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Wednesday, June 22, 2005

Recording Merchant Fees.


How do I account for merchant card fees if my processor deposits sales into my bank account after discount fees?

If I receive a $400 payment for services from a customer and deposit $400 in QB's but my bank received $392, it doesn't reconcile. I use to have the whole amount deposited from my previuos merchant provider and would just write a check for merchant expenses they billed each month.



You can do one of two things.

1. You can make a journal entry either after every deposit or once a month, to record the merchant fees. (You would DEBIT - Bank Fee and CREDIT - Bank Account)

2. You can create a check with "Draft" where you normally have a check number for the amount of the merchant fees. Again, you could do this after each deposit or monthly.

It would probably be easiest to do it monthly when you get your merchant statement.

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