Nominal code for processing fee/Service Charge

Accounting
1

Hi Guys,

I’m still trying to get organised with regards to sub-contractors I use from Upwork. Upwork charges 2.75% per transaction as noted as a ‘Processing Fee’ on the invoice. Is this classed as a bank charge? Or should I create a new nominal code for this? If so, could anyone shed any light as to what code would be appropriate?

Regards
Donna

2

I don’t see why this can’t go under “Bank Charges” or something like “Sales Commissions”.

If you want to differentiate then a custom code would also work fine.

3

Hi Glenn,

If i was to set up a new code for say ‘Sub-Contractor service fees’ or something like that, what range should I put it in?

4

I would say within 6000 - 6999 (Direct Expenses).