Payment received less than invoice amount due to bank charge

Hi I have received a payment from a customer in USD but it is about 20 dollars short, i was told this was deducted by an intermediate bank straight from the total amount, so i can i log the invoice as paid in full still? and how do i log the difference as bank charge?

Hello @sinowayuk

  • You would pay the invoice in full using a merchant account
  • Record the money out transaction for the charge and tag it to a nominal, something like bank charges
  • The remaining amount can then be transferred to your current account

Here is some more information on using merchant accounts

thanks steve, it seems bit complicated, or shall i just issue a credit note to reduce the invoice balance?

Hello @sinowayuk

This would reduce your sales by the equivalent of 20 dollars.

And you would still want to record the bank fee in your overheads.

Note I am not a registered accountant so it may be worth checking the best course of action.

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