Recording Credit Card Fees In Quickbooks

For companies that are integrated with QuickBooks Online, you may have to track Time To Pet Payments when matching transactions in your QuickBooks account (especially if you have your bank account connected to QuickBooks). When a client makes a payment through Time To Pet Payments, Time To Pet will sync the entire payment to your QuickBooks Online account. When the funds are deposited into your bank account, the fees will be removed prior to making the deposit. In order to properly match the transaction, you will need to create a Bank Deposit in QuickBooks and account for the fees. In this article, we'll review this process.

Recording Credit Card Fees for Time To Pet Payments

Reviewing Fees

First, you need to account for the processing fees included in the deposit into your bank account. Deposits are referred to as "Payouts" in Time To Pet Payments. Time To Pet shows you a complete breakdown of all payouts in the Invoicing > Payments > Payouts tab:

View of Payout tab with graph and sent payout details shown below

For each payout is listed, and you can view a full report of the payout and also download the report. To see a complete breakdown of an individual payout, including the payment date, the client name, the gross amount of the payment, the fees, and the net amount that is being deposited into your bank account, select the "Full Report" button:

report showing sent payouts with arrow pointing to a the

screenshot of payout report details

Creating A Deposit In QuickBooks

This is the information needed to create a Deposit in your QuickBooks account.

  1. You can create a Deposit in QuickBooks by clicking the "+" icon in the top left section of the QuickBooks dashboard:

quickbooks dashboard with arrow pointing to

  1. From the menu shown, select the "Bank Deposit" option:

Menu of options with arrow pointing an option for

  1. Next, make sure the bank account listed at the top left is the same bank account into which the money will be deposited. Also, set the date to match the date from the payout:

Bank deposit form where account and date fields are shown

  1. You can then select the payments that are listed in the Payout Report. The Amount in the top right should match the "Gross Payments" found in the Payout Report:

Bank deposit form with listed payments selected

  1. The bottom half of the screen is where you can account for the Time To Pet Payment fees. Add a new deposit with the "Received From" set to Time To Pet Payments. Set the "Account" to the account you track merchant service fees with. In the "Amount" column, set the amount to the total amount of the fees. This should be a negative number since the fees are being withheld from the Deposit.

Screenshot of section for adding funds to a deposit

Note: If recording credit card fees for the first time, you may need to create a new Vendor for Time To Pet Payments to apply to the "Received From" column. Additionally, you may need to create a new account titled "Merchant Account Fees" to use with the "Account" column.

  1. You can then review the data to ensure it matches up with the information from the Payout Report. Here is a snapshot of the total gross payments, fees, and payout amount from TTP:

screenshot of payout report details

  1. You can then complete the Deposit created in QuickBooks. After ensuring the information matches, you can "Save and Close":

Bank deposit form with listed payments selected and arrows pointing to totals

Matching Transactions

After saving the Deposit, you can match the deposit made into your bank account with the deposit just created. Navigate to the Transactions > Bank Transactions section of QuickBooks, find the transaction, and select "Match". You can also review the transaction to ensure it matches the bank deposit you created correctly. For more information on matching transactions in QuickBooks, review their help documentation.

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