If the bank transaction is vat for bank services, how to record it?

Glad you've reached out to this forum, Hazem. I'll share insights and steps to help you record bank charges on your account.

When recording these banking fees for the bank services charged to your account, you'll first need to create an expense account for the bank charges and resolve the difference when matching the transactions from your banking feeds. To do that, here's how you can create an expense account:

1. Go to Bookkeeping and select Chart of accounts.
2. Select New.
3. In the Account pop-up, select Expense from the Account Type dropdown.
4. Select Bank charges from the Detail Type dropdown.
5. Enter Name as Bank fees.
6. Select Save and Close.

Then, you can resolve the difference between the invoice and the payment when matching the transactions from your bank feeds. You'll have to select the account used to track the bank fees added.

Here's how:

1. Go to Bookkeeping, and select Transactions. Then click Bank Transactions. Select the bank account with the transaction.
2. Find and select the relevant transaction on the For Review tab.
3. Select Find match.
4. In the Match transactions window, select the appropriate transaction.
5. Select Resolve to open Add resolving transactions.
6. From the Category dropdown, select the Bank fees expense account you created.
7. Enter the Amount of the bank fee.
8. Select the applicable GST.
9. Select Save.

Once recorded, you can categorise and match the transactions recorded and reconcile your account to ensure the accuracy of your financial data.

Feel free to reach out back to us if you have additional questions or other QuickBooks concerns. We'll gladly provide the assistance you need. Have a good one!