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arkvalleyinfo
October 16, 2018
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How to track full donation amounts and processing fees on Quickbooks?

  • October 16, 2018
  • 4 replies
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I'm using Quickbooks online for non-profits. When I receive a donation via Square Space/Stripe or Facebook, I create a Sales Receipt for the donor with the full amount donated. However, Stripe and Facebook charge a processing fee for each donation and this amount is subtracted from the donation. Because there is a discrepancy between the amount deposited and the amount on the Sales Receipt, often when I try to Find Match on the Transactions page the correct Sales Receipt will not appear (but will appear if I change the Sales Receipt to be closer to the actual deposited amount). I would like to be able to Match the Sales Receipt with the deposit and add a line to the transaction which incorporates the fee. This way I can track the fees charged as well as the actual donation someone has made. How do others go about tracking the fees and the donation amounts? 

Best answer by Malcolm Ziman

Same as IntuitGarlynGay, but using a sales receipt which you say you do, not an invoice:

When you create the sales receipt, choose  "Undeposited Funds" in the "Deposit to" box, not the bank account

Then create a Bank Deposit to the bank account, and you will see the full amount in the "Select Existing Payments" section. Select it.

Then, In the "Add New Deposits" section of the same deposit, enter the fee as a negative, and in the Account column enter Processing Fees or similar expense.  Save.

The net amount of the deposit should now match what's in the Bank Feed.

4 replies

M
Malcolm ZimanAnswer
October 16, 2018

Same as IntuitGarlynGay, but using a sales receipt which you say you do, not an invoice:

When you create the sales receipt, choose  "Undeposited Funds" in the "Deposit to" box, not the bank account

Then create a Bank Deposit to the bank account, and you will see the full amount in the "Select Existing Payments" section. Select it.

Then, In the "Add New Deposits" section of the same deposit, enter the fee as a negative, and in the Account column enter Processing Fees or similar expense.  Save.

The net amount of the deposit should now match what's in the Bank Feed.

    A
    arkvalleyinfoAuthor
    October 16, 2018
    Thanks! Doing it this way fixed the error I was getting in the donors section.
    A
    Anonymous
    October 16, 2018

    Hi user57879,

    Let me share an answer that I gave to a Community user who asked a similar question.

    https://community.intuit.com/replies/3165429

    Let me know if you have any questions. Thank you! 

    A
    arkvalleyinfoAuthor
    October 16, 2018
    Thank you! This is very helpful. Now that I've done this the donor has a negative amount as an open balance showing next to their name in the donor tab. It states that it has a "unapplied" status. How do I fix this?
    HoneyLynn_G
    HoneyLynn_G
    August 6, 2019

    Thanks for commenting back, @rb8s.

     

    Yes, you've got it right. The transaction should be recorded that way. However, you don't have to proceed with Step 7, you can just match the deposit with your bank transaction.

     

    To learn more about matching and categorizing downloaded bank transactions, you can click this link.

     

    Keep me posted if you have other questions or concerns. I'm just a post away! Have a good one.

    R
    rb8s
    August 6, 2019
    The problem is that it creates Unapplied Cash Payment Income in the reports. I asked the community about this and KhimG, PreciuosB, and others replied that I had to create an Invoice at the end of the process to get rid of them - hence step 7. Any idea how to accept contributions and fees without this issue? Thank you, Rick
    AlcaeusF
    AlcaeusF
    August 6, 2019

    Thanks for that information, @rb8s 

     

    Since the entire process creates an Unapplied Cash Payment Income in the reports, I highly recommend creating an invoice and link the unapplied payment (like what you're referring to as step 7). The details provided by my colleagues @PreciousB  and @KhimG above will walk you through the steps to complete the process. 

     

    Here's how:

     

    1. Click the Plus icon located on the upper right to create an Invoice (or Pledge).
    2. Enter the deposit customer name, amount and date as the payment and hit Save and close once done.
    3. After that, go back to the Plus icon to Receive Payment.
    4. Select the deposit customer name again, then math the invoices on the Outstanding Transactions section and the Unapplied Payment on the Credits section by placing a checkmark on them.
    5. Tick Save and close to complete the process.

     

    Once done, pull up the Statement of Activities report again to double-check. Here's how:

     

    1.  Go to the Reports menu located at the left pane.
    2.  Scroll down to Business overview section and click the Statement of Activities report to open.

     

    For additional resources, consider checking out this article: What's Unapplied Cash Payment?

     

    Please keep me posted if you have any other issues or concerns in the comment section. I want to make sure everything is taken care of for you.

    BigRedConsulting
    BigRedConsulting
    December 3, 2022

    @arkvalleyinfo   RE: However, Stripe and Facebook charge a processing fee for each donation and this amount is subtracted from the donation.

     

    Why do you do that? When I donate using a credit card I get a receipt for the full donation amount, which seems proper. I don't think there's any need for a company to reduce the donation by fees charged in this way.

     

    It doesn't help you as a non-profit company but it does hurt your donors, assuming they can deduct their donations, so I don't see the point.

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