do you sometimes have to pay a fee just to pay a vendor's bill well this video will show you how
to record that in QuickBooks Online if you have any questions about this topic you can leave them
in the comment section below and I'll do my best to help you and of course if you feel the video
helped you I hope you will click like and don't forget to subscribe to get updates on new videos
that come out all the time usually there is no fee just to pay a vendor's bill but if there
is that usually the vendor pays the feed to the financial institution that processes the payment
in rare cases however the one paying the bill has to pay the fee to process the payment and
that's especially true when you pay a vendor from your own preferred payment platform such as PayPal
or some other institution that you want to pay from so what's the problem well there's only one
payment recorded in your bank account for both the fee and the bill you are paying therefore you must
only record in your QuickBooks records one and only one payment in the amount of the bill plus
the fee this is because you must reconcile your quickbooks records with your bank records and they
must match however the fee is a different expense than the expense that's listed on the bill so what
do you do well the only real solution is to do the following on the day that you pay you first enter
a separate bill only for the transaction fee the bill date must be the date you pay this bill will
record the bank fee expense of the processing of the payment you must put the vendor you are
paying as the vendor on the bill not the pay platform that gets it for example if you're
paying Verizon and you have to make a payment fee the bill you enter for the payment fee should have
the vendor as Verizon not the vendor as Chase Bank or PayPal or anyone else the bill for the
fee has to be entered as the same vendor as the original bill that you're paid this way you can
pay both bills by recording only one transaction into the QuickBooks Online pay bills window the
way it would look on your statement when you reconcile for example let's imagine on April
7th we paid bill number three two one zero from Verizon with an additional $15 payment fee we must
enter a bill for $15 and the bill date must be April 7th the expense on this new bill should be
bank fees unless you set aside a specific expense specifically for payment fees to vendors you can
put an explanation and the name of the financial institution and either the memo or the description
field and then you pay both bills with one payment on the same day April 7th with one entry
and that's what gets you to match your bank when you do your bank reconciliation later let's take
a look at how to record this particular situation we go to the column where it says bill and we make
sure we put the date April 7th of 2017 because that's where we are in our little story and the
vendor is Verizon because that's who we pay now of course the expense will be bank fees again unless
you set aside a specific expense the amount is 15 dollars in this example and of course you should
put in the description the reason why you have this bill be as clear as you can and now this
bill will record the fifteen dollar fee at the moment that you pay we click Save and close and
now we're ready to pay both bills at once and have everything recorded in one entry the way it would
look on your bank statement this time we go down to the pay bills window and again make sure it
says April 7th of 2017 and this time I guess we'll have to click filter and do this we want to see
all dates and we want to see only Verizon so you should get comfortable with the filter tab here in
the pay bills window and now we see all the bills to Verizon now we are paying the full amount of
bill 3 2 1 0 but we are also paying an additional 15 dollar fee the amount that's coming out of our
bank account with one entry on April 7th is this 895 dollars that's why we have to check them
both this way as being paid to the same vendor Verizon now we click Save & close and everything
is exactly as it should be the bank account has one entry that decreased by the whole amount just
like it'll show on the bank statement the extra fee is recorded as a bank fee in the correct
amount as of the actual date that we incurred that expense and the original bill is paid and this is
the way to record that situation one final note you should not change the vendors bill by adding
the payment fee expense if you do that quickbooks online will record the expense as of the bill date
not the payment date and that's not correct you do not have the payment fee until the day of payment
that's the wrong way to do it so do it the right way the way you just learned in this video you