Skip to main content
M
mltch5
February 10, 2020
Question

how to record donation fees paid by the donor

  • February 10, 2020
  • 3 replies
  • 0 views

We are running a non profit and use sales receipts to record donations. We use WEPAY which offers donors the option of paying the transaction fee. Most of the time our donors choose to pay the transaction fee. How do I record that in QB. The merchant institution does not bill us for the transaction fees, they simply deduct it from the donations before they transfer money. 

3 replies

MarsStephanieL
MarsStephanieL
February 10, 2020

I'm here to assist you with the transaction fees, mltch5.

 

You can add the transaction fee on your invoice, you'll have to add another line on the transactions field so you can enter the details and amount.

 

Let me walk you through the steps:

 

  1. Click on the Plus New icon.
  2. Select Send Invoice tab.
  3. Select the name of the Customer.
  4. Under the transaction details, enter the original invoice amount.
  5. Add another line and enter the transaction processing fee amount and indicate it on the description field. Make sure that the account used is under bank fee expense.
  6. Click Save and close.

 

To learn more how credit card processing fee works in QuickBooks, please check out these articles:

 

 

Please comment below if you have other concerns about credit card fees. I’d be glad to help you out. Take care.

M
mltch5Author
November 6, 2020

There is no invoice. Here is the process. The donation comes through a WePay merchant account. In QB I enter a sales receipt for the donor listing the gift and the wepay fee. THe wepay fee was set up as a product/service linked to Bank Fees. Then I make a deposit into bank account, selecting that sales receipt. At the bottom of the deposit slip I subtract the wepay fee in the deposit slip for the respective bank account. That should zero out the wepay fee right? 

N
Nick_M
November 6, 2020

Hi there, mltch5.

 

Thank you for dropping by the Community today. After reviewing your question, you're definitely going to want to reach out to an accountant, this is because they will be able to show you how and where to properly record the fees. If you don't currently have an accountant, you can check out the Find a ProAdvisor website. That's where you can find an accountant who is also a certified expert in QuickBooks. 

 

In the meantime, I'm also including a few helpful articles for you to check out:

If you have any other questions, feel free to post here anytime. Thank you and have a lovely day. 

W
WGBCFinance
February 28, 2022

Did you ever find the answer to your question? I'm in the same situation. I volunteer for a church that does not issue invoices. We recently added the online option for the donor to pay the merchant fee. I'm at a loss on how to document this in QB desktop. It was much easier when the donor didn't pay the merchant fee!

G
GlinetteC
February 28, 2022

Thanks for reaching out to the Community, WGBCFinance.

 

I've got a way you may consider doing to record the donation fees paid by a donor in QuickBooks Desktop.

 

You'll want to create a Sales Receipt then choose Undeposited Funds in the Deposit To drop-down menu, not the bank account.

 

Then, create a Bank Deposit to the bank account. Here's how:

 

  1. Go to the Banking menu 
  2. Select Make Deposits and you will see the amount in full.
  3. In the Select Existing Payments section, select it.
  4. In the Add New Deposit section of the same deposit, enter the amount of the fee as a negative.
  5. Select the bank where you want to deposit the funds.
  6. Click Save and Close.

 

With these steps, your net amount deposit should match what's in your bank feeds.

 

You can check the deposit payments into the Undeposited Funds account in QuickBooks Desktop for additional information.

 

Let me know how the steps work for you. I want to make sure you'll get back to business.

W
WGBCFinance
February 28, 2022

Thank you! I'll try this when I go into the church tomorrow. I really appreciate your quick response and shared wisdom.

W
WGBCFinance
June 14, 2024

When entered this way doesn't it give the donor credit for the entire amount of $51.50?

F
FaithA
June 14, 2024

Hey there, WGBCFinance. Welcome back!  

 

Regarding your query, yes, we can definitely follow the process suggested by my colleague @Clark_B in cases where the donor takes care of the $1.50 fee. This means the donor would cover the full amount of $51.50.

 

For more information on bank deposits in QuickBooks Online, you can check out these helpful articles:

 

 

To get a comprehensive overview of the deposits into your bank account, you can run a Deposit Detail report: Record and make bank deposits in QuickBooks Online.

 

I'll be around to assist you if you have additional queries in recording donation fees, or with any QuickBooks-related matters. We're always eager to support you. Stay safe.

H
h4clarke
February 19, 2025

I did as was suggested above: 

 

Donor gave $51.50

I add to the deposit a (-)1.50 to ensure the deposit matches the actual bank deposit, and record the amount received for the fees.  

when I go to reconcile I have the correct deposit, but the fee is showing as an expense to clear? How to clear these in reconciliation?

 

Then my fee account has both a deposit AND an expense - doubling the amount of the fees - when in fact it should zero out?

 

what am I missing?

Terms & ConditionsAccessibility statement