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Sarah20's avatar
Sarah20
Member
1 year ago
Solved

mismatches between invoice and payment

Hello I use Square to process customer credit card purchases but they deduct their % before it hits my bank. this means the invoice and payment don't match by a few dollars. How can I do this process better?

  • Earl_HD's avatar
    Earl_HD
    1 year ago

    Hi Sarah20,

    In this situation, we recommend consulting with an accountant for an accurate solution. However, to give you an idea: to handle mismatches between the invoice and payment due to Square's fees, start by recording the full invoice amount. Then, record the payment as if no fees were deducted. To account for the Square fee, create an expense transaction (e.g., under a "Square Fees" account) in Spend Money. When reconciling, match the full payment and fee deduction with the bank deposit, which will reflect the net amount after fees. This helps keep your invoices accurate while accounting for the fees.
     

    For more detailed information, you can also visit this help article: Customer returns, credits and refunds

    Regards,
    Earl

6 Replies

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    1 year ago

    Hi Sarah20,

    In this situation, we recommend consulting with an accountant for an accurate solution. However, to give you an idea: to handle mismatches between the invoice and payment due to Square's fees, start by recording the full invoice amount. Then, record the payment as if no fees were deducted. To account for the Square fee, create an expense transaction (e.g., under a "Square Fees" account) in Spend Money. When reconciling, match the full payment and fee deduction with the bank deposit, which will reflect the net amount after fees. This helps keep your invoices accurate while accounting for the fees.
     

    For more detailed information, you can also visit this help article: Customer returns, credits and refunds

    Regards,
    Earl

  • Cheryl_M's avatar
    Cheryl_M
    Contributing User
    2 months ago

    Hi, I am having this issue now and not really understanding how to handle it from the above instructions. Is there an article with screenshots that I can look at for this?

    • Genreve_S's avatar
      Genreve_S
      MYOB Moderator
      2 months ago

      Hi Cheryl_M, 

       

      No worries, fees and payment allocation catch heaps of people out with Square.

      In MYOB Business, you’d usually:

      • Enter the invoice and customer payment for the full amount (before Square takes its cut).
      • Then, do a Spend money on the Square fee to a Square fees expense account.
      • On Reconcile / Bank transactions, match the one net bank deposit to both the customer payment and the fee so it agrees with what actually hit the bank.

      Because it’s to do with fees and GST, it’s worth a quick check with your accountant on which exact account and tax code they’d like you to use.

       

      Regards,
      Genreve 

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