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Handling bank charges that are automatically deducted from a received payment
I invoice a client for $100 worth of services. The client sends me a payment via wire transfer. Unfortunately, the bank deducts a $10 service charge for receiving the wire transfer, and the payment appears on my bank statement as a $90 line (this is a single line on the statement, there are not separate lines for the payment and service charges).
I upload the statement and apply the $90 payment to the $100 invoice in FreeAgent, which then reports that $10 is still owing. Basically, I need to show that the $10 went towards the expense of bank charge. How do I reconcile this?
I upload the statement and apply the $90 payment to the $100 invoice in FreeAgent, which then reports that $10 is still owing. Basically, I need to show that the $10 went towards the expense of bank charge. How do I reconcile this?
I’m confused
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Inappropriate?Hey Bryan
When you explain the $90 transaction as an Invoice Receipt, you should change the explanation amount from $90 to $100:
This will mark the invoice as fully paid and leave a $-10 unexplained transaction in your banking list:
You can then click to explain this $-10 transaction as Payment > Bank/Finance Charges:
This will leave the transaction fully explained and your invoice fully paid.
Phew!
I’m happy
The company and 2 other people say
this answers the question
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