QuickBooks Record Merchant Service Deposits & Fees Error
Once you have completed the setup and activation of your QuickBooks Payments account, you will be able to record merchant deposits and fees as well as track merchant transactions in QuickBooks Desktop 2022.
QuickBooks Record Merchant Service Deposits And Fees Error in Desktop
Don’t worry if you are unfamiliar with the procedure because here, we will discuss the process of recording merchant service deposits and methods to fix the fees error in QuickBooks Desktop.
Access Merchant Service Deposits Screen
Visit the Banking menu and then select Record Merchant Service Deposit to open the Merchant Service Deposit window.
The following tabs are available on the screen:
- Add Online Payments: This tab displays payments that couldn’t match an existing invoice in QuickBooks. If you want your bank account to record these payments, you must manually enter them.
- To match an existing payment, select Add Payment from the Action section, or select several payments and then Add Selected Payments.
- Once you add a payment, create an invoice by selecting Need Invoice? Once you create an invoice, you must apply payments to the invoice. To do so, go to the Customers menu and then click Receive Payments.
- Ready To Record: Once you have matched and recorded all of the transactions in a batch, the batch will appear on the Ready To Record tab. If you cannot find all the transactions recorded in a batch, you won’t be able to record the batch and will receive a message stating Transaction Not Added.
- Recorded: This tab displays successfully recorded transactions. And you can manage and monitor those transactions.
- Errors: This tab displays manually entered transactions into QuickBooks. If one or more transactions in a batch are in this tab, the batch will not be recorded. This ensures that the amount in QuickBooks corresponds to the amount on your bank statement.
Configure Deposit And Fees Account Settings In QuickBooks Desktop
Before downloading your deposits and fees, you must first choose an account to which you want the transactions to be downloaded and an expenditure account to which you want the fees to be assigned.
This is usually the same bank account you added in QuickBooks, and it shows the correct account where your funds are deposited and where the fees are withdrawn.
To change the deposit settings, follow these steps:
- Go to Banking from the main menu of QuickBooks and then go to Record Merchant Service Deposits
- Select Choose Change your deposit settings from the lower-left panel of the window.
- After that, from the Merchant Service Deposit window, make the following changes to your information:
- Allow New Invoice Creation After Applying For A Payment: Marking this checkbox allows you to create an invoice if no invoices have been created for a certain transaction and customer.
- Your Bank for Deposits: Using this drop-down box, you may select the financial institution where you want to deposit your funds.
- Memo: You can add a default memo to your merchant service transactions using this field.
- Your Fees Account: From the drop-down menu, choose the account type you want to apply your fees. Consult your accountant if you are doubtful about which account you should use.
- Your Bank for Fees Withdrawal: You can select the banking institution you want to withdraw fees from using this drop-down menu.
- Display Welcome Screen: If you check this box, the Welcome screen will appear whenever you launch Merchant Service Deposits.
- After that, select Save Settings
Manually Record Deposits And Fees
- Open QuickBooks and select Make Deposit from the Banking menu
- Select elements that must be reconciled.
- Click Make Deposits to deposit these things into your bank account and finish the reconciliation process.
To enter the missing fee, you must also enter the appropriate bill:
Create the bill –
- Open QuickBooks, go to Vendors, and then click on Enter Bills
- Click on Enter Bills window and select the vendor assigned to your Intuit merchant service account from the Vendor drop-down menu.
- Verify that the date is the same as the fee payment date.
- Verify that the Account field has the correct expense account.
- Then, enter the fee amount in the Amount Due field.
- In the Account section, select the appropriate Expense account.
- After that, Save and close the window.
Pay The Bill
- Select Enter Bills from the Vendors menu
- Then tick the checkbox next to the bill you made
- Next, click on Pay Selected Bills and then press Done in the Payment Summary window that appears.
Error: You must have a valid expense account to make a deposit
This error can occur due to insufficient or improper user rights in QuickBooks. Ensure that all online payments are downloaded using Record Merchant Service Deposits. When you select Get Online Payments, QuickBooks attempts to open this window.
You can fix this problem by login into QuickBooks as an administrator and granting the following rights to users:
- Chart of Accounts
- View Account Balance
Hopefully, you are now able to record merchant service deposits in QuickBooks Desktop by following the above-mentioned steps. However, if you encounter any problems during troubleshooting the fees error or while recording merchant service deposits, contact the QuickBooks error support team.