Results 1 to 7 of 7
  1. #1
    Join Date
    Feb 2003
    Location
    AR
    Posts
    2,381

    How to record merchant account fees in quickbooks

    OK, I've just purchased quickbooks to keep me better organized, and I've figured out a lot of it.

    My one problem, however, is the invoicing/recording payments feature.

    Ex: If I invoice a client for $500 and they pay me via paypal, a chunk of that is taken away by paypal fees. If I record that I received $500 in quickbooks, then it will show my bank account balance incorrectly.

    I want to be able to see how much of my income is going to merchant fees.

    My only idea on how to accomplish this would be to create a new expense account called Merchant Fees. Record the customer's payment, and then pay X dollars into the expense account, thereby taking it from my bank account. This would work, and will allow me to see exactly where my money is going, but I was just curious if there was an easier way...

    Kevin

  2. #2
    Join Date
    Jul 2003
    Location
    Goleta, CA
    Posts
    5,550
    You would have an expense account merchant fees as a sub account of selling and general administrative expenses and perform the debits and credits as you stated.

    Credit banking for the fees, debit SG and A for the fees.

    (Double entry system of accounting)
    Patron: I'd like my free lunch please.
    Cafe Manager: Free lunch? Did you read the fine print stating it was an April Fool's joke.
    Patron: I read the same way I listen, I ignore the parts I don't agree with. I'm suing you for false advertising.
    Cafe Owner: Is our lawyer still working pro bono?

  3. #3
    cywkevin is correct. you can pretty much name the account whatever you want. "merchant fees", "service fees", or if you want really simple lump it in with "interest and service charges"

  4. #4
    Join Date
    Oct 2004
    Posts
    2,825
    I classify it under "Bank Service Charges"

    BTW--I don't know how you're doing this, but the Daily Journal method works best for me when doing this.

    It takes awhile to figure out how to balance it properly but once you do, you'll never have to learn it again.

  5. #5
    Join Date
    Feb 2003
    Location
    AR
    Posts
    2,381
    I also set mine up under bank service charges.

    I'm slowly learning my way around quickbooks. I took quicken training in my accounting classes, but quickbooks seems to be a whole new beast...

    Thanks for your help guys.

  6. #6
    I would recommend not putting it directly under bank service charges but under its own unique account (such as merchant expenses). Having a detailed record of your expenses is important whether you are doing your taxes, selling your company, or simply looking for places that you can add to your cash flow (merchant expenses are a great place to add to cash flow).
    Now is the perfect time to sell your hosting company. Contact us for a consultation.

  7. #7
    Join Date
    Feb 2003
    Location
    AR
    Posts
    2,381
    It is in an account called Merchant Fees, which is a subaccount of bank expenses.

  8. Newsletters

    Subscribe Now & Get The WHT Quick Start Guide!

Related Posts from theWHIR.com

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •