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jmaurer1
October 25, 2023
Question

What is the correct way to record service fees on a payment from a client that are generated from their bank, not ours?

  • October 25, 2023
  • 1 reply
  • 0 views

Hi!  I am using QB Desktop Pro Plus 2022.    I imagine this is now a common occurrence as we advance into ACH payment methods for services rendered.   If a client was invoiced for $1,000.00 but we received only $985.00, do you still record the service fee of $15 as a bank service fee even though it is not a service fee from our bank?   When I go to the Receive Payments icon and enter payment details, there is no field to enter the $15.00 fee.  It may show up as discount and credits applied.  How do I process this payment and how do I reconcile this at month end?

 

Thank you, 

1 reply

C
CharleneMaeF
October 26, 2023

I'm here to help you to record the bank fee, jmaurer1.

 

Yes, it's important to track the service fee even if it is not charged by your bank. To do so, you can enter the fee as a negative amount on the Bank Deposit page when you make the payment deposit.

 

Beforehand, let's record the 1000 invoice payment you receive from your client. Here's how:

 

  1. From the QuickBooks Home page or the Customers menu, select Receive Payment.
  2. In the Received From drop-down, select the customer's name.
  3. Enter the Amount received.
  4. Add the correct date, then choose the Undeposited Funds account as the Payment method.
  5. Select the invoice or invoices you'd like to pay.
  6. Click Save & Close.

 

Once done, you can now deduct the fee from the payment. I'll show you how:

 

  1. Go to the Banking menu and select Make Deposits.
  2. In the Payments to Deposit window, select the $1000 payment, then select OK.
  3. From the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
  4. Add the fee on the second line as a negative amount.
  5. Select the correct account.
  6. Enter the other details needed, then click Save & Close.

 

Please note that when assigning fees, you can select an expense account. However, it would be best to consult with your accountant to ensure that the fee is tracked accurately.

 

Additionally, I've added these articles that'll help you review your transactions and ensure they match your bank statements:

 

 

We always have your back. Let us know if you have further questions about QuickBooks and managing invoices. 

A
assuroptum
February 19, 2024

I have the same situation but when I recorded the payment I recorded what was received (amount minus the wire charge from their end) which left a balance on the invoice. Now I have a number of invoices with a $5 balance. How do I "fix" it to have the invoice reflect a paid balance? I don't want QB to reflect the total amount of the invoice as income because the actual amount billed versus the amount received are different. (I E. Invoiced $900 but actually received only $895).

M
MichaelaS
February 19, 2024

Thank you for sharing your concern here in the Community, @assuroptum. Let me provide detailed information to tag your invoice as paid in QuickBooks Desktop (QBDT).

 

In this situation, your invoice shows an outstanding amount of $5. You have options to either label the invoice as paid by using the credit memo or apply it as a discount or credit. I've covered some steps below to guide you through this process.

 

1.  Go to the Customers tab and click on Create credit memo/refund.

2.  Make sure that it has the correct customer or customer job applied.

3. Select an item, then enter the balance amount.

4.  Click Save and Close, then choose Apply to an Invoice.

5.  Select which invoice you are going to apply for credit by checking the box on the left side of the date column.

6.  Confirm the transaction by clicking Done.

 

An alternative way is to use the Receive Payments option. Here's how:

 

  1. On the dashboard, click on the Receive Payments icon.
  2. In the Customer Payment window, select the Discount & Credits button.
  3. Click on the Discount tab, under the amount of discount, and type in the balance amount.
  4. After hitting Done, select Save and Close.

 

Apart from this, verify if the invoice is marked as paid. You may refer to this article for additional details: Record an Invoice payment.

 

Furthermore, let me share this article to learn how to set up and use progress invoicing in QuickBooks Desktop: Set up and send progress invoices

 

Keep me posted if you have further questions about your invoices. I’ll be around to back you up. Have a good day ahead.

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