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WhiteDuck
August 21, 2023
Question

Merge expense cost and transaction fee

  • August 21, 2023
  • 1 reply
  • 0 views

I have an account denoted in Sterling, with which I make debit purchases of general traveling expenses abroad. My bank charges me a fee for reconciling to foreign currencies and this appears in my account as a separate fee from the expense. I therefore have one receipt and two incurred costs for that. 

 

Can I in QBO have the one receipt account for both outgoing lines?

 

Moreover, is this something I should do? Or do I need something else to validate the transaction fees? Would a bank statement be adequate? This is of course for the purposes of tax-deductibility.

 

Thanks in advance.

1 reply

Q
QueenC
August 21, 2023

Good day, @WhiteDuck. Thank you for reaching out to us.  I'm here to assist you in accomplishing your goal which is to account both costs (expense cost and transaction fee) in a single transaction in QuickBooks Online. Together, we'll work towards achieving your desired outcome

 

In QuickBooks Online (QBO), you can account for both the expense cost and the transaction fee using a single expense transaction. Here's how you can do it:

 

 

Note: It's always a good idea to consult your accountant before doing anything to make sure that we're using the right accounts based on your business preference so your books won't be messed up. If you don't have one, check out our website: Find a ProAdvisor.

 

  1. Click on the + New button then select Expense under Suppliers.


     
  2. Select the Payee and the Payment account.
  3. In the Category details section, select the appropriate expense account for the expense cost on the first line, then enter the amount.
  4. On the second line, select the appropriate transaction fee account and enter the amount. If you still don't have a transaction fee account, you can create one. 


     
  5. Fill in other necessary details.
  6. When done, hit Save or Save and close.

 

By doing this, you will have one receipt that accounts for both outgoing lines.

 

Regarding the validation for transaction fees, a bank statement can be adequate as supporting documentation. It can help validate the fees incurred and provide evidence for tax-deductibility purposes. Make sure to keep your bank statements as part of your records for tax purposes.

 

Lastly, I've included this article that you may find helpful in case you'd want to know more about reviewing, categorising, and accepting transactions into QuickBooks Online: Add and match downloaded bank transactions.

 

If you have any further questions or require additional support, please don't hesitate to reach out. We are committed to helping you navigate through this process and ensuring that your expenses are accurately accounted for. Your satisfaction is our top priority. Have a wonderful day.

W
WhiteDuckAuthor
August 28, 2023

This does not allow me to match two transactions to a single expense. I can't add either transaction, for the actual cost of the expense, it won't allow me to match the downloaded bank transfer to the transaction without putting a negative reconciliation in to the value of the transaction fee. Even with this, I can't add the transaction fee in as it won't match it. The transaction fee doesn't find any matches whatsoever.

 

The linked guide does not cover this.

 

For some reason I can't upload photos, but I have separated the cost and fee into separate lines within the expense. The software automatically picked up that the fees were card fees as well! But regardless, it won't let me match them.

 

I would have expected to be able to multiselect both transactions in the "for review" pane and click a button to merge them into a single expense.

 

Am I doing something wrong here?

 

AlcaeusF
AlcaeusF
August 28, 2023

Hi WhiteDuck,

 

Thank you for getting back to us regarding your banking concern. Allow me to chime in and help you manage your downloaded bank transactions in bank feeds.

 

The data shown in the For Review tab will depend on the transactions coming from your bank. The option to match two pending bank transactions to a single expense isn't possible.

 

If you already have the transactions recorded correctly in QuickBooks, you can disregard the downloading data in Banking. You can use the Exclude feature, so you no longer need to match them.

 

The only way to match the transactions under the For Review tab is to separate the expense and the fee. QuickBooks only allows matching if the amounts and other information are the same.

 

For your issue with uploading a screenshot, use a private browser or a different one like Microsoft Edge. This way, we can check if the upload issue is browser-related.

 

Aside from connecting your bank and credit card accounts to QuickBooks, you can also upload data manually. I have an article here you can check out for additional guidance with importing bank data to our system: Format CSV files in Excel to get bank transactions into QuickBooks.

 

Keep us posted if you need anything else regarding our QuickBooks Banking or your downloaded data. We're available 24/7 to lend a hand. Have a great day.

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