Skip to main content
C
ctann
March 17, 2023
Question

Dealing with a hidden charge on a customer invoice payment

  • March 17, 2023
  • 1 reply
  • 0 views

Hi,

I am using quickbooks online, and have a foreign currency account, into which I receive payments from my client, against previously generated invoices. This is a manually managed account (no sync capability), so I need to manually enter transactions when I receive the payments.

When the client pays, their bank must withhold a payment fee on their end, as I receive less than the full invoice amount. I enter this transaction, and of course the invoice shows as having a remaining due balance. So my question is, how do I clear this unpaid balance (I am responsible for the fees on the payment).

I could create a "dummy" bank fee customer, generate an incoming payment from that account against the invoice for the remaining balance, and that would balance out the invoice. 
I could then generate an outgoing payment to a similar dummy supplier account, for the same amount.

Is that the right thing to do? Sounds a little convoluted, but in my mind it should probably add up... 

Thanks,

              Chris.

1 reply

C
CharleneMaeF
March 17, 2023

I know a way how you can clear this unpaid balance in QuickBooks Online, ctann.

 

To clear the balance, let's record a deposit for the full invoice payment and add the fees in a negative amount. I'll show you how:

 

  1. Go to + New in the left panel.
  2. Under Others, click Bank Deposits.
  3. Select the invoice payment.
  4. In the Add funds to this deposit field, choose the relevant account.
  5. Enter the bank fees in a negative amount, under Amount.
  6. Click on Save and close.

 

Additionally, I've added these articles that'll help you handle customers' overpayments and delayed credits in QuickBooks Online:

 

 

Please let us know if you need additional assistance in managing your sales transactions. We'll be around to keep helping. Keep safe!

C
ctannAuthor
March 20, 2023

Hi,

 

Thanks for the reply. I tried to follow that, but got stuck on:

 

"Select the invoice payment."

 

When I create a new Bank Deposit, I don't see the "Select the payments to include in this deposit". I just have the header section, and then it goes straight to "Add funds to this deposit"

 

I deleted all of the transactions and will try from scratch.

 

So I just need a little tutorial on first steps here. Take this case:

 

I invoice the customer $100

The customer submits a payment, but their bank withholds $5 in fees

My bank also withholds $5 in fees 

My ending bank balance is $90.

 

So, if you could just outline the steps to follow so my final bank balance reconciles with the $90, and the customer invoice reconciles as being fully paid, it would be much appreciated.



JenoP
JenoP
March 20, 2023

Allow me to join the conversation and offer my help about managing service fees, ctann.

 

You can add a second line to record the banking fees in a negative entry. This will make the amount of the invoice similar to the actual payment that was deposited in your bank. I'd be glad to share all the steps with you. 

 

First, set up the fee as a service item. Here's how:

 

  1. Go to the Gear or Settings ⚙ icon and select Products and services.
  2. Click New, then select Service.
  3. In the Name field, enter a name of the bank fee.
  4. Proceed to the Income account and select an expense account that you want to use for the service fee.
  5. Click Save and close.

 

 

Second, edit the invoice and add the fee. Let me show you how:

 

  1. Open the invoice.
  2. Go to the Product/Service column and select the service fee item that you created,
  3. Enter a negative amount in the Amount column.
  4. Click Save and close.

 

 

After that, you can now match the invoice with the payment that you have in your online banking or register. Let me also share this article for more details: Manually Add Service Fees to Invoices in QuickBooks Online.

 

Reply to me or post more questions in the forum if you need anything else. I'd be glad to jump right back and help you again.

Terms & ConditionsAccessibility statement