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If I create an invoice and they pay thru Venmo, we are charged a fee. If we want to cover that fee and put it as an expense, how do we record that against their invoice?

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For example, we're a non-profit basketball booster club. If a player registration is $150, and the Venmo fee is $5.00, we are essentially getting paid $145. If I record as if they paid $145, the invoice still shows they owe $5.00. What's the best way to handle that, and for that $5.00 to show on our "Venmo Fee" expense account?

QuickBooks Online

RainflurryAnswer

@lumberjackhoops-

Unfortunately, QB Online doesn't make this super easy IMO. The best way to record it is to receive payment on the invoice for the full amount ($150) and select Undeposited Funds under 'Deposit To'. Then, go to New > Bank deposit and select the payment. Under 'Add funds to this deposit', select Venmo under 'Received From' (set them up as a vendor if you haven't), select your Merchant Fees expense account under 'Account' (set that up if you haven't) and enter the fee as a negative amount (-$5.00). Click save. The deposit amount will be net of fees and you have the merchant fees recorded as an expense.

RainflurryAnswer

@lumberjackhoops-

Unfortunately, QB Online doesn't make this super easy IMO. The best way to record it is to receive payment on the invoice for the full amount ($150) and select Undeposited Funds under 'Deposit To'. Then, go to New > Bank deposit and select the payment. Under 'Add funds to this deposit', select Venmo under 'Received From' (set them up as a vendor if you haven't), select your Merchant Fees expense account under 'Account' (set that up if you haven't) and enter the fee as a negative amount (-$5.00). Click save. The deposit amount will be net of fees and you have the merchant fees recorded as an expense.

L

lumberjackhoops-Author

Thank you @Rainflurry , this is super helpful!

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