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MUMC Finance
September 19, 2023
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Processing fees issue

  • September 19, 2023
  • 1 reply
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I have not been documenting the gross amount from donors in QBO for Non-Profits. We (the church) receive a net amount once processing fees have been deducted. Therefore, my monthly/year end reports erroneously reflect net not gross donations. In my attempt to fix this issue for past and future donations, I did the following based on my search of previous posts:

 

  1. Created a sales receipt for the full donation amount, deposited to Undeposited Funds, used product/service “tithes/offering” (an income account I had been previously using).
  2. Created a bank deposit selecting the payments included (full donation amount), added funds to this deposit to on-line fees (expense account) as a negative amount.
  3. I did not put the donors name in the “received from” box under “add funds…”

 

I now have a “Revenue by Donor” report that shows the Undeposited amount PLUS an entry for the net amount which I had previously reconciled (remember I am trying to clean up my errors). It now shows the donor has contributed more than they actually have. Note I have been using the “tithes/offering” income account when reconciling the net amount received from the bank. Thus, the reason for the almost doubling of the tithes/offering income account (sans fees).

 

In step #3 above I also tried adding the donors name in “received from”. When I did that, the fees are reflected on the Revenue by Donor Report as a deduction to the donors total but the report still is reflecting both the gross amount and net amount. I guess this would work if I hadn’t received the net funds from the bank.

 

I want to be able to provide a report to our donors that reflect their full donation AND also accurately capture the net amounts received. In order to do that, I need to fix previous transactions and ensure I am accurately tracking future transactions.

 

 

Best answer by MUMC Finance

Welcome back, @MUMC Finance.

 

I've read through your posts, and creating a bank deposit once bulk transactions come in isn't necessary. You have to add them from the Banking Feeds instead of entering a bank deposit. This will help you avoid duplicate transactions.

 

On the other hand, I'd love to help you with your concern about the duplicate entries. Can you please send a screenshot of how you record the deposit? When creating the deposit, did you check the sales receipt and at the same time add the bulk deposit from the Add funds to this deposit? Any additional information could help us provide the best resolution.

 

Please know that the Community forum is always open to help you if you have follow-up questions about this. Have a good one!


Thanks for all the various inputs. I resolved the issue doing the following:

 

  1. Opened the bank register and selected each reconciled transaction that included a deposit that had a processing fee. I used an external report that showed the processing fee transactions.
  2. I de-selected reconcile (changed to blank) from the register entry and saved entry.
  3. I created sales receipts for individual donors and for donors included in a bulk deposit and deposited to Undeposited Funds for each affected register entry.
  4. I then edited the entry in the register, to include processing fees to the bank fee income account in the bank deposit form.
  5. I then selected "R" in the register, to reoncile the edited entry and saved entry.

 

After trial and error with all of the recommendations, this appeared to be more efficient. Working from the register was more expedient because the register was always open when I created sales receipts and I was able to go directly to the bank deposit form from the register. It resolved the issue I was having with duplicate entries reflecting gross and net amounts on reports. This took quite some time since I had several months of data to correct. 

1 reply

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Irene R
September 19, 2023

Hello, MUMC Finance.

I'll lay down a process to help us correct the situation about the processing fees.

You’re in the right track in creating the sales receipts for the gross sales and bank deposits that include the processing fees.

First, we’ll have to undo the reconciliation of the affected period. We can do it one at a time or invite your accountant to do it at once.

You can use this link to undo the reconciliation manually: Undo or remove transactions from reconciliations in QuickBooks Online.

After that, we can undo the added bank transactions (with the net amounts) to get rid of the duplicates. You can do it under the Categorized tab on the Banking page. Here’s the link for the detailed steps: Unmatch downloaded bank transactions or move them to another account.

These bank transactions will go back to the For Review tab. Next, we are ready to match them to the bank deposits you’ve created manually. You can use the Find Match option if needed. Here’s the article that you can use as your guide: Categorize online bank transactions in QuickBooks Online.

Once we have settled the transactions, we are now ready to reconcile the account again. Your accountant can also help us to get this situation fixed faster.

If you need to run a report of your cash flows, I'll add this article if you need help: How to run a Statement of Cash Flows.

Feel free to get back to us if you have additional questions of the process so we can guide you further.

M
MUMC FinanceAuthor
September 20, 2023

I followed the additional steps but various reports still reflect both the Undeposited Funds (gross amount, sales receipt) and the Checking Account funds (net amount). This is reflected in Revenue By Donor, Statement of Activity, and Statement of Cash Flow reports (I only checked these). I also had an issue where a "bulk" deposit came in that contained multiple donors that had varying processing fees. The sales receipt I created was for an individual (one individual included in the bulk deposit). When I created a bank deposit, a new entry was created in the bank register for the individual, so I deleted the new register entries and the bank deposit. When I go the bank deposit it shows it is linked to the "bulk" deposit and it lists all of the sales receipts for the individual under "Received From" and all of the individuals in the bulk deposit under "Add funds to this deposit". When I tried to make adjustments, it said the balance would be off.

I still need a report for donors with gross only and a report for the church that reflects only the net. Also, instructions were for reconciled transactions. What do I do for unreconciled/For Review? Should I always create a bank deposit, even in cases when bulk transactions come in?

C
ChristineJoieR
September 21, 2023

Let help you resolve this, @MUMC12. This financial report allows you to quickly see what grant funds have been received and how the funds were spent. If your nonprofit would like to start using the Statement of Activity by Donor report to track granted funds, these instructions will get you headed down the right path.

 

To resolve duplicate entries in QuickBooks Online (QBO), you can follow these steps:

 

  1.  Review your donor list in QBO and identify any duplicate entries. Look for similar names, addresses, or contact information.
  2. Merge duplicate donors: Once you've identified the duplicates, merge them into a single donor entry. To do this, go to the Donors section in QBO and select the duplicate entries. Then, choose the option to merge them into one.
  3. After merging the duplicates, review and update the donor information as needed. Ensure that the merged entry contains accurate and up-to-date details.
  4. Once you've merged the duplicates and updated the information, you can delete the duplicate entries that are no longer needed. Be cautious when deleting entries and double-check that you're removing the correct duplicates.
  5. Going forward, it's important to maintain data integrity to prevent duplicate transactions. Regularly review and clean up your donor list, and encourage your team to enter new donors carefully to avoid creating duplicates.

 

Remember to back up your data before making any changes, and if you're unsure about any step, it's always a good idea to consult with an accounting professional or reach out to QuickBooks support for further assistance.

 

Furthermore, I'm adding this articles that can help you record your additional information: 

 

 

Let know if you have other concerns, I'll guide you more along through the process on recording donors.

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