Topic: Adding bank fee to a Quote or Sales Order

What is the best way to add a bank fee (such as wire transfer fee) to a quote or sales order?

Last time I did one I added it to the shipping charges, but that does not seem right.

Should I create an Item 'WIRE FEE' but what GL accounts should I select for it?

Would I need to use the 'bank fee' field when processing the Customer Payment or would the GL codes from the Item handle it?

tom (programmer not accountant)

Re: Adding bank fee to a Quote or Sales Order

You are charging the customer for a fee, so it should be in the income section. However there is already an expense account for Bank Charge but this is merely for your own costs. So my advise is to create this in the income section.
Please check if you should charge tax on this wire amount. If not you should mark this with the correct item tax type. The item should be as a service.

If you have this cost yourself, then you should enter the fee in the bank charge field. The item code from the invoice line will only handle the sales (sales tax, charged bank fees and so). So you will most likely enter this cost when you do customer payment.


Re: Adding bank fee to a Quote or Sales Order

So the Sales Account: could be 4010 (Sales) or 4030 (Shipping and Handling) or maybe add a new one Wire Transfer fees(?)

What about COGS Account? should I use 5690 Interest and bank Charges?

I am sure it is not taxable


Re: Adding bank fee to a Quote or Sales Order

You can use the 4030 Shipping and Handling for this. You should then set this account as the Sales account on the service item for Wire Fee.
The COGS account is only used by the delivering. When delivering the Inventory (for stock items) the Inventory is credited and the COGS account is debited, but this is only for stock items. Service items do not create any GL transactions during delivery.
When you are registering the customer payment you can enter the wire fee (together with other fees) under Bank Charges. These fees are debited the 5690 Interest and Bank fees and credited the bank account you are using.

I hope this make the procedure clear smile