How do I account for card payment fees?

Yes, Info. Rest assured that you are on the right track in utilizing the split function to account for card payment fees in QuickBooks Online!

In QuickBooks Online (QBO), splitting a transaction means dividing it into different parts and assigning separate accounts or categories to each part of the transaction.

Before we can dive into the solution, you need to set up an account in the Chart of Accounts first. This process helps you record the various components of a single transaction and correctly allocate them to different accounts or categories.

From the Transaction, click the Chart of Accounts under the Gear icon section:

1. Go to Settings ⚙ and select Chart of accounts.
2. Select New.
3. Enter an Account name. 
4. Select an Account type, like credit card payment fees, and then choose the Detail type from the dropdowns.
5. Find out more about account and detail types.
6. If you choose a Bank, Asset, Credit card, Liabilities, or Equity account, enter Opening Balance, and fill out the starting date in the As of field.
7. (Optional) Add a Description to add extra information about this account. 
8. Select Save. 

Next, proceed to the splitting transaction to allocate different amounts to different accounts or categories, such as when recording multiple charges on a credit card statement or when you have payments that include both the original invoice amount and transaction fees. 

Please refer to the steps below:

1. Go to Transactions and choose Bank Transactions.
2. In the For Review tab, pick the transaction you want to split.
3. Select Split which opens the Split transaction window.
4. From the Category dropdown, select the categories you want to split the transaction into.
5. Enter an Amount for each split so the Difference shows $0.
6. Choose a Supplier or Customer name for each split.
7. Pick Apply and accept.

This will ensure that the total amount of money you receive in your account matches the original invoice amount, while also accounting for the fee.

In addition, discover the steps involved in setting up subaccounts in QuickBooks Online's chart of accounts, which have several benefits including better organization and the ability to generate more comprehensive reports: Create subaccounts in your chart of accounts in QuickBooks Online.

We'll be right here to support you along the way. Let me know if there are things you need to clarify about your card fees by adding a comment below. Keep yourself safe.