Question

Credit Card companies charge a fee when processing a transaction. How is this fee entered in Quickbooks?

Answer 1

In Quickbooks, credit card transaction fees are recorded as an expense under the 'Banking' or 'Expenses' section, categorized accordingly, and saved in the ledger.

Step-by-step explanation:

When a credit card company charges a fee for processing a transaction in Quickbooks, the fee is recorded as an expense. To enter this fee, you would typically go to the Banking or Expenses section of Quickbooks. Here's a step-by-step explanation:

1. Select the appropriate bank account where the transaction was made.
2. Enter a new transaction, choosing 'Expense' as the type.
3. In the 'Amount' field, input the fee charged by the credit card company.
4. Categorize the expense under a relevant account such as 'Bank Service Charges' or 'Merchant Processing Fees'.
5. Save the transaction to record the fee in your Quickbooks ledger.

This process helps you keep accurate financial records and track all of your business expenses, including transaction fees charged by credit card companies.