to support you.

 

I know you'll be back to business in no time! 

R
RishoAuthor
November 4, 2020

Thank you  , that worked except for 1 doubt. I entered the service charge to a different vendor name and paid both in one same cheque. The register shows as 2 cheques: 1 each. Other than entering and paying both bills to 1 same vendor, is there any other way to make QB show 1 sole cheque? I prefer not to mess with the supplier account, if possible. Thank you again

Rebecca R
Rebecca R
November 4, 2020

Thanks for letting me know @Risho. Since the service charge is paid to a separate vendor entirely, there won't be a way to show both bills on one cheque. As I mentioned in my previous message, reaching out to an accountant might help you with recording this transaction in the best way for your business. Accountants are familiar with multiple ways to account for specific transactions, such as by using journal entries. I'm confident your accountant can point you in the right direction on this one.

 

Since we're always looking to expand on and improve the features that we offer in QuickBooks, I want to encourage you to submit feedback on this issue. Using the Help menu, you can choose to submit Feedback directly to our product development team. I also encourage other members of our QuickBooks Community to chime in if they have any suggestions.

 

Enjoy the rest of your day! 

 

 

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