Credit Cards

I setup an expense account named Merchant Discount Expense. Doing it one transaction at a time is a real pain. After a few months of doing it this way, I asked them to deposit the full amount and bill me once a month. It is still an expense to the same account but a lot easier to track.

Bob

Reply to
RobertM
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I realize this is a basic question to which I should know the answer, but I don't. Accepting credit cards without using QB merchant services. When I accept payment for an invoice I show the full payment of the amount due. But when I receive the funds from the merchant services account they send me the amount less a percentage for their charges. This goes into my account by direct deposit. What is the correct way to account for the difference in QB?

Reply to
Ed Adams

An alternative method is to "receive payment" for the full amount of the invoice. Have the payment go to the Undeposited Funds account. Now use the "Make Deposit" screen to deposit the invoices by customer. Add another line to the deposit with no customer name with the Merchant Fee expense account in the "From account" column. Enter a negative number representing the total fees withheld by the CC company. The total deposit will now match the amount of the net check received in your bank.

Next, call up your merchant service company and have them switch you to deduct their fees at the end of the month. They may charge a slightly higher % fee but the time saved in entering the invoices will be greater than the extra fees.

Reply to
Laura

Reply to
Ed Adams

Reply to
Ed Adams

If you are seeing credits to the expense account then you are recording the fees incorrectly. This is an expense to the business and not a credit. The negative to the Make Deposit screen for the fees charged is supposed to create a debit on the expense account. You don't owe that to anyone so there is nothing to "pay". Its a cost of doing cc business. It will reset itself to zero on 1/1/08 like the rest of your P&L accounts.

Reply to
Laura

Reply to
Ed Adams

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