Quickbooks Online – Handling Credit Card Fees
If you are using QBO (Quickbooks Online) you probably noticed that there is no clear way to invoice a client, and then receive payment from paypal or google checkout. Why? Because they both deposit the “net balanace” into your account instead of the full deposit and charging a fee afterwords. Because of this “net deposit” instead of “gross deposit” it makes dealing with your invoicing a bit of a pain. QBO refuses to answer my demand for a simpler way to handle these net deposits but thankfully after lots of trial and error, I found a way to get it done.
1. You should add the deposit for the exact deposit amount. In this example:
- the invoice was for $260
- the deposit was for $252.16
- The fee was the remaining $7.84
2. Add a “Banking -> More -> Journal Entry”. You will create 2 line items, 1 to apply a credit to the customers account, and 1 to account for the expense in your books. See the screenshot below that explains itself:
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3. Once you saved the above Journal Entry, and have the deposit in the system as well, you will want to go to the customer screen and “Receive Payment” on the outstanding invoice:
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4. Finally match up your relevant Credits with the Invoice to effectively pay the invoice using your deposit and journal entry:
Click to Zoom
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