How do I book my credit card transactions into QuickBooks from a 3rd party - showing the customer paid invoice in full. Though 3% of sale is CC fee . So sale is actually minus 3% which needs to be expensed..
Thank you for your response. Yes I understand that. That is why I don’t know what to do with the difference of what I originally invoice the customer versus what I actually collect on the invoice because this will be 3% or so less because of the Square fee. How do I in QuickBooks reflect that the invoice is paid in full even though it’s 3% short? I have to write this difference off somewhere I assume. I just didn’t know how to do it it’s a quickbook/accounting question.
I solved this by not having Square do the automatic bank deposit. I turned this feature off. The money is then in my 'undeposited funds' account. At the time of the credit card deposit to the bank, I simply choose the deposit(s )that are reflected in the deposit, then add another line to the deposit using 'square service charge ' (expense account) and a negative amount equal to the actual deposit dollar amount sent to my bank.
That way square will show the invoice as paid (example $100 charge and $100 square payment) and the bank deposit will also match (example $100 charge, $100 less $2.00 fee recorded on bank deposit = $98.00 deposit which matches the bank deposit)
There is no way to have this automatically happen. Either the invoice will show the fee as unpaid (in which case you can record an additional payment in the aomount of the fee for the invoice as a 'square service charge expense 'account to clear it). I tried this and it works and tracks but takes more time than just doing a manual deposit. You would need to manually apply an additional payment for the fee to each invoice. Every time.
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