Bank charges and interest

How to record bank charges, fees or bank interest you've paid or received. How you do this depends on how you want track your bank charges and interest and how you enter bank transactions. We provide the following options

  • When you import from a bank feed or statement.

  • When you reconcile your bank account

  • As a manual receipt or payment.

Before you start

  1. Decide which to use to track your bank interest and charges. If you use our default chart of accounts, the appropriate ledger accounts is 7900 - Bank Charges and Interest.

  2. Set this in the transaction settings to make sure we select the correct ledger accounts automatically.

    1. From Settings, choose Business Settings, then Record and Transaction Settings.

    2. Bank interest received ledger account. Select the default ledger account to use when recording bank interest received.

    3. Bank interest and charges paid ledger account. Select the default ledger account to use when recording bank interest and charges paid.

From a bank feed or imported statement

Bank charges and interest are included with all other transactions imported from a bank feed or bank statement.

The charges could be

  • As separate transactions for interest and fees charged for the whole account.

  • The amount of a payment or receipt is adjusted to reflect the charges. This can happen when

    • it's been converted from another currency.

    • it includes processing fees from a third party such as PayPal.

Separate transactions

  1. From the incoming transactions page, choose the for Charges and Interest.

  2. Select Create.

Where the receipt or payment is adjusted

  1. From the incoming transactions page, choose Match.

  2. Find the invoice that is being paid.

  3. Change the payment amount to match the invoice amount

  4. Select Make Adjustment.

  5. Enter the details for the bank charges. Select Add and then select Match.

When you reconcile your bank account

  1. From the Bank Reconciliation page, choose Add Interest and Charges.

  2. Enter the details of the interest or charges

  3. Select Save.

As a manual payment or receipt

For interest and charges being paid

  1. From Banking, choose New.
  2. Select Purchase / Payment, then Other Payment

  3. Enter the details. You must enter the following

    Paid from Bank Account

    Method

    Date Paid

    Amount Paid

    - choose the Bank Charges and Interest .

  4. Save.

For interest received

  1. From Banking, choose New.
  2. Select Sales /Receipt, then Other Receipt

  3. Enter the details. You must enter the following

    Paid into Bank Account

    Method

    Date Paid

    Amount Received

    - choose the Bank Charges and Interest.

  4. Save.