How can I show fees associated with an ACH (automated clearing house) deposit in QuickBooks®?
I am doing very basic bookkeeping for a friend. She has been selling on line gift certificates for a %fee.
The sales minus fee are deposited directly to her checking.
How can I show the fees as a business expense for last year and in the future is there a better way to enter these transactions?
She uses QuickBooks®. Thanks, Kathy
If I were recording this direct deposit entry in QuickBooks®, I would follow these steps:
If this was a recurring transaction (and it sounds like it is), I would use the QuickBooks® memorized transaction feature. Memorizing the invoice makes the whole process more efficient and helps ensure there is consistency in booking the transaction each time. I would select the "reminder" feature (instead of "record automatically") so I could adjust the amounts to each new direct deposit amount.
Follow this link here to learn why my preference is to use Undeposited Funds as part of my internal controls.
If site visitors using QuickBooks® have others ways to book this type of direct deposit transaction, I would love it if they would share their method. :0)
January 2013 Note to Readers: When dealing with a PayPal account, I don't record PayPal's transaction fee with each receipt/purchase. I download the Monthly Financial Statement and enter the fees paid during the month in the banking charge section of the bank reconciliation window. The Monthly Financial Statement is where I also obtain the opening and closing balances by currency.
QuickBooks® is a registered trademark of Intuit, Inc.
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