QuickBooks Asia

Capturing Surcharge from Credit Card

Software: QuickBooks

Some users who use QuickBooks in retail business, having difficulty in capturing the surcharge from the credit card company when customer made payment to you via credit card. To simplify the process, I use undeposited fund account in QuickBooks to resolve the surcharge issue.

I use the Sales Receipt to capture the sales and set the “deposited to” account to “Undeposited Funds” account. The double entry for this transaction will be debiting Undeposited Funds account and crediting Sales account. Undeposited Funds account is a system account, when you create a new company file, this account will be automatically created in your chart of account list.

Next, from the Banking menu, select Make Deposit. You will see the amount received from Sales Receipt shown in the Payments to Deposit window. Highlight the deposit and click the OK button to move your deposit into the Make Deposit window.

Ensure the Date and the Bank account in the Deposit To field is correct. Add the surcharge expenses account into the From Account field; and enter the surcharge amount (negative value). 

In my case, the original sales amount is $2,750.00, less out the surcharge of $55.00 and the actual deposited amount into the Bank is $2,695.00. The double entry for this transaction will be debiting Bank account $2,695.00, debiting Surcharge expense account $55.00 and crediting Undeposited Funds account $2,750.00. 

From the Profit & Loss report, you can see the Surcharge amount, $55.00, showed in the Expenses section and bank account will show just $2,695.00 instead of the original deposited amount of $2,750.00 collected in the Sales Receipt. So, it will be easier when doing Bank Reconciliation.

 

How am I going to capture those bits and pieces of claims into QuickBooks?

In my previous blog, I did mention that bosses usually had lots of bits and pieces of claims. How are you going to capture these claims into QuickBooks?

I preferred to create the Amount Due account as a Credit Card type of account. This method is easier because I don’t need to create any General Journal entry. Besides, to a layman, it will not be easy to understand the rule of double entry.

Below is an example to illustrate how to use a credit card account to capture the claims.

Create a credit card account

From your chart of accounts list, add a new Credit Card account for yourself. Example:

• Account type: Credit Card
• Account name: Amount due to EHLim