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Sam De Pasquale
April 6, 2020
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How to record client payments with fees

  • April 6, 2020
  • 1 reply
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I have a client account which is separate from my main account (it's a sub-account)

 

Please can someone help with the following simple problem

 

I have a client who has paid £50 through an online vendor to pay their invoice of £50. 

£5 of this is deducted as fees so £45 reaches us.

 

I need to register this transaction as £50 in the client account and £5 as fees but can't figure out how to do this as splitting the payment only allows me to add or subtract from a single account, whereas here, I need to add £50 to the client account and subtract £5 from my checking account to cover the fees.

 

The other thing I have tried is receiving the £50 into the client account manually and then creating a journal entry where I debit £5 from the checking account and credit £5 to the "Fees" account - however this then shows up as a POSITIVE £5 (unless I specify them backwards...). Is this the only way to do it? I also then have to manually exclude every transaction from the banking tab as it cannot match £50 received when I only receive £45.

 

Suggestions very welcome.

Best answer by SarahannC

Hello there, Sam De Pasquale.

 

We can manually create a bank deposit within QuickBooks Online. This way, the £5 as fees will be subtracted from your checking account. We'll have to receive the same amount as 50 and deposit it to Undeposited funds by clicking the Deposit To field when receiving the payment.

 

Once done, go to the bank deposit page and record the fees by adding a new deposit. We'll need the Received From, Account, Payment Method and Amount. To guide you further with this, please follow the steps below:

 

  1. Go to +New.
  2. Select Bank deposit under Others.
  3. Let choose an account payable under the Account column.
  4. Enter the total number of fees (£5).
  5. Then, enter -5 under the Amount column. Also, let's make sure that the client's payment and deposited fees are linked to each other. All we have to do is put a check mark next to the client's name. Then, Save and Close.

 

Let me know if you need anything else. I'm always here to help. Stay safe and healthy!

1 reply

S
SarahannCAnswer
April 7, 2020

Hello there, Sam De Pasquale.

 

We can manually create a bank deposit within QuickBooks Online. This way, the £5 as fees will be subtracted from your checking account. We'll have to receive the same amount as 50 and deposit it to Undeposited funds by clicking the Deposit To field when receiving the payment.

 

Once done, go to the bank deposit page and record the fees by adding a new deposit. We'll need the Received From, Account, Payment Method and Amount. To guide you further with this, please follow the steps below:

 

  1. Go to +New.
  2. Select Bank deposit under Others.
  3. Let choose an account payable under the Account column.
  4. Enter the total number of fees (£5).
  5. Then, enter -5 under the Amount column. Also, let's make sure that the client's payment and deposited fees are linked to each other. All we have to do is put a check mark next to the client's name. Then, Save and Close.

 

Let me know if you need anything else. I'm always here to help. Stay safe and healthy!

S
Sam De PasqualeAuthor
April 7, 2020

Thank you SarahannC

 

I have two follow up questions if you don't mind.

 

The first is that I don't understand what you mean by "All we have to do is put a check mark next to the client's name". I can't see anywhere to do that.

 

The second - this still doesn't allow me to match the transaction in the bank transaction feed. What should I do about this? It seems odd to have to exclude every transaction that comes in this way.

Thanks,

Sam

JenoP
JenoP
April 7, 2020

Joining in to offer my help, Sam De Pasquale.

 

The option to put a check mark is on the Bank Deposit window. I've added a screenshot for further details. 

 

Also, it can only be matched if both the downloaded and the transaction in your bank register has the same amount. In this case, you'll need to exclude it since a fee is added to the transaction. Once excluded, you can manually record the transaction or follow the steps that are shared above. 

 

More details about adding or categorizing transactions are discussed here: https://quickbooks.intuit.com/learn-support/en-uk/banking/assign-categorise-edit-and-add-your-downloaded-banking/01/239114. 

 

Please continue to add a reply below if you need anything else. 

 

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