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jmaurer1
October 30, 2023
Question

Revised: What is the correct way to record service fees on an ACH payment received from a client

  • October 30, 2023
  • 1 reply
  • 0 views

Hi all, I posed this question last week, but I neglected to include that our company does not participate in online banking, and we have just upgraded our product to QB Pro Plus 2024.  We had invoiced a client $1000.00 for services rendered, but with the ACH payment terms, we received only $985.00.     The $15 difference is not a bank service fee from our bank, so I am inquiring how to accurately record this payment.   We do not use online banking, so unfortunately the Banking menu is not linked to deposits, and I can only use the Customer Payments tab by selecting the Receive Payments icon.   Is it possible to record 2 separate transactions on the Customer Payments tab, one for $1000 and one for - $15 ?    What do you call this type of fee since is not a bank fee generated from our bank?   Please let me know if there is a standard methodology for recording this type of transaction. 

 

Thank you in advance for your advice!

Janette

 

1 reply

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QueenC
October 30, 2023

Thanks for clarifying your scenario, jmaurer1.
 

I was able to look at your previous post and have read it carefully. Thus, I can say that the process provided by my colleague about recording the service fee taken from the invoice you've received from your customer is still applicable. This process allows you to deduct the fee ($15) from the original amount ($1000). You can follow the step-by-step process provided by my colleague from your original post.
 

I'm also adding this reference that you may find helpful in collecting fast and secure payments from your customer based on agreed-upon terms: Create a recurring credit card payment. This process will help you save some of your time on payment collection.

Please don't hesitate to ask any questions along the way. I'm committed to making sure you feel confident and empowered in managing and recording invoice payments including service fees in QuickBooks Desktop. Have a great rest of your day.

J
jmaurer1Author
October 30, 2023

Hello QueenC,  

Thank you for such a quick response.  Step 1 was fine, but I am not having luck with step 2 of the suggested solution.   When I go to the Banking Menu>MakeDeposits>Payments, I am receiving a message that there are no payments to deposit, even though I successfully recorded the payment in Step 1.   There is no monetary amount to select from in any of these fields.    I input the account name in the Received From field, but it did not pull up the information from the account, and  I also tried to print my screen so that you may be able to see how I am doing this, but I received another message that I must assign an account in order to print the deposit summary.     Since we are not linked to online banking, and we only receive payments using Step 1, and only the Customer Payment tab,  is there another way around this?  

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ReymondO
October 30, 2023

Good day, @jmaurer1. Thanks for getting back to the thread and following the suggestions posted on the other thread. 

 

Let me join in this conversation and provide you with further help in recording the service fee. 

 

To start with, can you share with me the exact error message you're getting when going to the Bank deposit window? You can also add a screenshot so we can have a better view of the error and give you the right steps in addressing the issue. Any additional info would be much appreciated.

 

To ensure you're able to see the payment in the Bank deposit window, let's make sure that you've selected the Undeposited Funds account when receiving the payment. Thus, I'd suggest opening the invoice payment again and ensuring that you've selected this account in the Deposit to section.

 

 

When you're done, go back to the Make Deposits window and select the payment. Then, select an expense account on the second line item, for example, Bank Service Charges and save the transaction. 

 

 

After this, you can now reconcile your accounts so they match your bank and credit card statements.

 

If you need more help in recording service fees in the program, please let me know by adding a comment below. Have a pleasant day ahead.

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