How to record credit card processing fee properly?
How do I account for a fee for accepting credit card from a customer to apply to their Invoice using QB 2008. Example: Inv for $99, $97 applied to bank account, how do I get the $2 into the expense?
Hello Angela!
Thank you for posting on our Community Forum.
It involves three steps process.
Let’s say for example, customer invoice is $100 and credit card fee is $3, and net bank deposit is $97.
- Customer Invoice = $100 (it creates a/r as debit and credit to income a/c)
- Receive Payment = $100 (it relieves balance from a/r, moves it to undeposited funds)
- Bank Deposit = $97* (it relieves balance from undeposited funds to bank account)
Important Split Entry Here:
| Received From | From Account | Amount |
| Line 1 Jane Smith | Undeposited Funds | $100 |
| Line 2 CC Fees* | Merchant Service Fees (expense acct) | -$3 (notice negative amt) |
Deposit Subtotal as well as Deposit Total should show $97
* optional: setup “cc fees” as other type
Hope this helped.
Cheers!
