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How to Add Credit Card Fee to Invoice in Quickbooks Online
Quickbooks Online is a popular accounting software that allows businesses to manage their finances efficiently. One important aspect of invoicing is including any additional fees, such as credit card processing fees, that may be incurred during transactions. In this article, we will guide you on how to add a credit card fee to an invoice in Quickbooks Online, ensuring that your records are accurate and up to date.
Step 1: Set up a Credit Card Fee Expense Account
Before you can add a credit card fee to an invoice, you need to create an expense account to track these fees. To do this, follow these steps:
1. Log in to your Quickbooks Online account and go to the “Chart of Accounts” under the “Accounting” menu.
2. Click on the “New” button to create a new account.
3. Choose the “Expense” account type and click on “Continue.”
4. Enter a name for the account, such as “Credit Card Fees,” and provide any additional information if required.
5. Click on “Save and Close” to create the new expense account.
Step 2: Create a Service Item for Credit Card Fees
Next, you need to create a service item in Quickbooks Online to represent the credit card fee. This will allow you to easily add the fee to an invoice. Here’s how:
1. Go to the “Products and Services” section under the “Sales” menu.
2. Click on the “New” button to create a new service item.
3. Choose the “Service” item type, give it a name, such as “Credit Card Fee,” and provide a description if desired.
4. Under the “Sales price/rate” field, enter the fee amount that you typically charge for credit card transactions.
5. In the “Income account” dropdown, select the credit card fee expense account that you created in Step 1.
6. Click on “Save and Close” to create the service item.
Step 3: Add the Credit Card Fee to an Invoice
Now that you have set up the necessary accounts and service item, you can add the credit card fee to an invoice in Quickbooks Online. Follow these steps:
1. Create a new invoice or open an existing one.
2. Enter the customer’s details, select the products or services being invoiced, and provide any additional information as required.
3. Click on the “Add” button in the “Product/Service” column to add the credit card fee service item.
4. Select the credit card fee service item from the dropdown menu and enter the quantity as “1.”
5. Quickbooks Online will automatically calculate the fee amount based on the rate you specified in the service item setup.
6. Review the invoice to ensure all the details are correct, and click on “Save and Close” to save the invoice.
FAQs:
Q: Can I customize the credit card fee rate for different customers?
A: Yes, you can customize the credit card fee rate for different customers by creating multiple service items with different rates. When adding the credit card fee to an invoice, simply choose the appropriate service item for the customer.
Q: How do I track credit card fees in my reports?
A: Quickbooks Online will automatically track the credit card fees in your reports since you have assigned them to the credit card fee expense account. You can run a report on this account to view all the fees incurred during a specific period.
Q: Can I add the credit card fee as a percentage of the invoice total instead of a fixed amount?
A: Unfortunately, Quickbooks Online does not have a built-in feature to calculate credit card fees as a percentage of the invoice total. You will need to manually calculate the fee amount based on the percentage and add it as a separate line item on the invoice.
Q: Can I automatically add the credit card fee to all my invoices?
A: Quickbooks Online does not have a native feature to automatically add the credit card fee to all invoices. However, you can create a recurring invoice template that includes the credit card fee service item, making it easier to add the fee to invoices.
In conclusion, adding a credit card fee to an invoice in Quickbooks Online is a straightforward process. By following the steps outlined in this article, you can accurately track and record credit card fees, ensuring your financial records are up to date. Additionally, the FAQs section provides answers to common questions that may arise during the process, helping you troubleshoot any issues you may encounter.
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