I have an invoice that I billed out for $851.58. Customer paid by credit card. I received $822.48. $29.10 is the fee. How do I record the fee?

Hello bonnie24,

Great question! I know it's essential that you have both the invoice and the processing fee notated in your books, so I'll help you out with this.

Depending on what payment processor you're using, the service may create the expense for you automatically. For instance, with QuickBooks Online Payments, the program will create the transaction payment and the associated fee for you. One way to check for these expenses is to check your account register. The program likely created a QuickBooks Payments Fees account for you, but you can double-check where your fees are mapping through by going to the Gear icon, choosing Account and Settings, and reviewing the Payments tab. Once you know what account to look for, follow these steps.

1. Select Accounting from the left menu.
2. Find or search for the account in question on the Chart of Accounts tab.
3. Select Run report to see all associated transactions.

If you're not seeing the expense transactions you're looking for there, you can create the expense manually through the +New icon and Expense transaction type. Learn more about that here: Enter, edit, or delete expenses in QuickBooks Online

In the event that you're using a third-party provider that doesn't create the expense transactions for you, here's how to record this. Simply record the payment in full on the invoice, then create an expense transaction for the fee. I know that the payment provider took the fee from the amount you're receiving, but in QuickBooks Online, the two need to be recorded as separate transactions.

I hope that helps! I'm here if you have further questions.

I use a third party for credit cards and this is how I handle the fees:

• Record a payment to the customer invoice for the amount of the fees ($29.10) and use your deposit clearing account for the "deposit to" account (I like to mark the "reference number" field with "CC PAYMENT FEE" so it stands out in their transaction listing)
• Record a payment to the customer invoice for the amount that you receive from the credit company ($822.48) and use your usual bank account for the "deposit to" account
• Do a journal entry to clear the deposit clearing account and record the credit card fees expense ( Debit the expense and credit the deposit clearing account).  Mark the customer (and even the job if you use them) in the "Name" field and use Zero rated for the HST.

By doing it this way, you can see in the customer's file that they like to pay by credit card and you can even track the expense to the job if you use job costing!