Fees for taking credit card payments with InvoiceASAP Payments are expenses to your business, but they are also recorded in QuickBooks as income.
Assume you have an invoice for $100.00 and you charge your customers service fees when they pay with a credit card.
When your customer pays this invoice, a fee of $3.15, for a total invoice amount of $103.15.
The Service Fee of $3.15 is added to the invoice as a line item.
Your customer pays you $103.15.
When you sync from InvoiceASAP to QuickBooks, we sync the full invoice amount of $103.15 and the payment amount of $103.15.
But only $100 will be deposited into your bank account -- the amount of the invoice less the service fee.
By default, payments are synced to Undeposited Funds.
When you record the deposit, you will add a new line item to the deposit with a negative amount for the service fee.
In this example, your deposit amount will be $103.15.
But you will add a new item on the deposit form for -3.09, and apply this to the expense account you want to use for credit card fee.
Then the total amount of the deposit will be $100, which matches what was deposited into your bank account.
Here is a link to a video on YouTube that shows how to do this.
InvoiceASAP has no affiliation with this YouTube account.
We are including this in the article because it quickly, clearly & concisely shows how to apply credit card fees in QuickBooks Online:
> QuickBooks Tip: How to Record Fees from Credit Cards
If you are not familiar with Undeposited Funds in QuickBooks, here is a support article from Intuit that may help:
> How Undeposited Funds Works