Payment Processing Fees - The Wrong Way

When I Posted QuickBooks Tip – How To Record Payment Processing Fees, I may have suggested that there was a right way and a wrong way. I do have an opinion as to form. In other words there are different ways to present the information, and some ways are better than others, but that doesn’t mean any of them are wrong.

I prefer to present the total sale on the sales form, and then deduct the fees.

The other way is to use an item on the sales form that links to the credit card processing fees. I don’t love this presentation, because, as you’ll see in the video answer, it reduces the total of the sales form. One solution is to use a sub-total item, so that at least somewhere on that form, you get the total sale, before the credit card processing fees.

MIN is asking if there is a way to track the credit card processing fees back to the item from the sale using my preferred method. (S)He also indicates that (s)he doesn’t want to do it “the wrong way.”

Both ways are correct. In either case you get the right gross sales, and credit card processing fees on the income statement. So it’s not a question of right or wrong. It’s just a question of form.

In a case like MIN’s where recording the credit card processing fees on the original sales form allows for tracking that is even useful, let alone needed, then I absolutely encourage you to use that method.

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