![]() ![]() In this case you would enter all the sales receipts and payments on invoices received through PayPal or the merchant processor at the gross amounts. So here’s an idea – batch record your deposits and the related fees. Option 2 – Create batch transactions.Īdding a line to the deposit of each sales receipt for the merchant fee can turn into a lot of work. If you uncheck this option, you will get a “Deposit To” drop down box on Sales Receipt or Receive Payment entry forms similar to QuickBooks Online. There you can check or uncheck the option to “Use Undeposited Funds as a default deposit to account.” We usually suggest leaving the option checked so each time you save a sales receipt or payment, the amount is automatically saved to Undeposited Funds. Click on Payments and select the Company Preferences tab. Click on the Edit drop down menu, then Preferences. In QuickBooks Desktop, you have an option for how Undeposited Funds works with these forms. In QuickBooks Online, Undeposited Funds is found on the Sales Receipt or Receive Payment entry forms under the “Deposit to” drop down box. Undeposited Funds Options in QuickBooks Desktop and Online Now the correct deposit amount will be recorded to the bank account the donor gets full credit for the amount of the donation and you have captured the merchant fee expense. Again your deposit total should equal $99. Select the bank fees expense account in the “From Account” column and enter the $1.00 fee as a negative number under Amount. In QuickBooks Desktop, simply add a line in the deposit window beneath the sales receipt being deposited. ![]() ![]() Optionally you can note “merchant fees” or something similar for the Description.) The net deposit will now total $99. (Don’t worry about the Received From column. Then enter the $1.00 fee as a negative number. In QuickBooks Online, under “Add funds to this deposit,” enter your bank or merchant fees expense account in the first line under the Account column. In the example above, create a sales receipt for the $100 donation and save it to the Undeposited Funds account. If you are relying on QuickBooks as your donor database, you probably want to create a sales receipt for each donation so you can capture the name of the donor and run reports on donors. Option 1 – Create individual transactions. Your instinct is right! But what’s the best way to do that? Your instinct tells you that you should be giving the donor credit for the full $100. Here is an example: A donation of $100 is deposited into your organization’s bank account for $99.00 after the $1.00 fee kept by the merchant processor. Since we are in the midst of covering income accounts on our Chart of Accounts Grand Tour, now seems like a great time to cover this topic. Recently we received a question about how to handle deposits that come into the bank account net of fees. ![]()
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