Is there standard best practice in handling the entry of fees that are charged prior to receiving a deposit? For ex…AirBnB charges me 3% before depositing my payment. For example…I have a booking that I earned $100 for. AirBnB keeps $3 and deposits $97 into my bank account. What is the best practice around capturing the total revenue of $100 less the fee of $3? To date, I have manually adjusted each deposit and added a new transaction for the fee to make the net deposit correct. Is what I am doing right or wrong?

QB Issue Resolution:

Welcome to the Community forum, skagitsteelheadh. I’m glad to assist about recording processing fees.

 

Normally, these fees are track on the deposit. Once invoice is created, manually received the payment for the whole amount and deposit it to the Undeposited Funds account.

 

To received the payment, here’s how:

1. On the invoice, click the Receive Payment button.
2. Select the correct invoice on the Receive Payment screen.
3. In the Deposit to field, choose Undeposited Funds.
4. Click Save and close.

To enter a bank deposit for the fee, here’s what you’ll need to do,

1.  Click the Plus icon.
2.  Select Bank Deposits.
3.  Choose the customer payments in the Select Existing Payments section.
4.  Enter the processing fee as a negative amount in the Add other funds to this deposit section.
5.  Choose the expense account that you use to track these fees in the Account drop-down.
6.  Click Save.

This method helps to ensure that customer payments and processing fees are accurately recorded. For an overview of this process, I suggest visiting this article: Enter a bank service fee while using a third-party merchant service.

 

Should you need further assistance with recording transactions, please let me know by commenting below. I’m always around to help you.

Resolution for Issue 'Is there standard best practice in handling the entry of fees that are charged prior to receiving a deposit? For ex…AirBnB charges me 3% before depositing my payment. For example…I have a booking that I earned $100 for. AirBnB keeps $3 and deposits $97 into my bank account. What is the best practice around capturing the total revenue of $100 less the fee of $3? To date, I have manually adjusted each deposit and added a new transaction for the fee to make the net deposit correct. Is what I am doing right or wrong?' available: Yes (Solved).
Source: Intuit Community forum.

Is there standard best practice in handling the entry of fees that are charged prior to receiving a deposit? For ex…AirBnB charges me 3% before depositing my payment. For example…I have a booking that I earned $100 for. AirBnB keeps $3 and deposits $97 into my bank account. What is the best practice around capturing the total revenue of $100 less the fee of $3? To date, I have manually adjusted each deposit and added a new transaction for the fee to make the net deposit correct. Is what I am doing right or wrong?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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