Adding expenses to orders is not recommended because it will incorrectly record sales tax liability, therefore, you cannot use QuickBooks to track sales tax payable in some tax jurisdictions. Talk to your CPA prior to adding expenses to individual orders.
Turn on Fees
Here are the steps:
- On the Connex configure page, click Merchant Fees tab.
- Enter the fee item in QuickBooks, the percent, and the cents to add on top of the fees. In this example, we will add 2.9% of the order plus thirty cents:
How do I change the fee percent per payment method?
Two steps are required to change the fee percent, based on payment method.
1. At Merchant Fees on the configure page, add a default percent as a catch-all. For example, all orders except the ones with the rule will be 2.5%.
2. Add a rule to change the percent, here are the steps to add the rule:
- In Connex, select the Settings drop down menu and click Rules Engine.
2. Select the Action drop-down menu and click Add New Rule.
3. For each payment method, add a rule:
How can I use a different QuickBooks item name for different types of fees?
Out of the box, Connex will use a single item for fees. The Fee Item Name can be found in Merchant Fees on the Connex configure page. You can use a different item name for different fee types.
In this example, we will create a rule to use merchant fees for all fees except PayPal:
How do I remove fees from certain payment methods, like PayPal?
In the Merchant Fees tab, enter zero as the fee percent and fee cents. You must add a mapping for each payment method that includes the percent and fees to add. In this example, we will add 2.9% plus thirty cents for PayPal:
How do I change the merchant percent and fees, based on the country and store name?
In an advanced scenario, you can change the merchant fees and percent based on the country and store name. Login to Connex. Select the Settings drop-down menu and then select Rules Engine. Change this sheet and save it as a CSV. Upload the sheet.
How do I ensure the rules I entered for fees are correct?
Connex has an order previewer, which can show you the values. Here are the steps:
- Login to Connex.
- Click configure.
- Go to the order previewer.
- Fill out the form.
- Click the other tab.
You will see the merchant percent and merchant fee. Here is an example.
How should expenses be entered?
You should add expenses as a bill and payment in QuickBooks, if you get a bill. Go to vendors > vendor center and select a vendor. Click new > bill. Create a payment.
You can enter credit card fees in the bank deposits area > add new deposits area as a negative number, if orders go into bank deposits.
What happens if I enter fees per order?
Here is an order from QB with credit card fees. The fees credit the Cost of Goods Sold account:
The profit and loss looks fine:
This is a sales tax liability report. The gross sales should say $565 instead of $549.44:
You must report your gross sales, taxable and non-taxable sales to the state & municipal taxing agencies using another method.