With D-Tools Payments and QuickBooks Online integration enabled, you can further simplify your accounting by activating the "Transaction Fee" automation. The Transaction Fee automation will automatically:
Mark invoices as "Received" once the payments are deposited into your bank account.
Add the total transaction fees debited from the total payments per client as journal entries in QBO.
With Cloud specifying the transaction fees based on the payment method and processor, you don't have to spend time and effort separating transaction fees from payments in QBO.
The Transaction Fee automation is available only with QBO but will be available for QuickBooks Desktop and Xero in future releases.
Here is an example of how the Transaction Fee automation works.
If you have received 2 $100 Visa payments and 1 $100 ACH payment to your bank account from a customer on, say, 10/14/24, a total of $7.50 will be recorded as the transaction fees for the day based on the current transaction fee rates. Additionally, all three invoices will be marked as received and reconciled with the corresponding transaction fees.
To use the Transaction Fee automation successfully:
For a project or service contract, ensure you have the customer account with the exact name in QBO. Otherwise, the Project Invoice automation and/or the Service Contract Invoice automation will fail to create invoices, affecting the creation of accurate journal entries for the transaction fee.
When manually creating invoices, ensure that the "Create invoice with QuickBooks Online" check box is selected. It is selected by default.
To enable the Transaction Fee automation:
1/ Go to "Settings > Integration > Manage Integrations" in the left navigation menu and open the QBO Settings modal.
2/ In the modal, go to the “Invoice” tab and enable the automation in the "Transaction Fee automation" tile.
3/ Specify your accounts receivable, expense, and payment deposit accounts correctly.
4/ Specify the classes for the accounts receivable and expense accounts if you are using the Classes feature in QBO.
5/ Map to an expense assignee if needed.
If you see that this automation is failing or giving incorrect transaction fee totals, it could be caused by the Project Invoice or Service Contract Invoice automation failing for one or more projects or contracts.
You should identify them and manually push their invoices to QBO.
Check out this article for more details.