QuickBooks: Recording Deposits with Fees
I recently worked with a client who receives customer payments via wire transfer. The troubleshooting I helped her with was identifying how to account for wire transfer fees deducted from the deposit. We were working with the online platform of QuickBooks (**reminder: The Desktop platform may look slightly different than the screen shots in this blog).
Let’s say our client Sue has invoiced customer A for $1,500. She has received the payment against the invoice (see my prior blog that touches on receiving payments). She updates her bank feed and notes that there is a bank deposit which references a wire transfer for customer A. The issue Sue has is that the bank deposit is only for $1,488.
Sue remembers that she incurs a $12 fee per wire transfer. Here, I will walk Sue through the steps of recording the deposit so that it reflects the fee. Refer to the Figure 1 below as you follow along with the steps.
Figure 1 - CLICK TO EXPAND
Make sure you have received payment against the invoice first and foremost.
Record a new deposit. Click on the “+” icon at the top right and then choose “Bank Deposit” under the Other column. Choose the applicable bank account and date.
Since you have already received payment against the invoice, you will see the $1500 for Customer A populate under the “Select Existing Payments” section. Place a checkmark on that line to include it in the deposit. You will see the deposit amount as $1,500 in the top right corner.
We will enter the wire transfer fee under the “Add New Deposits section.” You don’t have to enter anything under “Received From” or “Description” but I did in this example. I chose the Wire Transfer Fee account. If you need to set up an account for this, make sure you categorize it as an expense before saving.
When you enter the amount of the fee, be sure to make it a negative number. Typically, you’re entering deposits which would be positive amounts, so a reduction to a deposit – such as a fee – would not be positive. After completing this line, you will notice the deposit amount now show $1,488 in the top right corner.
From this point, you can continue with matching the bank deposit to your bank feed, if this is a function you utilize for reconciling. If you have other troubleshooting relating to deposits, please email me for one-on-one help, or comment below if you’d like it featured in a future blog.