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123146051009589
September 30, 2021
Question

How do I write off a short payment due to transfer charges?

  • September 30, 2021
  • 1 reply
  • 0 views
We made a sale on our new eShop via PayFast. They issued an invoice, which we then duplicated in QBO. When the payment arrived from PayFast, it was R161-odd short due to charges. How should I deal with this short payment in QBO? Thanks.

    1 reply

    AlexV
    AlexV
    September 30, 2021

    Hi 123146051009589!

     

    Thanks for reaching out to us. Let me share the steps on how to record the charges in QuickBooks Online.

     

    First, you'll need to close the invoice regardless of the funds you actually received are short due to the charges. You can follow these steps:

    1. Go to the + New and select Receive payment.
    2. Select the Customer, the invoice, and enter the details needed.
    3. From the Deposit to drop-down, make sure to select the Undeposited Funds account.
    4. Tap Save and close.

     

    Once done, you'll need to make a bank deposit. You can follow the steps here: Record and make bank deposits in QuickBooks Online. From the Add funds to this deposit section, you can add the charges from PayFast. This will deduct the total amount you're depositing.

     

    If the charges are too high that will result in a negative amount and won't allow you to make a deposit any longer, you can create an expense transaction instead.

    1. Go to the + New button and select Expense.
    2. Enter the details needed such as the amount and the expense account you want to use in tracking the charges. 
    3. Tap Save and close.

     

    I added some links you can check. These will help you to easily balance your accounts in QuickBooks Online:

     

    Keep on posting here if you need more assistance in recording transactions. Take care!

    1
    123146051009589Author
    December 3, 2021

    Thank you for the reply.

    I should probably have mentioned that we have our QB Online set up to automatically fetch the bank transactions.  I then use the Banking screen to allocate each payment to the appropriate invoice. We therefore do not use "Receive payment": In fact, my partner was using that instead of the Banking screen, and it has totally messed up our bank balance in QBO, a problem that is going to take years to unravel.  [This is a major pitfall in QBO; I would even call it a massive bug, and a big reason to avoid using the program.]

    Anyway, since we aren't making deposits in QBO, but rather, categorising downloaded transactions directly in the bank account, we can't use your advice.  Any other way to do it, please?

    Thanks and RICKgards

    M
    MirriamM
    December 3, 2021

    Good to see you back and provide additional details about your concern, @123146051009589.

     

    To handle this situation, you'll need first to receive the invoices payment amount using the Receive payment feature. Then, deduct the transfer charges as a negative amount through the Add funds to this deposit section when you deposit the invoice payment. By doing this, you're able to match the bank deposit to the downloaded transaction.

     

    To get started, create an expense account to allocate the transfer charges. Here's how:

    1. On your QuickBooks Online (QBO) account, click Accounting in the left menu.
    2. Go to the Chart of Accounts tab.
    3. Click the New button on the right-hand side.
    4. Create an Expense account and name it Transfer Charges.
    5. Click Save.

     

    After that, add the fees to your deposit.

    1. Receive the payment to the undeposited funds.
    2. Record a deposit.
      1. Select the pending payment to be deposited.
      2. Go to the Add funds to this deposit section, then select the account created.
      3. Enter the fees in a negative amount.
      4. Save the transaction.

     

    Once done, match the bank deposit to the transfer charges from the Banking menu. For guidance in managing your transactions, click this link: Categorise and match online bank transactions in QuickBooks Online.

     

    If you have other questions while managing your transactions, please let me know in the comment section. I'll gladly help. Take care, and I wish you continued success, @123146051009589.

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