How to subtract fees from a vendor invoice and split that to a holding account

On some of my vendor invoices I have fees that I subtract if they chose a "Quick Pay" service. If I enter the amount as a subtraction on the invoice that amount is showing up in my 'holding/reserve' account (these funds are held by a 3rd party and distributed Month End) that holding account's balance is a negative. Which means I can't pay/transfer those fees out at the end of the month. Is there a better way of doing this as I pay the vendors?

Answers

  • rnicholson
    rnicholson Member
    For futher info; I'm using Quicken Home & Biz. I have entered my vendor invoices and now I need to apply payments. On some of these vendor invoices there are fees that are subtracted if the vendor chose to be paid "QuickPay". All of my vendor payments are managed by a 3rd party company and that fee income is split between us. So I need to track it as an income to myself as well as a fee to the 3rd party company. So what I did was set up a QuickPay reserve asset account to hold those fees until they are distributed at the end of each month. But I realized that if I entered the QP Fee as a subtraction from the vendor invoice that it was showing up in the QP Reserve account as a negative balance. Which meant that I wouldn't be able to transfer out of it at the end of the month. So I entered the amount of the invoice showing the QP Fee as part of the invoice; EX $1425 line item and $75 for QP fee = $1500 total. But of course 3rd party company only pays $1425 and retains 1.5% of the QP Fee when they send the ACH payment. Is there a better way of doing this?